WLTW

Willis Towers WatsonNasdaqGS:WLTW Stock Report

Market Cap

US$29.7b

7D

-2.7%

1Y

12.2%

Updated

18 Sep, 2021

Data

Company Financials +
WLTW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends4/6

WLTW Overview

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

Willis Towers Watson Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Willis Towers Watson
Historical stock prices
Current Share PriceUS$230.28
52 Week HighUS$179.31
52 Week LowUS$271.87
Beta0.80
1 Month Change7.45%
3 Month Change2.26%
1 Year Change12.16%
3 Year Change55.09%
5 Year Change79.78%
Change since IPO423.68%

Recent News & Updates

Sep 10

Willis Towers Watson: Investor Day Reinforces The Thesis Why This Is A Potential Double

Company introduced the new CEO. Company laid out a 3-year plan for earnings and free cash flow. Just leaving the multiple constant can result in a double if 2024 are hit. $4 billion of buybacks for FY 2021-2022 equals 13% of current market cap.

Aug 03

Willis Tower Watson: Solid Quarter And Potential Revival Of Reinsurance Deal

Earnings of $2.66 beat consensus est's of $1.98. Organic revenue up 8%, 4% in constant currency. 3 out of 4 business lines grew revenue mid to high single digits. Deal to sell reinsurance practice to Arthur Gallagher rumored to be back on. Raised dividend to $.80.

Jul 27

Willis Towers Watson: Busted Merger Creates Excellent Buying Opportunity

Deal with Aon abandoned after it's clear it would not be approved by the US Department of Justice. Willis sinks 10% on the news as remaining arbitrageurs bow out. $1 billion break up fee to be paid to Willis. Willis adds $1 billion to existing $500 million repurchase authorization.

Jun 17

AON likely to offer more divestitures to get DOJ approval for Willis Towers, analyst says

JL Images/iStock Editorial via Getty Images AON (AON) is likely to offer more divestitures to get U.S. antitrust approval for the Willis Towers (WLTW) deal after the DOJ sued to block the deal yesterday, according to Citi. Citi said the firm spoke to AON last night and they are working as fast as possible to figure our what's best for shareholders, according to analyst Suneet Kamath. A "long-drawn" out litigation is likely not good for holders, while a delay of a

Shareholder Returns

WLTWUS InsuranceUS Market
7D-2.7%-0.7%-0.6%
1Y12.2%35.9%33.8%

Return vs Industry: WLTW underperformed the US Insurance industry which returned 35.9% over the past year.

Return vs Market: WLTW underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is WLTW's price volatile compared to industry and market?
WLTW volatility
WLTW Beta0.80
Industry Beta0.97
Market Beta1

Stable Share Price: WLTW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WLTW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
182846,000John Haleyhttps://www.willistowerswatson.com

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.

Valuation

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

5.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WLTW ($230.28) is trading below our estimate of fair value ($243.64)

Significantly Below Fair Value: WLTW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WLTW is poor value based on its PE Ratio (19.6x) compared to the US Insurance industry average (9.5x).

PE vs Market: WLTW is poor value based on its PE Ratio (19.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WLTW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WLTW is overvalued based on its PB Ratio (2.5x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Willis Towers Watson forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLTW's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: WLTW's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: WLTW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WLTW's revenue (3.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WLTW's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLTW's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

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

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLTW has high quality earnings.

Growing Profit Margin: WLTW's current net profit margins (15.7%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: WLTW's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: WLTW's earnings growth over the past year (48.7%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: WLTW earnings growth over the past year (48.7%) underperformed the Insurance industry 76%.


Return on Equity

High ROE: WLTW's Return on Equity (13%) is considered low.


Financial Health

How is Willis Towers Watson's financial position?


Financial Position Analysis

Short Term Liabilities: WLTW's short term assets ($20.6B) exceed its short term liabilities ($19.2B).

Long Term Liabilities: WLTW's short term assets ($20.6B) exceed its long term liabilities ($7.4B).


Debt to Equity History and Analysis

Debt Level: WLTW's debt to equity ratio (43.6%) is considered high.

Reducing Debt: WLTW's debt to equity ratio has increased from 33.4% to 43.6% over the past 5 years.

Debt Coverage: WLTW's debt is well covered by operating cash flow (28.5%).

Interest Coverage: WLTW's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Dividend

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

1.39%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 15 202116 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WLTW's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: WLTW's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

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

Growing Dividend: WLTW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.2%), WLTW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WLTW's dividends in 3 years are forecast to be well covered by earnings (21.8% 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 (71 yo)

5.67yrs

Tenure

US$20,732,005

Compensation

Mr. John J. Haley has been a Director at MAXIMUS, Inc. since March 17, 2020 and serves as its Chairman since September 2021. Mr. Haley has been the Chief Executive Officer and Executive Director of Willis...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD20.73M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

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


Board Members

Experienced Board: WLTW's board of directors are considered experienced (5.7 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 employee growth, exchange listings and data sources


Key Information

  • Name: Willis Towers Watson Public Limited Company
  • Ticker: WLTW
  • Exchange: NasdaqGS
  • Founded: 1828
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$29.716b
  • Shares outstanding: 129.04m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:10
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.