WILLIS TOWERS WATSON PLC (WLTW)
Common Stock
WLTW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. Both the profitability and financial health of WLTW have multiple concerns. WLTW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WLTW had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
WLTW does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
Compared to 1 year ago, WLTW has about the same amount of shares outstanding.
Compared to 1 year ago, WLTW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that WLTW is in the distress zone and has some risk of bankruptcy.
A Debt/Equity ratio of 0.35 indicates that WLTW is not too dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACCN/A
WACCN/A
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.62% over the past year.
Measured over the past years, WLTW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.64% on average per year.
WLTW shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.52%.
Measured over the past years, WLTW shows a quite strong growth in Revenue. The Revenue has been growing by 19.55% on average per year.
EPS 1Y (TTM)16.62%
EPS 3Y11.28%
EPS 5Y15.64%
EPS growth Q2Q30.08%
Revenue 1Y (TTM)25.52%
Revenue growth 3Y4.47%
Revenue growth 5Y19.55%
Revenue growth 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.
WLTW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.46, WLTW is valued on the expensive side.
Compared to an average S&P500 Price/Earnings ratio of 24.92, WLTW is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.46, WLTW is valued correctly.
WLTW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.8 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, WLTW has a reasonable but not impressive dividend return.
Compared to an average S&P500 Dividend Yield of 2.43, WLTW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of WLTW grows each year by 9.13%, which is quite nice.
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
5.3 Sustainability
11.95% of the earnings are spent on dividend by WLTW. This is a low number and 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%
WILLIS TOWERS WATSON PLC
NASDAQ:WLTW (1/7/2022, 7:25:56 PM)
After market: 231.56 0 (0%)231.56
-2.78 (-1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 16.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 26.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 26.01% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.62%
EPS 3Y11.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.52%
Revenue growth 3Y4.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y