Analysts rate Williams Companies Inc. (WMB:NYE) with a Strong Buy rating and $38.20 target

STA Research
by: STA Research

Based on the Williams Companies Inc. stock forecasts from 9 analysts, the average analyst target price for Williams Companies Inc. is USD 38.20 over the next 12 months. Williams Companies Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Williams Companies Inc. is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, Williams Companies Inc.’s stock price was USD 32.00. Williams Companies Inc.’s stock price has changed by -1.58% over the past week, -0.45% over the past month and +32.56% over the last year.

About Williams Companies Inc. (WMB:NYE)

The Williams Companies, Inc. and its subsidiaries are an energy infrastructure business that primarily serves the US market. Its segments include Gas & NGL Marketing Services, Northeast G&P, Transmission & Gulf of Mexico, and West.

total of 30,000 miles of pipelines, 29 processing facilities, 7 fractionation facilities, and about 23 million barrels of NGL storage capacity are owned and operated by the firm. The headquarters of The Williams Companies, Inc. are in Tulsa, Oklahoma, where it was established in 1908.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

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