Willis Towers Watson Public Limited Company
Willis Towers Watson Public Limited Company Fundamental Analysis
Willis Towers Watson Public Limited Company (WTW) shows moderate financial fundamentals with a PE ratio of 17.99, profit margin of 16.53%, and ROE of 20.10%. The company generates $9.7B in annual revenue with moderate year-over-year growth of 4.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WTW's fundamental strength across five key dimensions:
Efficiency Score
WeakWTW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWTW trades at attractive valuation levels.
Growth Score
WeakWTW faces weak or negative growth trends.
Financial Health Score
ExcellentWTW maintains a strong and stable balance sheet.
Profitability Score
ExcellentWTW achieves industry-leading margins.
Key Financial Metrics
Is WTW Expensive or Cheap?
P/E Ratio
WTW trades at 17.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WTW's PEG of -0.81 indicates potential undervaluation.
Price to Book
The market values Willis Towers Watson Public Limited Company at 3.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.43 times EBITDA. This is generally considered low.
How Well Does WTW Make Money?
Net Profit Margin
For every $100 in sales, Willis Towers Watson Public Limited Company keeps $16.53 as profit after all expenses.
Operating Margin
Core operations generate 23.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.10 in profit for every $100 of shareholder equity.
ROA
Willis Towers Watson Public Limited Company generates $5.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Willis Towers Watson Public Limited Company produces operating cash flow of $1.77B, showing steady but balanced cash generation.
Free Cash Flow
Willis Towers Watson Public Limited Company generates strong free cash flow of $1.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.17 in free cash annually.
FCF Yield
WTW converts 5.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How WTW Stacks Against Its Sector Peers
| Metric | WTW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.99 | 18.86 | Neutral |
| ROE | 20.10% | 847.00% | Weak |
| Net Margin | 16.53% | 4202.00% | Weak |
| Debt/Equity | 0.87 | 0.91 | Neutral |
| Current Ratio | 1.20 | 667.17 | Neutral |
| ROA | 5.44% | -21543.00% (disorted) | Weak |
WTW outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Willis Towers Watson Public Limited Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.01%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-111.96%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
78.27%
Industry Style: Value, Dividend, Cyclical
High Growth