WILLIS TOWERS WATSON PLC (WTW) Fundamental Analysis & Valuation

NASDAQ:WTW • IE00BDB6Q211

Current stock price

289.51 USD
-3.85 (-1.31%)
At close:
289.51 USD
0 (0%)
After Hours:

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.
  • In the past year WTW had a positive cash flow from operations.
  • WTW had positive earnings in 4 of the past 5 years.
  • WTW had a positive operating cash flow in each of the past 5 years.
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 79.05% of its industry peers.
  • The Return On Equity of WTW (20.12%) is better than 84.46% of its industry peers.
  • WTW has a Return On Invested Capital of 11.48%. This is amongst the best in the industry. WTW outperforms 92.57% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WTW is in line with the industry average of 9.34%.
  • 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

  • WTW has a better Profit Margin (16.53%) than 80.41% of its industry peers.
  • WTW's Profit Margin has improved in the last couple of years.
  • The Operating Margin of WTW (23.25%) is better than 79.73% of its industry peers.
  • In the last couple of years the Operating Margin of WTW has grown nicely.
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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5

2. WTW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTW is creating some value.
  • Compared to 1 year ago, WTW has less shares outstanding
  • The number of shares outstanding for WTW has been reduced compared to 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

  • Based on the Altman-Z score of 1.46, we must say that WTW is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WTW (1.46) is better than 85.14% of its industry peers.
  • The Debt to FCF ratio of WTW is 4.08, which is a neutral value as it means it would take WTW, 4.08 years of fcf income to pay off all of its debts.
  • WTW has a worse Debt to FCF ratio (4.08) than 63.51% of its industry peers.
  • WTW has a Debt/Equity ratio of 0.72. This is a neutral value indicating 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 85.81% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.08
Altman-Z 1.46
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

  • WTW has a Current 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.
  • Looking at the Current ratio, with a value of 1.20, WTW belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
  • A Quick Ratio of 1.20 indicates that WTW should not have too much problems paying its short term obligations.
  • With an excellent Quick ratio value of 1.20, WTW belongs to the best of the industry, outperforming 85.14% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • WTW shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
  • 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

  • The Earnings Per Share is expected to grow by 14.40% on average over the next years. This is quite good.
  • Based on estimates for the next years, WTW will show a small growth in Revenue. The Revenue will grow by 4.51% on average per year.
EPS Next Y15.61%
EPS Next 2Y14.85%
EPS Next 3Y14.4%
EPS Next 5YN/A
Revenue Next Year9.23%
Revenue Next 2Y7.61%
Revenue Next 3Y7.19%
Revenue Next 5Y4.51%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

  • With a Price/Earnings ratio of 16.85, WTW is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of WTW indicates a slightly more expensive valuation: WTW is more expensive than 72.97% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, WTW is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 14.58, which indicates a correct valuation of WTW.
  • Based on the Price/Forward Earnings ratio, WTW is valued a bit more expensive than 64.86% of the companies in the same industry.
  • WTW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.85
Fwd PE 14.58
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTW.
  • WTW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WTW is more expensive than 66.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.71
EV/EBITDA 11.53
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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of WTW may justify a higher PE ratio.
  • A more expensive valuation may be justified as WTW's earnings are expected to grow with 14.40% in the coming years.
PEG (NY)1.08
PEG (5Y)2.11
EPS Next 2Y14.85%
EPS Next 3Y14.4%

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

6

5. WTW Dividend Analysis

5.1 Amount

  • WTW has a Yearly Dividend Yield of 1.11%.
  • Compared to an average industry Dividend Yield of 2.84, WTW has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, WTW's dividend is way lower than the S&P500 average.
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 paid a dividend for at least 10 years, which is a reliable track record.
  • WTW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (3/25/2026, 8:04:02 PM)

After market: 289.51 0 (0%)

289.51

-3.85 (-1.31%)

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 Cap27.37B
Revenue(TTM)9.71B
Net Income(TTM)1.60B
Analysts75.56
Price Target377.18 (30.28%)
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)-0.38%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)1.76%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.94%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.96%
Valuation
Industry RankSector Rank
PE 16.85
Fwd PE 14.58
P/S 2.82
P/FCF 17.71
P/OCF 15.42
P/B 3.43
P/tB N/A
EV/EBITDA 11.53
EPS(TTM)17.18
EY5.93%
EPS(NY)19.86
Fwd EY6.86%
FCF(TTM)16.35
FCFY5.65%
OCF(TTM)18.77
OCFY6.48%
SpS102.68
BVpS84.36
TBVpS-22.24
PEG (NY)1.08
PEG (5Y)2.11
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 1.46
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 Year9.23%
Revenue Next 2Y7.61%
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 6 / 10 and the dividend payout ratio is 22.31%.