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WILLIS TOWERS WATSON PLC (WLTW) Stock Fundamental Analysis

NASDAQ:WLTW - Nasdaq - Common Stock

231.56  -2.78 (-1.19%)

After market: 231.56 0 (0%)

Fundamental Rating

2

WLTW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of WLTW have multiple concerns. While showing a medium growth rate, WLTW is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

WLTW had positive earnings in the past year.
WLTW Yearly Net Income VS EBIT VS OCF VS FCFWLTW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 500M 1B 1.5B

1.2 Ratios

Industry RankSector Rank
ROA 8.12%
ROE 26.59%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
WLTW Yearly ROA, ROE, ROICWLTW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 5 10 15

1.3 Margins

The Operating Margin and Gross Margin are not available for WLTW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 26.01%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
WLTW Yearly Profit, Operating, Gross MarginsWLTW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 5 10

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2

2. Health

2.1 Basic Checks

The number of shares outstanding for WLTW remains at a similar level compared to 1 year ago.
The debt/assets ratio for WLTW has been reduced compared to a year ago.
WLTW Yearly Shares OutstandingWLTW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 20M 40M 60M 80M 100M
WLTW Yearly Total Debt VS Total AssetsWLTW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 10B 20B 30B

2.2 Solvency

WLTW has an Altman-Z score of 1.48. This is a bad value and indicates that WLTW is not financially healthy and even has some risk of bankruptcy.
WLTW has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Altman-Z 1.48
ROIC/WACCN/A
WACCN/A
WLTW Yearly LT Debt VS Equity VS FCFWLTW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.11 indicates that WLTW should not have too much problems paying its short term obligations.
WLTW has a Quick Ratio of 1.11. This is a normal value and indicates that WLTW is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 1.11
WLTW Yearly Current Assets VS Current LiabilitesWLTW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 5B 10B 15B 20B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.62% over the past year.
WLTW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.64% yearly.
The Revenue has grown by 25.52% in the past year. This is a very strong growth!
WLTW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.55% yearly.
EPS 1Y (TTM)16.62%
EPS 3Y11.28%
EPS 5Y15.64%
EPS Q2Q%30.08%
Revenue 1Y (TTM)25.52%
Revenue growth 3Y4.47%
Revenue growth 5Y19.55%
Sales Q2Q%-1.79%

3.2 Future

WLTW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.08% yearly.
The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y13.63%
EPS Next 2Y9.67%
EPS Next 3Y11.83%
EPS Next 5Y11.08%
Revenue Next Year4.27%
Revenue Next 2Y2.03%
Revenue Next 3Y2.92%
Revenue Next 5Y2.26%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WLTW Yearly Revenue VS EstimatesWLTW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
WLTW Yearly EPS VS EstimatesWLTW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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2

4. Valuation

4.1 Price/Earnings Ratio

WLTW is valuated rather expensively with a Price/Earnings ratio of 17.46.
When comparing the Price/Earnings ratio of WLTW to the average of the S&P500 Index (28.05), we can say WLTW is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.46, which indicates a correct valuation of WLTW.
The average S&P500 Price/Forward Earnings ratio is at 37.67. WLTW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 17.46
Fwd PE 16.46
WLTW Price Earnings VS Forward Price EarningsWLTW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.8
WLTW Per share dataWLTW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.28
PEG (5Y)1.12
EPS Next 2Y9.67%
EPS Next 3Y11.83%

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4

5. Dividend

5.1 Amount

WLTW has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.37, WLTW pays less dividend than the S&P500 average, which is at 2.32.
Industry RankSector Rank
Dividend Yield 1.37%

5.2 History

The dividend of WLTW is nicely growing with an annual growth rate of 9.13%!
WLTW has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)9.13%
Div Incr YearsN/A
Div Non Decr YearsN/A
WLTW Yearly Dividends per shareWLTW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 1 2 3

5.3 Sustainability

WLTW pays out 11.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of WLTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.95%
EPS Next 2Y9.67%
EPS Next 3Y11.83%
WLTW Yearly Income VS Free CF VS DividendWLTW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 500M 1B
WLTW Dividend Payout.WLTW Dividend Payout, showing the Payout Ratio.WLTW Dividend Payout.PayoutRetained Earnings

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WILLIS TOWERS WATSON PLC

NASDAQ:WLTW (1/7/2022, 8:25:56 PM)

After market: 231.56 0 (0%)

231.56

-2.78 (-1.19%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-28 2021-10-28
Earnings (Next)02-08 2022-02-08
Inst Owners80.2%
Inst Owner Change-1.13%
Ins Owners0.57%
Ins Owner Change0%
Market Cap28.85B
Analysts73.64
Price Target269.75 (16.49%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
Yearly Dividend2.69
Dividend Growth(5Y)9.13%
DP11.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 17.46
Fwd PE 16.46
P/S 2.48
P/FCF N/A
P/OCF N/A
P/B 2.53
P/tB N/A
EV/EBITDA 12.8
EPS(TTM)13.26
EY5.73%
EPS(NY)14.07
Fwd EY6.08%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS93.48
BVpS91.45
TBVpSN/A
PEG (NY)1.28
PEG (5Y)1.12
Profitability
Industry RankSector Rank
ROA 8.12%
ROE 26.59%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 26.01%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.11
Quick Ratio 1.11
Altman-Z 1.48
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.62%
EPS 3Y11.28%
EPS 5Y15.64%
EPS Q2Q%30.08%
EPS Next Y13.63%
EPS Next 2Y9.67%
EPS Next 3Y11.83%
EPS Next 5Y11.08%
Revenue 1Y (TTM)25.52%
Revenue growth 3Y4.47%
Revenue growth 5Y19.55%
Sales Q2Q%-1.79%
Revenue Next Year4.27%
Revenue Next 2Y2.03%
Revenue Next 3Y2.92%
Revenue Next 5Y2.26%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A