Home Sectors Energy Long or Short: Williams Companies (NYSE: WMB)

Long or Short: Williams Companies (NYSE: WMB)

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Williams Companies trades as part of the oil and gas midstream industry and trades as part of the energy sector. The company CEO is Alan S. Armstrong. Williams Companies Inc is a large pipeline company. It owns stakes in and operates 15,000 miles of interstate gas pipelines and 1,000 miles of natural gas liquids pipelines. The company also produces olefins for petrochemical feedstocks.

Previous Intraday Trading Performance:

The WMB stock showed a previous change of -0.60% with an open at 26.75 and a close of 26.72. It reached an intraday high of 26.83 and a low of 26.60.

SeekingAlpha:  Midstream Not Green, No New Deals

Liquidity:

The stock has a market cap of $32.3b with 1.2b shares outstanding, of which the float is 1.2b shares. Trading volume reached 9,687,731 shares compared to its average volume of 9,042,927 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Williams Companies shares returned -2.30% and in the past 30 trading days it returned 24.39%. Over three months, it changed 9.15%. In one year it has changed -4.40% and within that year its 52-week high was 32.22 and its 52-week low was 20.36. WMB stock is 31.24% above its 52 Week Low.

Our calculations show a 200 day moving average of 26.32 and a 50 day moving average of 24.77. Currently WMB stock is trading 1.51% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Midstream Not Green, No New Deals

Earnings:

The last annual fiscal EPS for the company was reported at 2.62 that ended on 31st of December 2017, which according to the previous close, that is a PE of 10.20. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.22. The TTM EPS is 0.80, which comes to a TTM PE of 33.40.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.24
06-30-2018:  0.17
03-31-2018:  0.19
12-31-2017:  0.20

The dividend per share is currently 1.36, which is a dividend yield of 5.09%. WMB stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 19.88, which means it may be overvalued by -34.43%

Indicators to Watch:

Based on the latest filings, there is 0.40% of insider ownership and 137.90% of institutional ownership. Short-interest is 41,126,084, which is 3.40% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.50. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.75

SeekingAlpha:  Trump’s China Caution Deflates Investors On Edge Over Trade (Wall Street Breakfast Podcast)

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 17.76%, return on assets is 4.51%, profit margin is 11.40%, price-to-sales is 5.02 and price-to-book is 2.09.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 4  :Past Performance Score
 0  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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