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Willis Towers Watson

LSE:0Y4Q
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0Y4Q
LSE
$23B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. The last earnings update was 15 days ago. More info.


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0Y4Q Share Price and Events
7 Day Returns
0%
LSE:0Y4Q
3.5%
GB Insurance
0.6%
GB Market
1 Year Returns
16.2%
LSE:0Y4Q
-5%
GB Insurance
1.1%
GB Market
0Y4Q Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Willis Towers Watson (0Y4Q) 0% 2.6% 13.1% 16.2% - -
GB Insurance 3.5% 4.9% 10.1% -5% 14.9% 23.7%
GB Market 0.6% 2.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • 0Y4Q outperformed the Insurance industry which returned -5% over the past year.
  • 0Y4Q outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
0Y4Q
Industry
5yr Volatility vs Market
Related Companies

0Y4Q Value

 Is Willis Towers Watson undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Willis Towers Watson to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Willis Towers Watson.

LSE:0Y4Q Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $76.61 * 4.7%
$3.58
Book Value of Equity per Share Median Book Value from the past 5 years. $76.61
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0Y4Q
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 19%) (20.09%))
0.894
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.894 * 6.65%)
7.17%

Discounted Cash Flow Calculation for LSE:0Y4Q using Excess Returns Model Model

The calculations below outline how an intrinsic value for Willis Towers Watson is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0Y4Q Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (4.7% – 7.17%) * $76.61)
$-1.91
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-1.91 / (7.17% - 1.23%)
$-32.19
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $76.61 + $-32.19
$44.42
LSE:0Y4Q Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0Y4Q represents 1.00026x of NasdaqGS:WLTW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00026x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 44.42 x 1.00026
$44.43
Value per share (USD) From above. $44.43
Current discount Discount to share price of $177.42
= -1 x ($177.42 - $44.43) / $44.43
-299.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Willis Towers Watson is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Willis Towers Watson's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Willis Towers Watson's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0Y4Q PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.31
NasdaqGS:WLTW Share Price ** NasdaqGS (2019-04-09) in USD $177.37
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Willis Towers Watson.

LSE:0Y4Q PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WLTW Share Price ÷ EPS (both in USD)

= 177.37 ÷ 5.31

33.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Willis Towers Watson is overvalued based on earnings compared to the GB Insurance industry average.
  • Willis Towers Watson is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Willis Towers Watson's expected growth come at a high price?
Raw Data
LSE:0Y4Q PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
23%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0Y4Q PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.43x ÷ 23%

1.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Willis Towers Watson is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Willis Towers Watson's assets?
Raw Data
LSE:0Y4Q PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $76.39
NasdaqGS:WLTW Share Price * NasdaqGS (2019-04-09) in USD $177.37
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0Y4Q PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WLTW Share Price ÷ Book Value per Share (both in USD)

= 177.37 ÷ 76.39

2.32x

* Primary Listing of Willis Towers Watson.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Willis Towers Watson is overvalued based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Willis Towers Watson's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Willis Towers Watson has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

0Y4Q Future Performance

 How is Willis Towers Watson expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Willis Towers Watson expected to grow at an attractive rate?
  • Willis Towers Watson's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Willis Towers Watson's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Willis Towers Watson's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0Y4Q Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0Y4Q Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 23%
LSE:0Y4Q Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.3%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0Y4Q Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0Y4Q Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 9,815 2
2020-12-31 9,233 1,654 1,112 8
2019-12-31 8,863 1,599 959 8
LSE:0Y4Q Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 8,513 1,288 695
2018-09-30 8,133 1,063 562
2018-06-30 8,126 938 464
2018-03-31 8,089 785 439
2017-12-31 8,202 862 568
2017-09-30 8,028 827 495
2017-06-30 7,937 816 517
2017-03-31 7,878 909 526
2016-12-31 7,887 933 450
2016-09-30 6,844 751 254
2016-06-30 5,924 672 403
2016-03-31 4,947 426 401

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Willis Towers Watson's earnings are expected to grow significantly at over 20% yearly.
  • Willis Towers Watson's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0Y4Q Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Willis Towers Watson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0Y4Q Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 8.97 9.42 7.90 4.00
2019-12-31 7.41 8.03 6.48 4.00
LSE:0Y4Q Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.31
2018-09-30 4.26
2018-06-30 3.49
2018-03-31 3.28
2017-12-31 4.21
2017-09-30 3.63
2017-06-30 3.79
2017-03-31 3.83
2016-12-31 3.28
2016-09-30 2.12
2016-06-30 3.93
2016-03-31 4.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Willis Towers Watson is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Willis Towers Watson's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Willis Towers Watson has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

