322.81 USD
+0.34 (+0.11%)
322.81 USD
0 (0%)
WTW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. While WTW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WTW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WTW had positive earnings in the past year.
- In the past year WTW had a positive cash flow from operations.
- WTW had positive earnings in 4 of the past 5 years.
- In the past 5 years WTW always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 7.71%, WTW belongs to the best of the industry, outperforming 93.29% of the companies in the same industry.
- WTW has a better Return On Equity (27.36%) than 93.96% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.62%, WTW belongs to the top of the industry, outperforming 94.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WTW is significantly below the industry average of 14.92%.
- The 3 year average ROIC (8.90%) for WTW is below the current ROIC(12.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 27.36% | ||
| ROIC | 12.62% |
ROA(3y)2.15%
ROA(5y)4.22%
ROE(3y)6.64%
ROE(5y)12.19%
ROIC(3y)8.9%
ROIC(5y)7.27%
1.3 Margins
- WTW's Profit Margin of 21.58% is amongst the best of the industry. WTW outperforms 91.95% of its industry peers.
- WTW has a better Operating Margin (23.13%) than 80.54% of its industry peers.
- In the last couple of years the Operating Margin of WTW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.13% | ||
| PM (TTM) | 21.58% | ||
| GM | N/A |
OM growth 3Y10.88%
OM growth 5Y11.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTW is creating some value.
- The number of shares outstanding for WTW has been reduced compared to 1 year ago.
- WTW has less shares outstanding than it did 5 years ago.
- WTW has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.60, we must say that WTW is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of WTW (1.60) is better than 85.91% of its industry peers.
- The Debt to FCF ratio of WTW is 3.85, which is a good value as it means it would take WTW, 3.85 years of fcf income to pay off all of its debts.
- WTW has a Debt to FCF ratio of 3.85. This is comparable to the rest of the industry: WTW outperforms 43.62% of its industry peers.
- WTW has a Debt/Equity ratio of 0.62. This is a neutral value indicating WTW is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, WTW is not doing good in the industry: 76.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.48
WACC8.5%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that WTW should not have too much problems paying its short term obligations.
- WTW has a Current ratio of 1.10. This is amongst the best in the industry. WTW outperforms 80.54% of its industry peers.
- WTW has a Quick Ratio of 1.10. This is a normal value and indicates that WTW is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.10, WTW belongs to the top of the industry, outperforming 80.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.05% over the past year.
- WTW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.03% yearly.
- The Revenue has decreased by -0.02% in the past year.
- WTW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.48% yearly.
EPS 1Y (TTM)6.05%
EPS 3Y7.25%
EPS 5Y9.03%
EPS Q2Q%4.78%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y3.34%
Revenue growth 5Y3.48%
Sales Q2Q%-0.04%
3.2 Future
- Based on estimates for the next years, WTW will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.39% on average per year.
- The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y1.39%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
EPS Next 5Y9.39%
Revenue Next Year-2.84%
Revenue Next 2Y1.88%
Revenue Next 3Y3.26%
Revenue Next 5Y2.99%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.78, the valuation of WTW can be described as rather expensive.
- 65.77% of the companies in the same industry are cheaper than WTW, based on the Price/Earnings ratio.
- WTW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 16.55, WTW is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WTW indicates a slightly more expensive valuation: WTW is more expensive than 62.42% of the companies listed in the same industry.
- WTW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTW.
- Based on the Price/Free Cash Flow ratio, WTW is valued a bit more expensive than 65.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTW does not grow enough to justify the current Price/Earnings ratio.
- WTW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)13.51
PEG (5Y)2.08
EPS Next 2Y7.45%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.11%, WTW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.53, WTW has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, WTW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- On average, the dividend of WTW grows each year by 6.49%, which is quite nice.
- WTW has paid a dividend for at least 10 years, which is a reliable track record.
- As WTW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.49%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- WTW pays out 16.92% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.92%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
WILLIS TOWERS WATSON PLC / WTW FAQ
Can you provide the ChartMill fundamental rating for WILLIS TOWERS WATSON PLC?
ChartMill assigns a fundamental rating of 5 / 10 to WTW.
What is the valuation status for WTW stock?
ChartMill assigns a valuation rating of 2 / 10 to WILLIS TOWERS WATSON PLC (WTW). This can be considered as Overvalued.
Can you provide the profitability details for WILLIS TOWERS WATSON PLC?
WILLIS TOWERS WATSON PLC (WTW) has a profitability rating of 7 / 10.
What is the expected EPS growth for WILLIS TOWERS WATSON PLC (WTW) stock?
The Earnings per Share (EPS) of WILLIS TOWERS WATSON PLC (WTW) is expected to grow by 1.39% in the next year.
Is the dividend of WILLIS TOWERS WATSON PLC sustainable?
The dividend rating of WILLIS TOWERS WATSON PLC (WTW) is 6 / 10 and the dividend payout ratio is 16.92%.