NasdaqGS:WLTW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with solid track record.


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


Market Performance


7 Day Return

-1.5%

NasdaqGS:WLTW

0.6%

US Insurance

1.2%

US Market


1 Year Return

32.5%

NasdaqGS:WLTW

9.3%

US Insurance

1.7%

US Market

WLTW outperformed the Insurance industry which returned 9.3% over the past year.

WLTW outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

WLTWIndustryMarket
7 Day-1.5%0.6%1.2%
30 Day0.08%3.1%4.9%
90 Day3.4%1.3%3.7%
1 Year34.6%32.5%11.9%9.3%3.9%1.7%
3 Year64.4%57.1%48.0%36.7%47.2%37.7%
5 Year89.8%72.5%68.3%48.2%60.0%42.4%

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

Valuation

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

29.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Willis Towers Watson's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Willis Towers Watson's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Willis Towers Watson is overvalued based on earnings compared to the US Insurance industry average.

Willis Towers Watson is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Willis Towers Watson is poor value based on expected growth next year.


Price Based on Value of Assets

Willis Towers Watson is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Willis Towers Watson expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Willis Towers Watson's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Willis Towers Watson's earnings are expected to grow by 16.8% yearly, however this is not considered high growth (20% yearly).

Willis Towers Watson's revenue growth is positive but not above the United States of America market average.

Willis Towers Watson's earnings growth is expected to exceed the United States of America market average.

Willis Towers Watson's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Willis Towers Watson is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

16.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (82.5% vs 16.9%)

Willis Towers Watson's earnings growth has exceeded the US Insurance industry average in the past year (82.5% vs 3.1%).


Return on Equity

Willis Towers Watson has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Willis Towers Watson used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Willis Towers Watson has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Willis Towers Watson's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Willis Towers Watson's level of debt (43.7%) 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 (91.7% vs 43.7% today).

Debt is well covered by operating cash flow (26.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.1x debt.


Next Steps

Dividend

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

1.35%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Willis Towers Watson before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Willis Towers Watson's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Willis Towers Watson's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

John Haley (69yo)

3.7yrs

Tenure

US$4,991,828

Compensation

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 Office ...


CEO Compensation Analysis

John's remuneration is lower than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

58.5yo

Average Age

The tenure for the Willis Towers Watson management team is about average.


Board Age and Tenure

3.7yrs

Average Tenure

69.5yo

Average Age

The tenure for the Willis Towers Watson board of directors is about average.


Insider Trading

Willis Towers Watson individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,480,44026 Aug 19
Nicolas Aubert
EntityIndividual
Shares7,592
Max PriceUS$195.00
SellUS$200,18903 May 19
Anna Catalano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,110
Max PriceUS$180.35
SellUS$603,91514 Feb 19
Adam Garrard
EntityIndividual
Shares3,517.07
Max PriceUS$171.71
SellUS$1,601,52513 Nov 18
Julie Gebauer
EntityIndividual
Shares10,000
Max PriceUS$160.15
SellUS$438,66108 Nov 18
Adam Garrard
EntityIndividual
Shares2,850
Max PriceUS$153.92

Ownership Breakdown


Management Team

  • John Haley (69yo)

    CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: US$4.99m
  • Gene Wickes (67yo)

    Head of Benefits Delivery & Administration

    • Tenure: 3.4yrs
    • Compensation: US$2.86m
  • Ken Ross

    Head of FINEX North America Business

    • Tenure: 2.6yrs
  • Paul Holmes

    Managing Director of Al Futtaim Willis Middle East

    • Tenure: 8.6yrs
  • Mike Burwell (55yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$3.91m
  • Matt Furman (49yo)

    General Counsel

    • Tenure: 3.7yrs
  • Anne Bodnar (62yo)

    Chief Human Resources Officer & Chief Administration Officer

    • Tenure: 0.3yrs
  • Susan Davies (50yo)

    Principal Accounting Officer & Group Controller

    • Tenure: 3.6yrs
  • Chris Ford

    Global Head of Investment

    • Tenure: 0yrs
  • Rich Keefe

    Head of Financial Planning & Analysis and Investor Relations

    • Tenure: 1.3yrs

Board Members

  • Victor Ganzi (72yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$316.21k
  • Brendan O'Neill (70yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$302.46k
  • John Haley (69yo)

    CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: US$4.99m
  • Wendy Lane (68yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$317.72k
  • Wilhelm Zeller (75yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$310.16k
  • Anna Catalano (60yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$299.74k
  • James Vickers

    Chairman of Willis Re International & Specialty

    • Tenure: 0yrs
  • Paddy Jago

    Global Chairman of Willis Re & Chairman of Willis Re North America

    • Tenure: 4.7yrs
  • Rowan Douglas

    Chairman of Willis Research Network & CEO of Capital Science & Policy Practice

    • Tenure: 13.7yrs
  • Huichih Ko

    Chairman of Willis Asia

    • Tenure: 5yrs

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: WLTW
  • Exchange: NasdaqGS
  • Founded: 1828
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$25.115b
  • Shares outstanding: 128.99m
  • 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

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 ad ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:25
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.