WILLIS TOWERS WATSON PLC (WTW) Fundamental Analysis & Valuation

NASDAQ:WTW • IE00BDB6Q211

Current stock price

289.54 USD
+2.91 (+1.02%)
At close:
289.54 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

  • WTW has a better Return On Assets (5.44%) than 81.21% of its industry peers.
  • The Return On Equity of WTW (20.12%) is better than 85.91% of its industry peers.
  • The Return On Invested Capital of WTW (11.48%) is better than 93.96% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WTW is below the industry average of 15.25%.
  • 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

  • Looking at the Profit Margin, with a value of 16.53%, WTW belongs to the top of the industry, outperforming 81.21% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WTW has grown nicely.
  • WTW has a better Operating Margin (23.25%) than 78.52% 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

  • 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.
  • 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

  • WTW has an Altman-Z score of 1.44. This is a bad value and indicates that WTW is not financially healthy and even has some risk of bankruptcy.
  • WTW's Altman-Z score of 1.44 is amongst the best of the industry. WTW outperforms 86.58% 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 has a Debt to FCF ratio of 4.08. This is comparable to the rest of the industry: WTW outperforms 40.27% 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.
  • With a Debt to Equity ratio value of 0.72, WTW is not doing good in the industry: 84.56% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.08
Altman-Z 1.44
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 has a Current ratio of 1.20. This is amongst the best in the industry. WTW outperforms 83.22% of its industry peers.
  • A Quick Ratio of 1.20 indicates that WTW should not have too much problems paying its short term obligations.
  • WTW has a better Quick ratio (1.20) than 83.22% 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

  • WTW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.66%.
  • WTW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.99% yearly.
  • 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

  • Based on estimates for the next years, WTW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.40% on average per year.
  • 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.
  • 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

  • A Price/Earnings ratio of 16.85 indicates a correct valuation of WTW.
  • 69.13% of the companies in the same industry are cheaper than WTW, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, WTW is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 14.58, 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 62.42% of the companies listed in the same industry.
  • WTW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTW is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, WTW is valued a bit more expensive than the industry average as 63.76% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 17.71
EV/EBITDA 11.29
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.
  • WTW's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)2.11
EPS Next 2Y14.85%
EPS Next 3Y14.4%

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6

5. WTW Dividend Analysis

5.1 Amount

  • WTW has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
  • WTW's Dividend Yield is comparable with the industry average which is at 2.85.
  • 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.
  • 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 (3/13/2026, 8:03:43 PM)

After market: 289.54 0 (0%)

289.54

+2.91 (+1.02%)

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 Cap27.38B
Revenue(TTM)9.71B
Net Income(TTM)1.60B
Analysts75.56
Price Target377.18 (30.27%)
Short Float %1.71%
Short Ratio1.94
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)1.48%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)1.76%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)2.85%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.85%
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 11.29
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 1.44
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 6 / 10 and the dividend payout ratio is 22.31%.