10Y annualized return is
average
at 9.2% per year
WTW has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Strong Gross Profit Margin
Positive Operating Profit Margin
Adequate Liquidity Ratios
Manageable Debt Levels
🏆 Strong Strategic Execution
🛡️ Strong Client Relationships and Wins
💰 Financial Health
🚀 Growth Initiatives
🔄 Capital Allocation Strategy
Negative Price-to-Earnings Ratio
High Price-to-Sales Ratio
Negative Net Profit Margin
Low Return on Equity
Low Cash Ratio
⚖️ Impact of Foreign Exchange
🌀 Economic Sensitivity
Overall, WTW demonstrates strong business quality through successful strategic execution, solid client relationships, and financial health. Future prospects appear promising with growth initiatives and a robust capital allocation strategy, though economic sensitivities present potential risks.
Analysis Date: February 4, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Willis Towers Watson is a company that helps other businesses manage their risks and benefits. They provide advice on things like health insurance and retirement plans, helping companies figure out the best ways to take care of their employees. They also offer services to help businesses protect themselves against accidents or losses, like property damage. Overall, they support companies in making smart decisions about their people and their finances.
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
WTW's Q1 performance is likely to have benefited from higher levels of Retirement work, capital market improvements and strong client retention.
Get a deeper insight into the potential performance of Willis Towers Watson (WTW) for the quarter ended March 2025 by going beyond Wall Street's top -...
Willis Towers Watson (WTW) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get pre...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
WTW: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
WTW: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for WTW
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-318.25)
P/B ratio ≤ 1.5 (3.93)
Current ratio ≥ 2.0 (1.20x)
Long-term debt < Net current assets (2.32x)
Margin of safety
WTW does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-0.64%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
60.78%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-0.99%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The company has a gross profit margin of 60.78%, which is quite robust and indicates that it retains a significant portion of revenue after accounting for the cost of goods sold.
With an operating profit margin of 8.67%, the company shows that it is able to generate a profit from its operations, despite challenges in net profitability.
The net profit margin is negative at -0.99%, indicating that the company is not currently profitable at the bottom line, which raises concerns about its overall financial performance.
The return on equity (ROE) is negative at -1.14%, suggesting that the company is not generating returns for its shareholders and may struggle to attract new investment.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.72x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.20x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio of 1.20 and quick ratio of 1.20 indicate that the company has sufficient short-term assets to cover its short-term liabilities, which is a positive sign of liquidity.
The debt-to-equity ratio of 0.73 and debt-to-assets ratio of 0.21 suggest that the company is not overly leveraged, which is a positive aspect of its financial health.
The cash ratio of 0.15 indicates that the company has limited cash reserves relative to its current liabilities, which could pose liquidity risks in times of financial stress.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
WTW successfully completed its 3-year 'Grow, Simplify, and Transform' strategic priorities, enhancing its competitive position and financial performance. This execution is reflected in a 5% organic revenue growth for Q4 2024 and a significant adjusted operating margin expansion of 190 basis points.
WTW has secured significant client wins through its industry-leading analytics capabilities, indicating a strong market position. Notable contracts with major global providers demonstrate the company's ability to leverage trust and collaboration.
The company reported adjusted diluted earnings per share of $16.93, a 17% increase year-over-year, indicating solid profitability and operational efficiency.
Foreign exchange fluctuations are expected to be a headwind for adjusted EPS, which may impact overall financial performance if not managed carefully.
WTW is optimistic about extending growth through further investments in talent and technology, emphasizing a mid-single-digit organic growth target and continued annual adjusted EPS growth.
The company plans to rebalance its capital allocation strategy, including a $1.5 billion share repurchase program and potential M&A activities to enhance business mix and free cash flow.
The company acknowledges potential sensitivity to economic downturns and inflation, which could impact revenue and margins. This uncertainty may affect future growth expectations.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 1.91x)
Total Bought
Total value of insider purchases in recent quarters
$92380
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$48399
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
48
High insider activity
Recent Trend
Change in insider trading pattern
WTW: No trend data available