WILLIS TOWERS WATSON PLC (WTW) Fundamental Analysis & Valuation

NASDAQ:WTW • IE00BDB6Q211

Current stock price

295.015 USD
+3.54 (+1.22%)
Last:

This WTW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WTW Profitability Analysis

1.1 Basic Checks

  • WTW had positive earnings in the past year.
  • WTW had a positive operating cash flow in the past year.
  • Of the past 5 years WTW 4 years were profitable.
  • In the past 5 years WTW always reported a positive cash flow from operatings.
WTW Yearly Net Income VS EBIT VS OCF VS FCFWTW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • The Return On Assets of WTW (5.44%) is better than 81.08% of its industry peers.
  • WTW has a better Return On Equity (20.12%) than 85.81% of its industry peers.
  • The Return On Invested Capital of WTW (11.48%) is better than 93.92% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WTW is below the industry average of 15.41%.
  • The last Return On Invested Capital (11.48%) for WTW is above the 3 year average (10.47%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.44%
ROE 20.12%
ROIC 11.48%
ROA(3y)2.9%
ROA(5y)4.79%
ROE(3y)9.99%
ROE(5y)14.38%
ROIC(3y)10.47%
ROIC(5y)8.75%
WTW Yearly ROA, ROE, ROICWTW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 16.53%, WTW belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • WTW's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 23.25%, WTW is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
  • WTW's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.25%
PM (TTM) 16.53%
GM N/A
OM growth 3Y12.23%
OM growth 5Y15.06%
PM growth 3Y13.26%
PM growth 5Y7.42%
GM growth 3YN/A
GM growth 5YN/A
WTW Yearly Profit, Operating, Gross MarginsWTW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. WTW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WTW is still creating some value.
  • Compared to 1 year ago, WTW has less shares outstanding
  • WTW has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, WTW has a worse debt to assets ratio.
WTW Yearly Shares OutstandingWTW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
WTW Yearly Total Debt VS Total AssetsWTW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • WTW has an Altman-Z score of 1.45. This is a bad value and indicates that WTW is not financially healthy and even has some risk of bankruptcy.
  • WTW has a better Altman-Z score (1.45) than 86.49% of its industry peers.
  • WTW has a debt to FCF ratio of 4.08. This is a neutral value as WTW would need 4.08 years to pay back of all of its debts.
  • WTW's Debt to FCF ratio of 4.08 is on the low side compared to the rest of the industry. WTW is outperformed by 60.14% of its industry peers.
  • A Debt/Equity ratio of 0.72 indicates that WTW is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.72, WTW is doing worse than 84.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.08
Altman-Z 1.45
ROIC/WACC1.38
WACC8.3%
WTW Yearly LT Debt VS Equity VS FCFWTW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.20 indicates that WTW should not have too much problems paying its short term obligations.
  • WTW's Current ratio of 1.20 is amongst the best of the industry. WTW outperforms 83.78% of its industry peers.
  • WTW has a Quick Ratio of 1.20. This is a normal value and indicates that WTW is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of WTW (1.20) is better than 83.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
WTW Yearly Current Assets VS Current LiabilitesWTW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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4

3. WTW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.66% over the past year.
  • The Earnings Per Share has been growing slightly by 7.99% on average over the past years.
  • Looking at the last year, WTW shows a decrease in Revenue. The Revenue has decreased by -2.24% in the last year.
  • Measured over the past years, WTW shows a small growth in Revenue. The Revenue has been growing by 2.42% on average per year.
EPS 1Y (TTM)1.66%
EPS 3Y8.34%
EPS 5Y7.99%
EPS Q2Q%-0.12%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y3.07%
Revenue growth 5Y2.42%
Sales Q2Q%-3.26%

3.2 Future

  • WTW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.40% yearly.
  • The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y15.61%
EPS Next 2Y14.85%
EPS Next 3Y14.4%
EPS Next 5YN/A
Revenue Next Year9.11%
Revenue Next 2Y7.56%
Revenue Next 3Y7.19%
Revenue Next 5Y4.51%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WTW Yearly Revenue VS EstimatesWTW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
WTW Yearly EPS VS EstimatesWTW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20 25

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3

4. WTW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.17, the valuation of WTW can be described as rather expensive.
  • 69.59% of the companies in the same industry are cheaper than WTW, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of WTW to the average of the S&P500 Index (25.96), we can say WTW is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 14.85, which indicates a correct valuation of WTW.
  • Based on the Price/Forward Earnings ratio, WTW is valued a bit more expensive than 62.84% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. WTW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.17
Fwd PE 14.85
WTW Price Earnings VS Forward Price EarningsWTW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • WTW's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, WTW is valued a bit more expensive than the industry average as 64.86% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 18.04
EV/EBITDA 11.46
WTW Per share dataWTW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80 100

4.3 Compensation for Growth

  • WTW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • WTW has a very decent profitability rating, which may justify a higher PE ratio.
  • WTW's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)2.15
EPS Next 2Y14.85%
EPS Next 3Y14.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. WTW Dividend Analysis

