WILLIS TOWERS WATSON PLC (WLTW) Fundamental Analysis & Valuation

NASDAQ:WLTW

Current stock price

231.56
-2.78 (-1.19%)
At close:
231.56
0 (0%)
After Hours:

This WLTW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

0

1. WLTW Profitability Analysis

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 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 2016 2017 2018 2019 2020 2 4 6 8 10

1.3 Margins

  • WLTW does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
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 2016 2017 2018 2019 2020 5 10

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2

2. WLTW Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for WLTW remains at a similar level compared to 1 year ago.
  • Compared to 1 year ago, WLTW has an improved debt to assets ratio.
WLTW Yearly Shares OutstandingWLTW Yearly Shares OutstandingYearly Shares Outstanding 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 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.
  • A Debt/Equity ratio of 0.35 indicates that WLTW is not too dependend on debt financing.
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 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.
  • A Quick Ratio of 1.11 indicates that WLTW should not have too much problems paying 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 2016 2017 2018 2019 2020 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. WLTW Growth Analysis

3.1 Past

  • WLTW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.62%, which is quite good.
  • The Earnings Per Share has been growing by 15.64% on average over the past years. This is quite good.
  • Looking at the last year, WLTW shows a very strong growth in Revenue. The Revenue has grown by 25.52%.
  • The Revenue has been growing by 19.55% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 11.08% on average over the next years. This is quite good.
  • Based on estimates for the next years, WLTW will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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2

4. WLTW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.46, the valuation of WLTW can be described as rather expensive.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, WLTW is valued a bit cheaper.
  • WLTW is valuated correctly with a Price/Forward Earnings ratio of 16.46.
  • WLTW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
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 5 10 15 20 25

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

  • WLTW's 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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. WLTW Dividend Analysis

5.1 Amount

  • WLTW has a Yearly Dividend Yield of 1.37%.
  • WLTW's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
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 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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WLTW Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)02-08
Inst Owners80.2%
Inst Owner Change-1.78%
Ins Owners0.57%
Ins Owner Change0%
Market Cap28.85B
Revenue(TTM)11.65B
Net Income(TTM)3.03B
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
Graham NumberN/A
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
ROICexgc growth 3Y0%
ROICexgc 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

WILLIS TOWERS WATSON PLC / WLTW Fundamental Analysis FAQ

What is the fundamental rating for WLTW stock?

ChartMill assigns a fundamental rating of 5 / 10 to WLTW.


What is the valuation status of WILLIS TOWERS WATSON PLC (WLTW) stock?

ChartMill assigns a valuation rating of 2 / 10 to WILLIS TOWERS WATSON PLC (WLTW). This can be considered as Overvalued.


What is the profitability of WLTW stock?

WILLIS TOWERS WATSON PLC (WLTW) has a profitability rating of 9 / 10.


What are the PE and PB ratios of WILLIS TOWERS WATSON PLC (WLTW) stock?

The Price/Earnings (PE) ratio for WILLIS TOWERS WATSON PLC (WLTW) is 17.46 and the Price/Book (PB) ratio is 2.53.


Can you provide the dividend sustainability for WLTW stock?

The dividend rating of WILLIS TOWERS WATSON PLC (WLTW) is 5 / 10 and the dividend payout ratio is 11.95%.