LSE:0Y4Q

Stock Analysis Report

Executive Summary

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide.


Snowflake Analysis

Solid track record and slightly overvalued.


Similar Companies

Share Price & News

How has Willis Towers Watson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0Y4Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

0Y4Q

20.2%

GB Insurance

6.2%

GB Market


1 Year Return

-11.2%

0Y4Q

-26.5%

GB Insurance

-22.7%

GB Market

Return vs Industry: 0Y4Q exceeded the UK Insurance industry which returned -26.5% over the past year.

Return vs Market: 0Y4Q exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

0Y4QIndustryMarket
7 Day4.3%20.2%6.2%
30 Day-23.2%-16.5%-17.8%
90 Day-22.8%-26.7%-27.7%
1 Year-10.4%-11.2%-18.4%-26.5%-18.6%-22.7%
3 Yearn/a-16.9%-31.7%-13.4%-24.6%
5 Yearn/a-7.5%-31.1%1.3%-22.0%

Price Volatility Vs. Market

How volatile is Willis Towers Watson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Willis Towers Watson undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0Y4Q ($155.62) is trading below our estimate of fair value ($219.11)

Significantly Below Fair Value: 0Y4Q is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0Y4Q is poor value based on its PE Ratio (20.8x) compared to the Insurance industry average (13.2x).

PE vs Market: 0Y4Q is poor value based on its PE Ratio (20.8x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0Y4Q is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 0Y4Q is overvalued based on its PB Ratio (2.1x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

How is Willis Towers Watson forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0Y4Q's forecast earnings growth (11.4% per year) is above the savings rate (0.5%).

Earnings vs Market: 0Y4Q's earnings (11.4% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0Y4Q's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0Y4Q's revenue (4.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0Y4Q's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0Y4Q's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

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

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0Y4Q has high quality earnings.

Growing Profit Margin: 0Y4Q's current net profit margins (11.5%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 0Y4Q's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: 0Y4Q's earnings growth over the past year (50.2%) exceeds its 5-year average (21.3% per year).

Earnings vs Industry: 0Y4Q earnings growth over the past year (50.2%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0Y4Q's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Willis Towers Watson's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0Y4Q has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0Y4Q's debt is covered by short term assets (assets are 3x debt).


Financial Institutions Analysis

Asset Level: 0Y4Q's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0Y4Q has a sufficient allowance for bad loans.

Low Risk Liabilities: 0Y4Q reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0Y4Q has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0Y4Q has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0Y4Q has an appropriate level of bad loans.


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0Y4Q's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0Y4Q's dividend (1.63%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: 0Y4Q's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0Y4Q's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), 0Y4Q's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0Y4Q's dividends in 3 years are forecast to be well covered by earnings (21.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

John Haley (69yo)

4.17s

Tenure

US$4,991,828

Compensation

Mr. John J. Haley serves as Director at MAXIMUS, Inc. since March 17, 2020. Mr. Haley has been the Chief Executive Officer and Executive Director of Willis Towers Watson Public Limited Company since Januar ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.99M) is about average for companies of similar size in the UK market ($USD5.57M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Haley
CEO & Executive Director4.17yrsUS$4.99m0.092% $19.8m
Michael Burwell
Chief Financial Officer2.42yrsUS$3.91m0.0027% $579.0k
Gene Wickes
Head of Benefits Delivery & Administration3.92yrsUS$2.86m0.049% $10.5m
Chris Ford
Global Head of Investmentno datano datano data
Susan Davies
Principal Accounting Officer & Group Controller4yrsno datano data
Anne Bodnar
Head of Human Resources & Chief Administration Officer0.83yrno data0.023% $5.1m
Rich Keefe
Head of Financial Planning & Analysis and Investor Relations1.75yrsno datano data
Matthew Furman
General Counsel4.17yrsno data0.011% $2.4m
Ken Ross
Head of FINEX North America Business3yrsno datano data
Paul Holmes
Managing Director of Al Futtaim Willis Middle East9yrsno datano data

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 0Y4Q's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Haley
CEO & Executive Director4.17yrsUS$4.99m0.092% $19.8m
Rowan Douglas
Chairman of Willis Research Network & CEO of Capital Science & Policy Practice14.17yrsno datano data
Victor Ganzi
Independent Non-Executive Chairman1.17yrsUS$316.21k0.013% $2.8m
Brendan O'Neill
Independent Director4.17yrsUS$302.46k0.0092% $2.0m
Wendy Lane
Independent Director4.17yrsUS$317.72k0.0050% $1.1m
Wilhelm Zeller
Independent Director4.17yrsUS$310.16k0.0056% $1.2m
Anna Catalano
Independent Director4.17yrsUS$299.74k0.0037% $798.5k
James Vickers
Chairman of Willis Re International & Specialtyno datano datano data
Paddy Jago
Global Chairman of Willis Re & Chairman of Willis Re North America5.17yrsno datano data
Huichih Ko
Chairman of Willis Asia 5.5yrsno datano data

4.2yrs

Average Tenure

69.5yo

Average Age

Experienced Board: 0Y4Q's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Willis Towers Watson Public Limited Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Willis Towers Watson Public Limited Company
  • Ticker: 0Y4Q
  • Exchange: LSE
  • Founded: 1828
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$21.523b
  • Shares outstanding: 128.72m
  • Website: https://www.willistowerswatson.com

Number of Employees


Location

  • Willis Towers Watson Public Limited Company
  • 51 Lime Street
  • London
  • Greater London
  • EC3M 7DQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLTWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2001
WTYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2001
0Y4QLSE (London Stock Exchange)YesCommon StockGBUSDJun 2001
W1LT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:51
End of Day Share Price2020/03/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.