NasdaqGS:WLTW

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven 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

Stable Share Price: WLTW is less volatile than 75% 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.


Market Performance


7 Day Return

5.1%

WLTW

1.5%

US Insurance

2.8%

US Market


1 Year Return

6.7%

WLTW

-5.8%

US Insurance

20.9%

US Market

Return vs Industry: WLTW exceeded the US Insurance industry which returned -5.8% over the past year.

Return vs Market: WLTW underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

WLTWIndustryMarket
7 Day5.1%1.5%2.8%
30 Day14.8%14.2%11.1%
90 Day2.0%9.5%6.5%
1 Year8.2%6.7%-3.2%-5.8%23.6%20.9%
3 Year35.2%29.4%9.5%1.5%47.3%37.6%
5 Year81.9%69.4%46.7%28.4%94.3%72.9%

Long-Term 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 compared to its fair value and its price relative to the market?

25.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WLTW ($209.55) is trading above our estimate of fair value ($168.13)

Significantly Below Fair Value: WLTW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WLTW is poor value based on its PE Ratio (25.6x) compared to the US Insurance industry average (14.3x).

PE vs Market: WLTW is poor value based on its PE Ratio (25.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: WLTW is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: WLTW is overvalued based on its PB Ratio (2.6x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLTW's forecast earnings growth (11.5% per year) is above the savings rate (2.2%).

Earnings vs Market: WLTW's earnings (11.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: WLTW's revenue (5.2% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: WLTW's revenue (5.2% 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 (14.3%).


Next Steps

Past Performance

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

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLTW has high quality earnings.

Growing Profit Margin: WLTW's current net profit margins (11.5%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: WLTW's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: WLTW's earnings growth over the past year (20.9%) is below its 5-year average (23.9% per year).

Earnings vs Industry: WLTW earnings growth over the past year (20.9%) exceeded the Insurance industry 6%.


Return on Equity

High ROE: WLTW's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Willis Towers Watson's financial position?


Financial Position Analysis

Short Term Liabilities: WLTW's short term assets ($19.9B) exceed its short term liabilities ($19.2B).

Long Term Liabilities: WLTW's short term assets ($19.9B) exceed its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: WLTW's debt to equity ratio (52.9%) is considered high.

Reducing Debt: WLTW's debt to equity ratio has reduced from 99.7% to 52.9% over the past 5 years.

Debt Coverage: WLTW's debt is well covered by operating cash flow (29.7%).

Interest Coverage: WLTW's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WLTW's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WLTW's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.3%), WLTW's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WLTW's dividends in 3 years are forecast to be well covered by earnings (19.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

John Haley (70 yo)

4.83yrs

Tenure

US$18,691,731

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 ($USD18.69M) is above average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Haley
CEO & Executive Director4.83yrsUS$18.69m0.097%
$ 26.2m
Michael Burwell
Chief Financial Officer3.08yrsUS$4.36m0.012%
$ 3.2m
Carl Hess
Head of Investment4.08yrsUS$3.55m0.031%
$ 8.4m
Gene Wickes
Head of Benefits Delivery & Administration4.58yrsUS$3.48m0.055%
$ 14.8m
Joseph Gunn
Head of North America4.08yrsUS$3.06m0.016%
$ 4.3m
Chris Ford
Global Head of Investmentno datano datano data
Susan Davies
Principal Accounting Officer & Group Controller4.67yrsno datano data
Anne Bodnar
Head of Human Resources & Chief Administration Officer1.5yrsno data0.028%
$ 7.6m
Rich Keefe
Head of Financial Planning & Analysis and Investor Relations2.42yrsno datano data
Matthew Furman
General Counsel4.83yrsno data0.015%
$ 4.1m
Ken Ross
Head of FINEX North America Business3.67yrsno datano data
Paul Holmes
Managing Director of Al Futtaim Willis Middle East9.67yrsno datano data

4.1yrs

Average Tenure

57yo

Average Age

Experienced Management: WLTW's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Haley
CEO & Executive Director4.83yrsUS$18.69m0.097%
$ 26.2m
Victor Ganzi
Independent Non-Executive Chairman1.83yrsUS$466.76k0.015%
$ 4.0m
Jaymin Patel
Independent Director4.83yrsUS$313.09k0.0036%
$ 983.2k
Brendan O'Neill
Independent Director4.83yrsUS$323.07k0.0095%
$ 2.6m
Wendy Lane
Independent Director4.83yrsUS$320.75k0.0054%
$ 1.5m
Paul Thomas
Independent Director4.83yrsUS$312.30k0.0079%
$ 2.1m
Linda Rabbitt
Independent Director4.83yrsUS$309.75k0.010%
$ 2.7m
Wilhelm Zeller
Independent Director4.83yrsUS$323.30k0.0060%
$ 1.6m
Anna Catalano
Independent Director4.83yrsUS$312.30k0.0041%
$ 1.1m
James Vickers
Chairman of Willis Re International & Specialtyno datano datano data
Paddy Jago
Global Chairman of Willis Re & Chairman of Willis Re North America5.83yrsno datano data
Huichih Ko
Chairman of Willis Asia 6.17yrsno datano data

4.8yrs

Average Tenure

70yo

Average Age

Experienced Board: WLTW's board of directors are considered experienced (4.8 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: WLTW
  • Exchange: NasdaqGS
  • Founded: 1828
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$27.012b
  • Shares outstanding: 128.91m
  • 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 ad...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 00:20
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.