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WTW

Willis Towers Watson NasdaqGS:WTW Stock Report

Last Price

US$204.25

Market Cap

US$22.9b

7D

-1.7%

1Y

-23.2%

Updated

16 May, 2022

Data

Company Financials +
WTW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

WTW Stock 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$204.25
52 Week HighUS$268.19
52 Week LowUS$197.30
Beta0.80
1 Month Change-12.77%
3 Month Change-8.06%
1 Year Change-23.21%
3 Year Change15.81%
5 Year Change45.19%
Change since IPO364.49%

Recent News & Updates

May 04
Here's Why I Think Willis Towers Watson (NASDAQ:WTW) Is An Interesting Stock

Here's Why I Think Willis Towers Watson (NASDAQ:WTW) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

WTWUS InsuranceUS Market
7D-1.7%-0.07%0.7%
1Y-23.2%0.6%-10.8%

Return vs Industry: WTW underperformed the US Insurance industry which returned 0.3% over the past year.

Return vs Market: WTW underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is WTW's price volatile compared to industry and market?
WTW volatility
WTW Average Weekly Movement4.0%
Insurance Industry Average Movement5.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: WTW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
182844,000Carl Hesshttps://www.willistowerswatson.com

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments, Health, Wealth and Career; and and Risk and Broking. The company 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.

Willis Towers Watson Fundamentals Summary

How do Willis Towers Watson's earnings and revenue compare to its market cap?
WTW fundamental statistics
Market CapUS$22.95b
Earnings (TTM)US$1.71b
Revenue (TTM)US$8.93b

13.3x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTW income statement (TTM)
RevenueUS$8.93b
Cost of RevenueUS$4.85b
Gross ProfitUS$4.08b
Other ExpensesUS$2.37b
EarningsUS$1.71b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)15.34
Gross Margin45.64%
Net Profit Margin19.15%
Debt/Equity Ratio41.3%

How did WTW perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

18%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


30.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WTW ($204.25) is trading below our estimate of fair value ($292.76)

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


Price To Earnings Ratio

PE vs Industry: WTW is poor value based on its PE Ratio (13.3x) compared to the US Insurance industry average (11.2x).

PE vs Market: WTW is good value based on its PE Ratio (13.3x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WTW is overvalued based on its PB Ratio (2.1x) compared to the US Insurance industry average (1x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTW's forecast earnings growth (6.1% per year) is above the savings rate (1.9%).

Earnings vs Market: WTW's earnings (6.1% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: WTW's revenue (5.3% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: WTW's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTW's Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WTW has a large one-off gain of $744.0M impacting its March 31 2022 financial results.

Growing Profit Margin: WTW's current net profit margins (19.1%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: WTW's earnings have grown significantly by 30% per year over the past 5 years.

Accelerating Growth: WTW's earnings growth over the past year (75.2%) exceeds its 5-year average (30% per year).

Earnings vs Industry: WTW earnings growth over the past year (75.2%) exceeded the Insurance industry -2.6%.


Return on Equity

High ROE: WTW's Return on Equity (15.6%) is considered low.


Financial Health

How is Willis Towers Watson's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WTW's short term assets ($16.4B) exceed its short term liabilities ($14.9B).

Long Term Liabilities: WTW's short term assets ($16.4B) exceed its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: WTW's net debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: WTW's debt to equity ratio has increased from 38.8% to 41.3% over the past 5 years.

Debt Coverage: WTW's debt is well covered by operating cash flow (48.3%).

Interest Coverage: WTW's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WTW's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: WTW's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.7%), WTW's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.2%), WTW's dividend payments are well covered by cash flows.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Carl Hess (59 yo)

0.33

Tenure

US$4,828,485

Compensation

Mr. Carl A. Hess has been Chief Executive Officer and Director of Willis Towers Watson Public Limited Company since January 1, 2022. He serves as Director at Willis North America Inc since January 10, 2022...


CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD4.83M) is below average for companies of similar size in the US market ($USD13.26M).

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


Leadership Team

Experienced Management: WTW's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: WTW's board of directors are considered experienced (6.3 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: WTW
  • Exchange: NasdaqGS
  • Founded: 1828
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: US$22.948b
  • Shares outstanding: 111.49m
  • 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 Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.