Williams Partners

Dividend Yield: 6.40%

Williams Partners (NYSE: WPZ) shares currently have a dividend yield of 6.40%.

Williams Partners L.P., an energy infrastructure company, focuses on connecting North America's hydrocarbon resource plays to growing markets for natural gas and natural gas liquids (NGL). It operates in two segments, Gas Pipeline and Midstream Gas & Liquids. The company has a P/E ratio of 34.18.

The average volume for Williams Partners has been 1,206,900 shares per day over the past 30 days. Williams Partners has a market cap of $21.8 billion and is part of the chemicals industry. Shares are up 7.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Williams Partners as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 40.60% is the gross profit margin for WILLIAMS PARTNERS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.28% is above that of the industry average.
  • WPZ, with its decline in revenue, slightly underperformed the industry average of 8.8%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of WILLIAMS PARTNERS LP has not done very well: it is down 6.86% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • WILLIAMS PARTNERS LP's earnings per share declined by 41.2% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WILLIAMS PARTNERS LP reported lower earnings of $1.94 versus $3.68 in the prior year. For the next year, the market is expecting a contraction of 8.5% in earnings ($1.78 versus $1.94).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has decreased by 21.3% when compared to the same quarter one year ago, dropping from $408.00 million to $321.00 million.

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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.
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