0Y4Q Past Performance

  How has Willis Towers Watson performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Willis Towers Watson's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Willis Towers Watson's year on year earnings growth rate has been positive over the past 5 years.
  • Willis Towers Watson's 1-year earnings growth exceeds its 5-year average (22.4% vs 11.4%)
  • Willis Towers Watson's earnings growth has exceeded the GB Insurance industry average in the past year (22.4% vs 5.3%).
Earnings and Revenue History
Willis Towers Watson's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Willis Towers Watson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0Y4Q Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,513.00 695.00 295.00
2018-09-30 8,133.00 562.00 302.00
2018-06-30 8,126.00 464.00 302.00
2018-03-31 8,089.00 439.00 302.00
2017-12-31 8,202.00 568.00 302.00
2017-09-30 8,028.00 495.00 302.00
2017-06-30 7,937.00 517.00 302.00
2017-03-31 7,878.00 526.00 302.00
2016-12-31 7,887.00 450.00 302.00
2016-09-30 6,844.00 254.00
2016-06-30 5,924.00 403.00
2016-03-31 4,947.00 401.00
2015-12-31 3,809.00 343.00 142.00
2015-09-30 3,778.00 473.00
2015-06-30 3,745.00 349.00
2015-03-31 3,758.00 326.00
2014-12-31 3,767.00 362.00
2014-09-30 3,739.00 354.00
2014-06-30 3,722.00 334.00
2014-03-31 3,677.00 392.00
2013-12-31 3,633.00 365.00
2013-09-30 3,589.00 -507.00 13.00
2013-06-30 3,547.00 -454.00 13.00
2013-03-31 3,499.00 -452.00 13.00
2012-12-31 3,458.00 -446.00
2012-09-30 3,377.00 382.00
2012-06-30 3,388.00 416.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Willis Towers Watson has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Willis Towers Watson used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Willis Towers Watson's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Willis Towers Watson's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Willis Towers Watson has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

0Y4Q Health

 How is Willis Towers Watson's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Willis Towers Watson's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Willis Towers Watson is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Willis Towers Watson's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Willis Towers Watson's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Willis Towers Watson Company Filings, last reported 3 months ago.

LSE:0Y4Q Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,997.00 4,604.00 1,033.00
2018-09-30 10,190.00 4,684.00 931.00
2018-06-30 10,374.00 4,674.00 911.00
2018-03-31 10,830.00 4,592.00 954.00
2017-12-31 10,277.00 4,563.00 1,030.00
2017-09-30 10,081.00 4,578.00 912.00
2017-06-30 10,444.00 4,182.00 852.00
2017-03-31 10,457.00 4,095.00 901.00
2016-12-31 10,234.00 3,865.00 870.00
2016-09-30 10,954.00 3,786.00 767.00
2016-06-30 11,240.00 3,809.00 949.00
2016-03-31 11,357.00 3,911.00 954.00
2015-12-31 2,413.00 3,325.00 532.00
2015-09-30 2,538.00 2,571.00 466.00
2015-06-30 2,541.00 2,522.00 483.00
2015-03-31 2,372.00 2,305.00 503.00
2014-12-31 2,066.00 2,297.00 635.00
2014-09-30 2,273.00 2,313.00 656.00
2014-06-30 2,462.00 2,317.00 708.00
2014-03-31 2,472.00 2,322.00 734.00
2013-12-31 2,243.00 2,389.00 796.00
2013-09-30 2,047.00 2,356.00 623.00
2013-06-30 2,000.00 2,368.00 503.00
2013-03-31 1,893.00 2,427.00 531.00
2012-12-31 1,725.00 2,406.00 500.00
2012-09-30 2,698.00 2,405.00 424.00
2012-06-30 2,711.00 2,438.00 407.00
  • Willis Towers Watson's level of debt (46.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (106.4% vs 46.1% today).
  • Debt is well covered by operating cash flow (28%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).
X
Financial health checks
We assess Willis Towers Watson's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Willis Towers Watson has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

