Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- .
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Highlights from the ratings report include:
- WILLIAMS COS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WILLIAMS COS INC turned its bottom line around by earning $1.53 versus -$1.88 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.53).
- The revenue fell significantly faster than the industry average of 25.1%. Since the same quarter one year prior, revenues fell by 13.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, WMB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 355.2% when compared to the same quarter one year ago, falling from $174.00 million to -$444.00 million.
The Williams Companies, Inc., through its subsidiaries, engages in finding, producing, gathering, processing, and transporting natural gas primarily in the United States. The company has a P/E ratio of 26.4, below the average energy industry P/E ratio of 51.5 and above the S&P 500 P/E ratio of 17.7. Williams Companies has a market cap of $20.32 billion and is part of the
industry. Shares are down 1.8% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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