WILLIS TOWERS WATSON PLC (WTW) Stock Fundamental Analysis
USA - NASDAQ:WTW - IE00BDB6Q211 - Common Stock
313.1 USD
-3.9 (-1.23%)
313.1 USD
0 (0%)
Overall WTW gets a fundamental rating of 4 out of 10. We evaluated WTW against 147 industry peers in the Insurance industry. Both the profitability and the financial health of WTW get a neutral evaluation. Nothing too spectacular is happening here. WTW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WTW was profitable.
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
Looking at the Return On Assets, with a value of 0.48%, WTW is doing worse than 72.11% of the companies in the same industry.
The Return On Equity of WTW (1.69%) is worse than 82.31% of its industry peers.
With an excellent Return On Invested Capital value of 11.93%, WTW belongs to the best of the industry, outperforming 96.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WTW is above the industry average of 4.49%.
The last Return On Invested Capital (11.93%) for WTW is above the 3 year average (8.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 1.69% | ||
| ROIC | 11.93% |
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 has a worse Profit Margin (1.40%) than 80.95% of its industry peers.
WTW has a better Operating Margin (22.49%) than 86.39% of its industry peers.
WTW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.49% | ||
| PM (TTM) | 1.4% | ||
| 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.
WTW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WTW has less shares outstanding
WTW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that WTW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WTW (1.57) is better than 86.39% of its industry peers.
The Debt to FCF ratio of WTW is 4.50, which is a neutral value as it means it would take WTW, 4.50 years of fcf income to pay off all of its debts.
WTW has a Debt to FCF ratio (4.50) which is in line with its industry peers.
WTW has a Debt/Equity ratio of 0.59. This is a neutral value indicating WTW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, WTW is doing worse than 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 1.57 |
ROIC/WACC1.41
WACC8.49%
2.3 Liquidity
WTW has a Current Ratio of 1.13. This is a normal value and indicates that WTW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WTW (1.13) is better than 80.95% of its industry peers.
A Quick Ratio of 1.13 indicates that WTW should not have too much problems paying its short term obligations.
The Quick ratio of WTW (1.13) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
WTW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.05%.
WTW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.03% yearly.
Looking at the last year, WTW shows a small growth in Revenue. The Revenue has grown by 4.71% in the last year.
Measured over the past years, WTW shows a small growth in Revenue. The Revenue has been growing by 3.48% on average per year.
EPS 1Y (TTM)6.05%
EPS 3Y7.25%
EPS 5Y9.03%
EPS Q2Q%4.78%
Revenue 1Y (TTM)4.71%
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 Y1.26%
EPS Next 2Y7.33%
EPS Next 3Y9.76%
EPS Next 5Y9.39%
Revenue Next Year-2.84%
Revenue Next 2Y1.32%
Revenue Next 3Y2.82%
Revenue Next 5Y2.99%
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 stable.
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
WTW is valuated rather expensively with a Price/Earnings ratio of 18.21.
68.03% 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 26.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.08, the valuation of WTW can be described as correct.
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 63.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. WTW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTW is on the same level as its industry peers.
63.95% of the companies in the same industry are cheaper than WTW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.91 | ||
| EV/EBITDA | 13.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)14.46
PEG (5Y)2.02
EPS Next 2Y7.33%
EPS Next 3Y9.76%
5. Dividend
5.1 Amount
WTW has a Yearly Dividend Yield of 1.15%.
WTW's Dividend Yield is comparable with the industry average which is at 3.30.
With a Dividend Yield of 1.15, WTW pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of WTW is nicely growing with an annual growth rate of 6.49%!
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)6.49%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
260.58% of the earnings are spent on dividend by WTW. This is not a sustainable payout ratio.
