WILLIS TOWERS WATSON PLC (WTW) Stock Fundamental Analysis
NASDAQ:WTW • IE00BDB6Q211
282.98 USD
+2.89 (+1.03%)
At close: Feb 12, 2026
282.98 USD
0 (0%)
After Hours: 2/12/2026, 8:21:36 PM
WTW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. WTW scores excellent on profitability, but there are some minor concerns on its financial health. WTW is valied quite expensively at the moment, while 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
- Looking at the Return On Assets, with a value of 5.44%, WTW belongs to the top of the industry, outperforming 85.91% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 20.12%, WTW belongs to the top of the industry, outperforming 87.92% of the companies in the same industry.
- WTW has a better Return On Invested Capital (11.48%) than 95.30% of its industry peers.
- WTW had an Average Return On Invested Capital over the past 3 years of 10.47%. This is below the industry average of 14.88%.
- The 3 year average ROIC (10.47%) for WTW is below the current ROIC(11.48%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- WTW's Profit Margin of 16.53% is amongst the best of the industry. WTW outperforms 83.22% of its industry peers.
- In the last couple of years the Profit Margin of WTW has grown nicely.
- The Operating Margin of WTW (23.25%) is better than 81.88% of its industry peers.
- In the last couple of years the Operating Margin of WTW has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTW is 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.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that WTW is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.43, WTW belongs to the top of the industry, outperforming 86.58% of the companies in the same industry.
- The Debt to FCF ratio of WTW is 4.08, which is a neutral value as it means it would take WTW, 4.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WTW (4.08) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.72 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.08 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.37
WACC8.37%
2.3 Liquidity
- WTW has a Current Ratio of 1.20. This is a normal value and indicates that WTW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of WTW (1.20) is better than 83.89% 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 Quick ratio of 1.20. This is amongst the best in the industry. WTW outperforms 83.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- WTW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.66%.
- Measured over the past 5 years, WTW shows a small growth in Earnings Per Share. The EPS has been growing by 7.99% on average per year.
- WTW shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
- WTW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.42% yearly.
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 12.10% on average per year.
- The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y13.61%
EPS Next 2Y13.9%
EPS Next 3Y12.1%
EPS Next 5YN/A
Revenue Next Year6.94%
Revenue Next 2Y6.58%
Revenue Next 3Y4.51%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.47 indicates a correct valuation of WTW.
- Based on the Price/Earnings ratio, WTW is valued a bit more expensive than 63.09% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WTW to the average of the S&P500 Index (27.67), we can say WTW is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.50, which indicates a correct valuation of WTW.
- 60.40% of the companies in the same industry are cheaper than WTW, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.69. WTW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 14.5 |
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 61.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- WTW has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WTW's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)1.21
PEG (5Y)2.06
EPS Next 2Y13.9%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
- WTW has a Yearly Dividend Yield of 1.11%.
- Compared to an average industry Dividend Yield of 2.18, WTW has a dividend in line with its industry peers.
- WTW's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- The dividend of WTW is nicely growing with an annual growth rate of 6.46%!
- 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)6.46%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 22.31% of the earnings are spent on dividend by WTW. This is a low number and sustainable payout ratio.
- The dividend of WTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.31%
EPS Next 2Y13.9%
EPS Next 3Y12.1%
282.98
+2.89 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners99.63%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change-0.27%
Market Cap26.91B
Revenue(TTM)9.71B
Net Income(TTM)1.60B
Analysts75.56
Price Target374.03 (32.18%)
Short Float %2.63%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend3.67
Dividend Growth(5Y)6.46%
DP22.31%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
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)0.53%
PT rev (3m)-1.44%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 14.5 | ||
| P/S | 2.77 | ||
| P/FCF | 17.4 | ||
| P/OCF | 15.16 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.24 |
EPS(TTM)17.18
EY6.07%
EPS(NY)19.52
Fwd EY6.9%
FCF(TTM)16.26
FCFY5.75%
OCF(TTM)18.67
OCFY6.6%
SpS102.1
BVpS83.89
TBVpS-22.12
PEG (NY)1.21
PEG (5Y)2.06
Graham Number180.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 20.12% | ||
| ROCE | 14.54% | ||
| ROIC | 11.48% | ||
| ROICexc | 14.39% | ||
| ROICexgc | 77.02% | ||
| 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)12.25%
ROICexc(5y)10.26%
ROICexgc(3y)60.81%
ROICexgc(5y)51.46%
ROCE(3y)13.26%
ROCE(5y)11.07%
ROICexgc growth 3Y29.95%
ROICexgc growth 5Y22.96%
ROICexc growth 3Y25.24%
ROICexc growth 5Y25.7%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.08 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 54.78% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.36% | ||
| Profit Quality | 96.32% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.43 |
F-Score7
WACC8.37%
ROIC/WACC1.37
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 Y13.61%
EPS Next 2Y13.9%
EPS Next 3Y12.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y3.07%
Revenue growth 5Y2.42%
Sales Q2Q%-3.26%
Revenue Next Year6.94%
Revenue Next 2Y6.58%
Revenue Next 3Y4.51%
Revenue Next 5Y4.51%
EBIT growth 1Y5.52%
EBIT growth 3Y15.68%
EBIT growth 5Y17.85%
EBIT Next Year21.35%
EBIT Next 3YN/A
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 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 13.61% 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%.