0Y4Q Dividends

 What is Willis Towers Watson's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.47%
Current annual income from Willis Towers Watson dividends. Estimated to be 1.49% next year.
If you bought $2,000 of Willis Towers Watson shares you are expected to receive $29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Willis Towers Watson's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Willis Towers Watson's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0Y4Q Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0Y4Q Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.92 4.00
2020-12-31 2.68 8.00
2019-12-31 2.49 8.00
LSE:0Y4Q Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-27 2.600 1.483
2018-11-26 2.400 1.515
2018-09-10 2.400 1.639
2018-05-25 2.400 1.568
2018-02-26 2.400 1.562
2017-11-16 2.120 1.357
2017-09-19 2.120 1.340
2017-05-17 2.120 1.438
2017-03-01 2.120 1.608
2017-02-09 2.120 1.673
2016-10-20 1.920 1.548
2016-07-22 1.920 1.530
2016-05-10 1.920 1.536
2016-05-06 1.920 1.555
2016-02-29 1.920 1.604
2016-02-09 1.920 1.732
2015-11-05 3.285 2.779
2015-10-28 3.285 2.758
2015-08-06 3.285 2.876
2015-07-29 3.285 2.652
2015-05-06 3.285 2.622
2015-04-29 3.285 2.571
2015-02-24 3.285 2.553
2015-02-10 3.285 2.610
2014-11-06 3.179 2.750
2014-10-28 3.179 2.952
2014-04-29 3.179 2.868
2014-02-27 3.179 2.808
2014-02-12 3.179 2.876
2013-10-29 2.967 2.531
2013-07-24 2.967 2.593
2013-04-30 2.967 2.730
2013-02-12 2.967 2.930
2012-10-23 2.861 3.133
2012-08-01 2.861 2.958
2012-04-26 2.861 3.001
2012-02-14 2.861 3.056
2011-10-24 2.755 2.763
2011-08-03 2.755 2.868
2011-05-05 2.755 2.562
2011-02-09 2.755 2.628
2010-10-27 2.755 3.043
2010-07-28 2.755 3.384
2010-04-28 2.755 3.291
2010-02-03 2.755 3.385
2009-10-27 2.755 3.844
2009-07-29 2.755 3.881
2009-04-29 2.755 3.961
2009-04-21 2.755 4.217

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Willis Towers Watson's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Willis Towers Watson's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Willis Towers Watson afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Willis Towers Watson has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

0Y4Q Management

 What is the CEO of Willis Towers Watson's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Haley
COMPENSATION $4,991,828
AGE 68
TENURE AS CEO 3.3 years
CEO Bio

Mr. John J. Haley has been the Chief Executive Officer and Executive Director of Willis Towers Watson Public Limited Company since January 04, 2016. Mr. Haley serves as President and Chief Executive Officer of Watson Wyatt & Company. He served as the Chairman and Chief Executive Officer of Towers Watson & Co. (Watson Wyatt & Company Holdings) since January 1, 2010 until January 4, 2016. Mr. Haley served as President of Towers Watson & Co. since October 03, 2011 until January 4, 2016 and previously since January 01, 1999. He served as Global Director of Benefits Group at Watson Wyatt. He joined Towers Watson (Watson Wyatt Worldwide) (Watson Wyatt) in 1977. He was Chairman of the Board of Watson Wyatt & Company Holdings since 1999. He serves as a Director of Watson Wyatt LLP and Watson Wyatt & Company Holdings). He served as a Director of Maximus, Inc., since June 2002 until January 4, 2019. He serves as a Member of the Board of Directors of Employee Benefit Research Institute. He serves as a Director of the US-China Business Council, Inc. He served as an Inside Director of Towers Watson & Co. since 1992 until January 4, 2016. He served as an Independent Director of Hudson Highland Group Inc (Hudson Global, Inc) since April 2003 until June 15, 2015. He is a Member of the American Academy of Actuaries, the International Actuarial Association and the International Association of Consulting Actuaries. Mr. Haley is a Trustee of The Actuarial Foundation. He served as the Lead Director of Hudson Global, Inc. He also served on the Technical Panel of Experts for President Clinton's Advisory Council on Social Security. He serves as Chairperson of the Society of Actuaries Committee on Guides to Professional Conduct. He is a Co-Author of Fundamentals of Private Pensions (University of Pennsylvania Press). He was a recipient of the prestigious Marco Polo Award, which recognized Watson Wyatt's commitment to China's economic development. Mr. Haley is a Fellow of the Society of Actuaries and the Conference of Consulting Actuaries. He is a Consulting Actuary, primarily in the retirement field, where he specializes in consulting for large companies. Mr. Haley received a Fellowship for two years of study at the Graduate School of Mathematics at Yale University. He holds an A.B. Degree in Mathematics from Rutgers College.

