334.15 USD
-0.45 (-0.13%)
334.15 USD
0 (0%)
Taking everything into account, WTW scores 5 out of 10 in our fundamental rating. WTW was compared to 148 industry peers in the Insurance industry. WTW scores excellent on profitability, but there are some minor concerns on its financial health. WTW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
1.2 Ratios
WTW has a Return On Assets of 7.71%. This is amongst the best in the industry. WTW outperforms 93.24% of its industry peers.
The Return On Equity of WTW (27.36%) is better than 93.92% of its industry peers.
WTW has a better Return On Invested Capital (12.62%) than 95.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WTW is significantly below the industry average of 14.88%.
The 3 year average ROIC (8.90%) for WTW is below the current ROIC(12.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 27.36% | ||
| ROIC | 12.62% |
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 better Profit Margin (21.58%) than 91.89% of its industry peers.
WTW has a Operating Margin of 23.13%. This is amongst the best in the industry. WTW outperforms 81.08% of its industry peers.
In the last couple of years the Operating Margin of WTW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.13% | ||
| PM (TTM) | 21.58% | ||
| 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
WTW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WTW has been reduced compared to 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.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that WTW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WTW (1.64) is better than 85.81% of its industry peers.
WTW has a debt to FCF ratio of 3.85. This is a good value and a sign of high solvency as WTW would need 3.85 years to pay back of all of its debts.
The Debt to FCF ratio of WTW (3.85) is comparable to the rest of the industry.
WTW has a Debt/Equity ratio of 0.62. This is a neutral value indicating WTW is somewhat dependend on debt financing.
WTW has a worse Debt to Equity ratio (0.62) than 77.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.48
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.10 indicates that WTW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, WTW belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that WTW should not have too much problems paying its short term obligations.
WTW has a Quick ratio of 1.10. This is amongst the best in the industry. WTW outperforms 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
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 decrease in Revenue. The Revenue has decreased by -0.02% in the last year.
WTW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.48% yearly.
EPS 1Y (TTM)6.05%
EPS 3Y7.25%
EPS 5Y9.03%
EPS Q2Q%4.78%
Revenue 1Y (TTM)-0.02%
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.
Based on estimates for the next years, WTW will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y1.39%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
EPS Next 5Y9.39%
Revenue Next Year-2.82%
Revenue Next 2Y1.76%
Revenue Next 3Y3.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.44, the valuation of WTW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WTW indicates a slightly more expensive valuation: WTW is more expensive than 64.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. WTW is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.13, the valuation of WTW can be described as rather expensive.
64.86% of the companies in the same industry are cheaper than WTW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, WTW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 17.13 |
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.
66.22% 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 | 23.17 | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WTW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)13.98
PEG (5Y)2.15
EPS Next 2Y7.45%
EPS Next 3Y9.96%
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 2.42.
With a Dividend Yield of 1.15, WTW pays less dividend than the S&P500 average, which is at 2.00.
| 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 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)6.49%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
16.92% of the earnings are spent on dividend by WTW. This is a low number and sustainable payout ratio.
WTW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.92%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
334.15
-0.45 (-0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.78%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change-0.27%
Market Cap31.99B
Revenue(TTM)9.81B
Net Income(TTM)2.12B
Analysts75.38
Price Target372.04 (11.34%)
Short Float %2.41%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend3.5
Dividend Growth(5Y)6.49%
DP16.92%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.31%
Min EPS beat(2)-0.42%
Max EPS beat(2)9.03%
EPS beat(4)2
Avg EPS beat(4)1.48%
Min EPS beat(4)-2.96%
Max EPS beat(4)9.03%
EPS beat(8)5
Avg EPS beat(8)3.13%
EPS beat(12)8
Avg EPS beat(12)1.8%
EPS beat(16)12
Avg EPS beat(16)2.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.68%
Revenue beat(16)4
Avg Revenue beat(16)-1.44%
PT rev (1m)-0.29%
PT rev (3m)0.71%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 17.13 | ||
| P/S | 3.26 | ||
| P/FCF | 23.17 | ||
| P/OCF | 19.96 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.19 |
EPS(TTM)17.19
EY5.14%
EPS(NY)19.51
Fwd EY5.84%
FCF(TTM)14.42
FCFY4.32%
OCF(TTM)16.74
OCFY5.01%
SpS102.42
BVpS80.78
TBVpS-24.92
PEG (NY)13.98
PEG (5Y)2.15
Graham Number176.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 27.36% | ||
| ROCE | 15.98% | ||
| ROIC | 12.62% | ||
| ROICexc | 14.6% | ||
| ROICexgc | 83.34% | ||
| OM | 23.13% | ||
| PM (TTM) | 21.58% | ||
| GM | N/A | ||
| FCFM | 14.08% |
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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.85 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 53.49% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.75% | ||
| Profit Quality | 65.26% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.64 |
F-Score6
WACC8.52%
ROIC/WACC1.48
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 Y1.39%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
EPS Next 5Y9.39%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y3.34%
Revenue growth 5Y3.48%
Sales Q2Q%-0.04%
Revenue Next Year-2.82%
Revenue Next 2Y1.76%
Revenue Next 3Y3.21%
Revenue Next 5Y2.99%
EBIT growth 1Y11.67%
EBIT growth 3Y14.58%
EBIT growth 5Y14.92%
EBIT Next Year28.17%
EBIT Next 3Y14.89%
EBIT Next 5YN/A
FCF growth 1Y43.56%
FCF growth 3Y-12.01%
FCF growth 5Y10.3%
OCF growth 1Y33.81%
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 5 / 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 7 / 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 19.44 and the Price/Book (PB) ratio is 4.14.
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.