Stock Analysis/Share Presentation โฌ๏ธ
Today we are talking about the company Williams Companies: $WMB (-6.33%)
What is and what does William Companies do anyway ๐ค.
Williams Companies is a US company in the energy sector. The company is a more than 100-year-old U.S. oil and natural gas company that serves as an energy infrastructure provider connecting North American hydrocarbon reserves with growing markets for natural gas, liquefied natural gas, and olefins.
How is net sales distributed: ๐ง
Net sales break down by activity as follows:
- Natural gas transportation and storage (77.5%)
- Sale of natural gas and LNG (21.6%)
- Other (0.9%)
All net sales are generated in the United States.
When was the company founded:
Williams Companies was founded in 1908 by David Williams and Miller Williams and is headquartered in Tulsa, Oklahoma. i.
How many employees does the company have: ๐๐ฝโโ๏ธ๐๐ปโโ๏ธ
Currently, the company employs approximately 5,000 people.
P/E RATIO:
The company is currently valued at a P/E ratio of approximately 16.9, which is not very high.
Market capitalization: ๐ฆ
The company has a current market capitalization of around 32 billion euros.
Dividend yield: ๐ฐ
Williams Companies pays its shareholders a dividend yield of almost 6.3% per share on a quarterly basis. These distributions follow in March, June, September, and December.
Strengths of the share: ๐
- The average analyst price target is relatively far from the current price, suggesting potentially significant upside.
- Predictability on the company's business activity is excellent. The analysts who follow the company are very close in their estimates of future sales growth. This low dispersion of estimates makes it possible to confirm both the good predictability of sales in the current year and in subsequent years
- The company's business activity shows a high level of profitability thanks to high profit margins.
- The company pays an attractive dividend to its shareholders
- The company is not exactly highly valued with a P/E ratio of just under 17
Weaknesses of the share: ๐
- Relative to the value of its property, plant and equipment, the company's valuation appears relatively high.
- The outlook for sales development in the coming years has been revised downward in the last four months.
A little more detail on the sector:
Williams Companies operates in the utility market. Energy is primarily generated by burning fossil fuels. It will be some time before renewable energy sources are developed to the point where they can meet our energy needs. Until then, the energy sources oil, coal and gas are of great importance for the energy supply.
Since Williams generates most of its revenue from the production and sale of natural gas, let's look first at the natural gas industry. Every year, 4 billion cubic meters of natural gas are consumed worldwide. And in the future, consumption will continue to rise. Expected at 3% per year over the next 5 years. This means that demand for natural gas is significantly higher than for oil.
This is because natural gas is a more environmentally friendly energy alternative to oil. Fewer emissions are released during combustion. For this reason, natural gas is seen as a transitional solution until the complete switch to renewable energy.
Despite being a fossil fuel, natural gas is expected to continue to account for a significant portion of the overall energy market in the long term. In 2050, just under 30 years from now, natural gas is still expected to be a part of the energy mix at 15%.
Furthermore, the liquefied natural gas (LNG) sector could also become more interesting in the future. LNG is produced from natural gas by technical processes and can then be transported to the respective regions by transport ships.
The demand for LNG has steadily increased over the past decades. In 2021, the global trade volume of LNG was around 516 billion cubic meters. With regard to the dependence of Russian gas in Europe, the import of LNG can provide relief.
Currently, however, we are still dependent on fossil fuels. After all, the sun doesn't always shine when we need it and the wind may blow too strongly or too weakly. Even though the shift to renewable energy has picked up speed in recent years, it will not be possible to phase out fossil energy for years and decades to come.
How does the share look from a chart perspective? (US dollar converted into euros) ๐๐
Let's take a look at the chart. We are currently at a price of just under โฌ26.60 and thus also directly at a very important zone. We are currently at a strong support zone at just under โฌ26.25, which has now been approached several times, but after briefly falling below this line has jumped directly back above this zone. It is now important to slowly rise again in the direction of 27.70โฌ. There is the first resistance. If this is also broken through in the future, the next resistance is at 28.70โฌ. After that, the zones 29.80โฌ and 30.50โฌ are also important. These would be the next resistances that you should have on the screen.
Target of the company: ๐
As the world demands reliable, low-cost, low-carbon energy, Williams aims to be there with the best transportation, storage, and delivery solutions to keep people energized. The company claims to make clean energy possible by being the best operator of critical infrastructure that supports a clean energy future.
So that both businesses and homes can operate their machines, cook food and turn the light switch on and off without worry, the company aims to provide safer, more reliable, affordable and cleaner energy.
My opinion: ๐๐ฝโโ๏ธ
I find the company very exciting and currently also relatively inexpensive. In addition, I find the dividend very tempting as a dividend investor. Nevertheless, I'm going to wait and see because, as I wrote, we are at a strong and important support. If this is broken, it could go further down for the time being.
Your opinion: ๐ค
Now I would like to hear your opinion about this stock in the comments.
What do you think about Evergy and did you already know this company?
Do you have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I want to share with you.
