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Willis Towers Watson PLC WTW

Morningstar Rating
$265.21 −0.22 (0.08%)
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Company Report

Willis Towers Watson Is Getting Back on Track

In January 2016, Towers Watson and Willis merged, creating a diversified brokerage and consulting firm with a mix similar to peers Aon and Marsh McLennan. While the combination is still significantly smaller than these industry leaders, the firms' record in pursuing this strategy suggested a favorable future, and results since the merger were fairly good. Over the long run, we think this combination sets up Willis Towers Watson to achieve moderate but stable growth and attractive profitability.

Price vs Fair Value

WTW is trading at a 5% premium.
Price
$265.17
Fair Value
$385.00
Uncertainty
Medium
1-Star Price
$256.81
5-Star Price
$218.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The tollbooth nature of much of its operations and a flexible cost structure should make Willis Towers Watson a relatively stable producer of free cash flow.

Bears

Willis Towers Watson is tied to mature industries, which limits its long-term growth prospects.

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News

Trading Information

Previous Close Price
$265.43
Day Range
$264.23266.94
52-Week Range
$195.53278.77
Bid/Ask
$265.21 / $265.45
Market Cap
$27.12 Bil
Volume/Avg
111,437 / 479,309

Key Statistics

Price/Earnings (Normalized)
18.20
Price/Sales
2.96
Dividend Yield (Trailing)
1.28%
Dividend Yield (Forward)
1.33%
Total Yield
4.97%

Company Profile

In January 2016, Towers Watson and Willis Group merged to form Willis Towers Watson, a global advisory, insurance brokerage, and solutions company. The company operates in two business segments: health, wealth, and career (its consulting operations) and risk and brokering (its brokerage operations). It has about 48,000 employees.
Sector
Financial Services
Industry
Insurance Brokers
Stock Style Box
Large Growth
Total Number of Employees
48,000

Competitors

Valuation

Metric
WTW
TRV
MMC
Price/Earnings (Normalized)
18.2015.6324.19
Price/Book Value
2.861.968.01
Price/Sales
2.961.164.32
Price/Cash Flow
16.384.6418.96
Price/Earnings
WTW
TRV
MMC

Financial Strength

Metric
WTW
TRV
MMC
Quick Ratio
0.330.46
Current Ratio
1.061.14
Interest Coverage
6.4410.889.54
Quick Ratio
WTW
TRV
MMC

Profitability

Metric
WTW
TRV
MMC
Return on Assets (Normalized)
5.15%2.61%9.42%
Return on Equity (Normalized)
15.72%13.93%35.90%
Return on Invested Capital (Normalized)
11.07%11.40%16.96%
Return on Assets
WTW
TRV
MMC
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Insurance Brokers Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
MMC
Marsh & McLennan Companies IncGcnpsdbgvKvxrz$99.2 Bil
AON
Aon PLC Class AHzbdvmlbjLdkbsww$61.3 Bil
AJG
Arthur J. Gallagher & CoSkvh$51.6 Bil
BRO
Brown & Brown IncPbsf$23.1 Bil
ERIE
Erie Indemnity Co Class ALtl$20.0 Bil
CRVL
CorVel CorpVlts$4.0 Bil
BRP
BRP Group Inc Class APksc$1.7 Bil
CRD.B
Crawford & Co Class BFsv$484.8 Mil
CRD.A
Crawford & Co Class AQjzyv$483.4 Mil

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