Williams Companies Inc Stock Buy Recommendation Reiterated (WMB)
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- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS COS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- 41.20% is the gross profit margin for WILLIAMS COS INC which we consider to be strong. Regardless of WMB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WMB's net profit margin of 8.80% compares favorably to the industry average.
- WMB, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 11.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- WILLIAMS COS INC's earnings per share declined by 41.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WILLIAMS COS INC turned its bottom line around by earning $1.35 versus -$1.88 in the prior year. For the next year, the market is expecting a contraction of 14.8% in earnings ($1.15 versus $1.35).
- The debt-to-equity ratio is very high at 3.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, WMB's quick ratio is somewhat strong at 1.17, demonstrating the ability to handle short-term liquidity needs.
--Written by a member of TheStreet Ratings Staff. FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!
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