322.81 USD
+0.34 (+0.11%)
322.81 USD
0 (0%)
Overall WTW gets a fundamental rating of 5 out of 10. We evaluated WTW against 149 industry peers in the Insurance industry. WTW has an excellent profitability rating, 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
- In the past year WTW was profitable.
- WTW had a positive operating cash flow in the past year.
- WTW had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years WTW had a positive operating cash flow.
1.2 Ratios
- WTW's Return On Assets of 7.71% is amongst the best of the industry. WTW outperforms 93.29% of its industry peers.
- With an excellent Return On Equity value of 27.36%, WTW belongs to the best of the industry, outperforming 93.96% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.62%, WTW belongs to the best of the industry, outperforming 94.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WTW is significantly below the industry average of 14.92%.
- The last Return On Invested Capital (12.62%) for WTW is above the 3 year average (8.90%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 21.58%, WTW belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
- WTW has a better Operating Margin (23.13%) than 80.54% of its industry peers.
- WTW's Operating Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTW is creating some value.
- The number of shares outstanding for WTW has been reduced compared to 1 year ago.
- The number of shares outstanding for WTW has been reduced compared to 5 years ago.
- WTW has a worse debt/assets ratio than last year.
2.2 Solvency
- WTW has an Altman-Z score of 1.60. This is a bad value and indicates that WTW is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WTW (1.60) is better than 85.91% 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.
- WTW has a Debt to FCF ratio (3.85) which 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.
- The Debt to Equity ratio of WTW (0.62) is worse than 76.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.48
WACC8.5%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that WTW should not have too much problems paying its short term obligations.
- The Current ratio of WTW (1.10) is better than 80.54% of its industry peers.
- A Quick Ratio of 1.10 indicates that WTW should not have too much problems paying its short term obligations.
- WTW's Quick ratio of 1.10 is amongst the best of the industry. WTW outperforms 80.54% 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%.
- The Earnings Per Share has been growing by 9.03% on average over the past years. This is quite good.
- The Revenue has decreased by -0.02% in the past year.
- Measured over the past years, WTW shows a small growth in Revenue. The Revenue has been growing by 3.48% on average per year.
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-2.84%
Revenue Next 2Y1.88%
Revenue Next 3Y3.26%
Revenue Next 5Y2.99%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.78, which indicates a rather expensive current valuation of WTW.
- WTW's Price/Earnings ratio is a bit more expensive when compared to the industry. WTW is more expensive than 65.77% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WTW is valued a bit cheaper.
- The Price/Forward Earnings ratio is 16.55, which indicates a correct valuation of WTW.
- WTW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WTW is more expensive than 62.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, WTW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 16.55 |
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.
- 65.77% 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 | 22.38 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTW does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of WTW may justify a higher PE ratio.
PEG (NY)13.51
PEG (5Y)2.08
EPS Next 2Y7.45%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.11%, WTW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.53, WTW has a dividend in line with its industry peers.
- WTW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- On average, the dividend of WTW grows each year by 6.49%, which is quite nice.
- WTW has been paying a dividend for at least 10 years, so it has 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.
- The dividend of WTW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.92%
EPS Next 2Y7.45%
EPS Next 3Y9.96%
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 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 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 1.39% 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 16.92%.