The dividend of WTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP260.58%
EPS Next 2Y7.33%
EPS Next 3Y9.76%
313.1
-3.9 (-1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change-1.25%
Market Cap30.54B
Revenue(TTM)9.93B
Net Income(TTM)137.00M
Analysts75.38
Price Target379.49 (21.2%)
Short Float %2.6%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend3.5
Dividend Growth(5Y)6.49%
DP260.58%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.04%
Min EPS beat(2)-2.96%
Max EPS beat(2)9.03%
EPS beat(4)3
Avg EPS beat(4)3.31%
Min EPS beat(4)-2.96%
Max EPS beat(4)9.03%
EPS beat(8)6
Avg EPS beat(8)4.18%
EPS beat(12)9
Avg EPS beat(12)2.03%
EPS beat(16)13
Avg EPS beat(16)2.56%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.22%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)4
Avg Revenue beat(16)-1.79%
PT rev (1m)0.29%
PT rev (3m)1.01%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.08 | ||
| P/S | 3.11 | ||
| P/FCF | 25.91 | ||
| P/OCF | 21.71 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.01 |
EPS(TTM)17.19
EY5.49%
EPS(NY)19.47
Fwd EY6.22%
FCF(TTM)12.09
FCFY3.86%
OCF(TTM)14.42
OCFY4.61%
SpS100.54
BVpS83.03
TBVpS-21.22
PEG (NY)14.46
PEG (5Y)2.02
Graham Number179.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 1.69% | ||
| ROCE | 15.1% | ||
| ROIC | 11.93% | ||
| ROICexc | 13.78% | ||
| ROICexgc | 70.44% | ||
| OM | 22.49% | ||
| PM (TTM) | 1.4% | ||
| GM | N/A | ||
| FCFM | 12.02% |
ROA(3y)2.15%
ROA(5y)4.22%
ROE(3y)6.64%
ROE(5y)12.19%
ROIC(3y)8.9%
ROIC(5y)7.27%
ROICexc(3y)9.9%
ROICexc(5y)8.3%
ROICexgc(3y)46.83%
ROICexgc(5y)41.54%
ROCE(3y)11.27%
ROCE(5y)9.2%
ROICexgc growth 3Y11.06%
ROICexgc growth 5Y19.69%
ROICexc growth 3Y21.06%
ROICexc growth 5Y22.92%
OM growth 3Y10.88%
OM growth 5Y11.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 53.27% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.42% | ||
| Profit Quality | 860.58% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.57 |
F-Score7
WACC8.49%
ROIC/WACC1.41
Cap/Depr(3y)45.88%
Cap/Depr(5y)41.14%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.05%
EPS 3Y7.25%
EPS 5Y9.03%
EPS Q2Q%4.78%
EPS Next Y1.26%
EPS Next 2Y7.33%
EPS Next 3Y9.76%
EPS Next 5Y9.39%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y3.34%
Revenue growth 5Y3.48%
Sales Q2Q%-0.04%
Revenue Next Year-2.84%
Revenue Next 2Y1.32%
Revenue Next 3Y2.82%
Revenue Next 5Y2.99%
EBIT growth 1Y12.44%
EBIT growth 3Y14.58%
EBIT growth 5Y14.92%
EBIT Next Year26.84%
EBIT Next 3Y14.35%
EBIT Next 5YN/A
FCF growth 1Y56.78%
FCF growth 3Y-12.01%
FCF growth 5Y10.3%
OCF growth 1Y42.99%
OCF growth 3Y-9.81%
OCF growth 5Y6.94%
WILLIS TOWERS WATSON PLC / WTW FAQ
Can you provide the ChartMill fundamental rating for WILLIS TOWERS WATSON PLC?
ChartMill assigns a fundamental rating of 4 / 10 to WTW.
What is the valuation status of WILLIS TOWERS WATSON PLC (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 5 / 10.
What are the PE and PB ratios of WILLIS TOWERS WATSON PLC (WTW) stock?
The Price/Earnings (PE) ratio for WILLIS TOWERS WATSON PLC (WTW) is 18.21 and the Price/Book (PB) ratio is 3.77.
What is the financial health of WILLIS TOWERS WATSON PLC (WTW) stock?
The financial health rating of WILLIS TOWERS WATSON PLC (WTW) is 5 / 10.