WILLIS TOWERS WATSON PLC (WTW) Fundamental Analysis & Valuation

NASDAQ:WTW • IE00BDB6Q211

Current stock price

256.34 USD
+0.14 (+0.05%)
At close:
256.34 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.
  • 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

  • With a decent Return On Assets value of 5.44%, WTW is doing good in the industry, outperforming 78.91% of the companies in the same industry.
  • With an excellent Return On Equity value of 20.12%, WTW belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
  • WTW has a Return On Invested Capital of 11.48%. This is amongst the best in the industry. WTW outperforms 92.52% 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 9.60%.
  • The 3 year average ROIC (10.47%) for WTW is below the current ROIC(11.48%), indicating increased profibility in the last year.
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 Profit Margin of 16.53%. This is in the better half of the industry: WTW outperforms 77.55% of its industry peers.
  • In the last couple of years the Profit Margin of WTW has grown nicely.
  • Looking at the Operating Margin, with a value of 23.25%, WTW belongs to the top of the industry, outperforming 80.27% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • WTW has less shares outstanding than it did 1 year ago.
  • WTW has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for WTW is higher compared to a year ago.
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 1.36, we must say that WTW is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WTW (1.36) is better than 82.99% 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.
  • The Debt to FCF ratio of WTW (4.08) is worse than 62.59% 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 85.03% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.08
Altman-Z 1.36
ROIC/WACC1.4
WACC8.18%
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.
  • WTW has a Current ratio of 1.20. This is amongst the best in the industry. WTW outperforms 85.03% 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.
  • WTW has a Quick ratio of 1.20. This is amongst the best in the industry. WTW outperforms 85.03% 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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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 6.15% over the past year.
  • WTW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.99% yearly.
  • WTW shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
  • WTW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
EPS 1Y (TTM)6.15%
EPS 3Y8.34%
EPS 5Y7.99%
EPS Q2Q%18.85%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y3.07%
Revenue growth 5Y2.42%
Sales Q2Q%8.5%

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 14.42% on average per year.
  • The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y15.74%
EPS Next 2Y14.89%
EPS Next 3Y14.42%
EPS Next 5YN/A
Revenue Next Year9.12%
Revenue Next 2Y7.54%
Revenue Next 3Y7.01%
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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4

4. WTW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.43, which indicates a correct valuation of WTW.
  • Based on the Price/Earnings ratio, WTW is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
  • The average S&P500 Price/Earnings ratio is at 26.64. WTW is valued slightly cheaper when compared to this.
  • WTW is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WTW.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. WTW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.43
Fwd PE 11.3
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WTW indicates a slightly more expensive valuation: WTW is more expensive than 63.27% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.62
EV/EBITDA 10.18
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of WTW may justify a higher PE ratio.
  • WTW's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.81
EPS Next 2Y14.89%
EPS Next 3Y14.42%

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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 1.31%. Purely for dividend investing, there may be better candidates out there.
  • WTW's Dividend Yield is comparable with the industry average which is at 2.37.
  • Compared to the average S&P500 Dividend Yield of 1.82, WTW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.31%

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.
  • 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 Years9
Div Non Decr Years9
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.
  • The dividend of WTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.31%
EPS Next 2Y14.89%
EPS Next 3Y14.42%
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 (5/1/2026, 8:03:02 PM)

After market: 256.34 0 (0%)

256.34

+0.14 (+0.05%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-30
Earnings (Next)07-29
Inst Owners101.87%
Inst Owner Change-0.36%
Ins Owners0.32%
Ins Owner Change7.82%
Market Cap24.15B
Revenue(TTM)9.71B
Net Income(TTM)1.60B
Analysts75.56
Price Target370.27 (44.44%)
Short Float %2.2%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend3.67
Dividend Growth(5Y)6.46%
DP22.31%
Div Incr Years9
Div Non Decr Years9
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)-1.13%
PT rev (3m)-0.37%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2.04%
Valuation
Industry RankSector Rank
PE 14.43
Fwd PE 11.3
P/S 2.49
P/FCF 15.62
P/OCF 13.6
P/B 3.03
P/tB N/A
EV/EBITDA 10.18
EPS(TTM)17.77
EY6.93%
EPS(NY)22.68
Fwd EY8.85%
FCF(TTM)16.41
FCFY6.4%
OCF(TTM)18.84
OCFY7.35%
SpS103.06
BVpS84.67
TBVpS-22.32
PEG (NY)0.92
PEG (5Y)1.81
Graham Number183.993 (-28.22%)
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 1.36
F-Score7
WACC8.18%
ROIC/WACC1.4
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)6.15%
EPS 3Y8.34%
EPS 5Y7.99%
EPS Q2Q%18.85%
EPS Next Y15.74%
EPS Next 2Y14.89%
EPS Next 3Y14.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y3.07%
Revenue growth 5Y2.42%
Sales Q2Q%8.5%
Revenue Next Year9.12%
Revenue Next 2Y7.54%
Revenue Next 3Y7.01%
Revenue Next 5Y4.51%
EBIT growth 1Y5.52%
EBIT growth 3Y15.68%
EBIT growth 5Y17.85%
EBIT Next Year22.76%
EBIT Next 3Y13.67%
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 4 / 10 to WILLIS TOWERS WATSON PLC (WTW). This can be considered as Fairly Valued.


What is the profitability of WTW stock?

WILLIS TOWERS WATSON PLC (WTW) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for WTW stock?

The Price/Earnings (PE) ratio for WILLIS TOWERS WATSON PLC (WTW) is 14.43 and the Price/Book (PB) ratio is 3.03.


Can you provide the financial health for WTW stock?

The financial health rating of WILLIS TOWERS WATSON PLC (WTW) is 5 / 10.