5.1 Amount

  • WTW has a Yearly Dividend Yield of 1.11%.
  • WTW's Dividend Yield is slightly below the industry average, which is at 2.94.
  • With a Dividend Yield of 1.11, WTW pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.11%

5.2 History

  • On average, the dividend of WTW grows each year by 6.46%, which is quite nice.
  • WTW has been paying a dividend for at least 10 years, so it has 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)6.46%
Div Incr Years8
Div Non Decr Years8
WTW Yearly Dividends per shareWTW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • WTW pays out 22.31% of its income as dividend. This is a sustainable payout ratio.
  • WTW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.31%
EPS Next 2Y14.85%
EPS Next 3Y14.4%
WTW Yearly Income VS Free CF VS DividendWTW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B
WTW Dividend Payout.WTW Dividend Payout, showing the Payout Ratio.WTW Dividend Payout.PayoutRetained Earnings

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WTW Fundamentals: All Metrics, Ratios and Statistics

WILLIS TOWERS WATSON PLC

NASDAQ:WTW (3/17/2026, 11:03:39 AM)

295.015

+3.54 (+1.22%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)04-22
Inst Owners101.85%
Inst Owner Change346868%
Ins Owners0.4%
Ins Owner Change11.51%
Market Cap27.89B
Revenue(TTM)9.71B
Net Income(TTM)1.60B
Analysts75.56
Price Target377.18 (27.85%)
Short Float %1.94%
Short Ratio2.19
Dividend
Industry RankSector Rank
Dividend Yield 1.11%
Yearly Dividend3.67
Dividend Growth(5Y)6.46%
DP22.31%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.41%
Min EPS beat(2)-0.42%
Max EPS beat(2)1.24%
EPS beat(4)2
Avg EPS beat(4)1.72%
Min EPS beat(4)-2.96%
Max EPS beat(4)9.03%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)8
Avg EPS beat(12)1.85%
EPS beat(16)12
Avg EPS beat(16)2%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.15%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)5
Avg Revenue beat(16)-1.07%
PT rev (1m)0.84%
PT rev (3m)1.59%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)1.76%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.85%
Valuation
Industry RankSector Rank
PE 17.17
Fwd PE 14.85
P/S 2.87
P/FCF 18.04
P/OCF 15.71
P/B 3.5
P/tB N/A
EV/EBITDA 11.46
EPS(TTM)17.18
EY5.82%
EPS(NY)19.86
Fwd EY6.73%
FCF(TTM)16.35
FCFY5.54%
OCF(TTM)18.77
OCFY6.36%
SpS102.68
BVpS84.36
TBVpS-22.24
PEG (NY)1.1
PEG (5Y)2.15
Graham Number180.58
Profitability
Industry RankSector Rank
ROA 5.44%
ROE 20.12%
ROCE 14.54%
ROIC 11.48%
ROICexc 14.42%
ROICexgc 78.13%
OM 23.25%
PM (TTM) 16.53%
GM N/A
FCFM 15.93%
ROA(3y)2.9%
ROA(5y)4.79%
ROE(3y)9.99%
ROE(5y)14.38%
ROIC(3y)10.47%
ROIC(5y)8.75%
ROICexc(3y)12.26%
ROICexc(5y)10.27%
ROICexgc(3y)61.18%
ROICexgc(5y)51.69%
ROCE(3y)13.26%
ROCE(5y)11.07%
ROICexgc growth 3Y30.58%
ROICexgc growth 5Y23.32%
ROICexc growth 3Y25.35%
ROICexc growth 5Y25.76%
OM growth 3Y12.23%
OM growth 5Y15.06%
PM growth 3Y13.26%
PM growth 5Y7.42%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.08
Debt/EBITDA 2.15
Cap/Depr 54.78%
Cap/Sales 2.36%
Interest Coverage 8.96
Cash Conversion 66.36%
Profit Quality 96.32%
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 1.45
F-Score7
WACC8.3%
ROIC/WACC1.38
Cap/Depr(3y)52.14%
Cap/Depr(5y)44.67%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.66%
EPS 3Y8.34%
EPS 5Y7.99%
EPS Q2Q%-0.12%
EPS Next Y15.61%
EPS Next 2Y14.85%
EPS Next 3Y14.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y3.07%
Revenue growth 5Y2.42%
Sales Q2Q%-3.26%
Revenue Next Year9.11%
Revenue Next 2Y7.56%
Revenue Next 3Y7.19%
Revenue Next 5Y4.51%
EBIT growth 1Y5.52%
EBIT growth 3Y15.68%
EBIT growth 5Y17.85%
EBIT Next Year22.84%
EBIT Next 3Y13.24%
EBIT Next 5YN/A
FCF growth 1Y22.02%
FCF growth 3Y36.49%
FCF growth 5Y0.77%
OCF growth 1Y17.39%
OCF growth 3Y29.78%
OCF growth 5Y0.01%

WILLIS TOWERS WATSON PLC / WTW Fundamental Analysis 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 3 / 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 15.61% in the next year.


Is the dividend of WILLIS TOWERS WATSON PLC sustainable?

The dividend rating of WILLIS TOWERS WATSON PLC (WTW) is 5 / 10 and the dividend payout ratio is 22.31%.