CEO Compensation
  • John's compensation has increased by more than 20% in the past year.
  • John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Willis Towers Watson management team in years:

3
Average Tenure
54
Average Age
  • The tenure for the Willis Towers Watson management team is about average.
Management Team

John Haley

TITLE
CEO & Executive Director
COMPENSATION
$5M
AGE
68
TENURE
3.3 yrs

Mike Burwell

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
54
TENURE
1.5 yrs

Todd Jones

TITLE
Head of Corporate Risk & Broking
COMPENSATION
$3M
AGE
53
TENURE
2.5 yrs

Julie Gebauer

TITLE
Head of Human Capital & Benefits
COMPENSATION
$3M
AGE
57
TENURE
3.3 yrs

Gene Wickes

TITLE
Head of Benefits Delivery & Administration
COMPENSATION
$3M
AGE
66
TENURE
3 yrs

David Shalders

TITLE
Operations & Technology Director
COMPENSATION
$3M
AGE
51
TENURE
3.3 yrs

Chris Ford

TITLE
Global Head of Investment

Susan Davies

TITLE
Principal Accounting Officer & Group Controller
AGE
49
TENURE
3.2 yrs

Anne Pullum

TITLE
Chief Administrative Officer and Head of Strategy & Innovation
TENURE
2.5 yrs

Rich Keefe

TITLE
Head of Financial Planning & Analysis and Investor Relations
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Willis Towers Watson board of directors in years:

3.3
Average Tenure
68.5
Average Age
  • The tenure for the Willis Towers Watson board of directors is about average.
Board of Directors

Victor Ganzi

TITLE
Chairman
COMPENSATION
$316K
AGE
71
TENURE
0.3 yrs

John Haley

TITLE
CEO & Executive Director
COMPENSATION
$5M
AGE
68
TENURE
3.3 yrs

Rowan Douglas

TITLE
Chairman of Willis Research Network & CEO of Capital Science & Policy Practice
TENURE
13.3 yrs

James Vickers

TITLE
Chairman of Willis Re International & Specialty

Paddy Jago

TITLE
Global Chairman of Willis Re & Chairman of Willis Re North America
TENURE
4.3 yrs

Huichih Ko

TITLE
Chairman of Willis Asia
TENURE
4.6 yrs

Jim McCann

TITLE
Director
COMPENSATION
$411K
AGE
67
TENURE
3.3 yrs

Wendy Lane

TITLE
Independent Director
COMPENSATION
$318K
AGE
67
TENURE
3.3 yrs

Brendan O'Neill

TITLE
Independent Director
COMPENSATION
$302K
AGE
69
TENURE
3.3 yrs

Wilhelm Zeller

TITLE
Independent Director
COMPENSATION
$310K
AGE
74
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • Willis Towers Watson insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Feb 19 Sell Adam Garrard Individual 13. Feb 19 13. Feb 19 -3,517 $171.71 $-603,915
13. Nov 18 Sell Julie Gebauer Individual 13. Nov 18 13. Nov 18 -10,000 $160.15 $-1,601,525
08. Nov 18 Sell Adam Garrard Individual 07. Nov 18 07. Nov 18 -2,850 $153.92 $-438,661
X
Management checks
We assess Willis Towers Watson's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Willis Towers Watson has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

0Y4Q News

Simply Wall St News

0Y4Q Company Info

Description

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. The company’s Human Capital and Benefits segment offers actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. It also provides advice, data, software, and products to address clients’ total rewards and talent issues. Its Corporate Risk and Broking segment offers risk advice, insurance brokerage, and consulting services in the areas of property and casualty, financial lines, transport, and facultative. The company’s Investment, Risk and Reinsurance segment offers capital markets-based products to insurance and reinsurance companies; software and technology, risk and capital management, products and pricing, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; investment advice and solutions to pension funds and institutional investors; wholesale insurance broking services to retail and wholesale brokers; and underwriting and capital management, capital market, and advisory and brokerage services. Its Benefits Delivery and Administration segment provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees in the group and individual markets. This segment delivers healthcare and reimbursement accounts, including health savings accounts, health reimbursement arrangements, flexible spending accounts, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

Details
Name: Willis Towers Watson Public Limited Company
0Y4Q
Exchange: LSE
Founded: 1828
$22,916,246,391
129,200,239
Website: http://www.willistowerswatson.com
Address: Willis Towers Watson Public Limited Company
51 Lime Street,
London,
Greater London, EC3M 7DQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WLTW Common Stock Nasdaq Global Select US USD 12. Jun 2001
DB WTY Common Stock Deutsche Boerse AG DE EUR 12. Jun 2001
LSE 0Y4Q Common Stock London Stock Exchange GB USD 12. Jun 2001
Number of employees
Current staff
Staff numbers
43,300
Willis Towers Watson employees.
Industry
Insurance Brokers
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 22:07
End of day share price update: 2019/04/09 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.