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Willis Towers Watson PLC WTW

Morningstar Rating
$283.09 +5.49 (1.98%)
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Company Report

Willis Towers Watson Earnings: Maintaining a Positive Path

Willis Towers Watson largely maintained its recent path in the second quarter, which we view as a positive. While some metrics suggest growth may be starting to normalize, the company maintained fairly strong growth in the quarter overall, with year-over-year organic revenue growth of 6%, which is a bit above our long-term expectations. In addition, the company continues to see strong margin improvement. In our view, the company increasingly looks to be fully back on track. We will maintain our $253 fair value estimate for the narrow-moat company and see shares as about fairly valued at the moment.

Price vs Fair Value

WTW is trading at a 589% premium.
Price
$283.09
Fair Value
$511.00
Uncertainty
Medium
1-Star Price
$567.27
5-Star Price
$316.60
Economic Moat
Vpptbrd
Capital Allocation
Sdvvswsss

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
$277.60
Day Range
$278.50283.49
52-Week Range
$195.29283.49
Bid/Ask
$278.76 / $342.21
Market Cap
$28.75 Bil
Volume/Avg
713,853 / 439,025

Key Statistics

Price/Earnings (Normalized)
18.24
Price/Sales
3.05
Dividend Yield (Trailing)
1.22%
Dividend Yield (Forward)
1.24%
Total Yield
4.16%

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 Core
Total Number of Employees
48,000

Competitors

Valuation

Metric
WTW
TRV
MMC
Price/Earnings (Normalized)
18.2413.2325.49
Price/Book Value
3.081.968.02
Price/Sales
3.051.124.59
Price/Cash Flow
17.204.4420.28
Price/Earnings
WTW
TRV
MMC

Financial Strength

Metric
WTW
TRV
MMC
Quick Ratio
0.310.50
Current Ratio
1.111.17
Interest Coverage
6.1312.529.69
Quick Ratio
WTW
TRV
MMC

Profitability

Metric
WTW
TRV
MMC
Return on Assets (Normalized)
5.56%3.02%8.90%
Return on Equity (Normalized)
16.98%16.15%34.66%
Return on Invested Capital (Normalized)
11.63%13.04%16.70%
Return on Assets
WTW
TRV
MMC
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