Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $31.75B
• Dividend Yield: 1.1%
• Average Volume (3M): 617.79K
• Price to Earnings (P/E): 227.5
• Beta (1Y): 0.29
• Revenue Growth: 1.27%
• EPS Growth: -84.75%
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Brokers
• EPS (TTM): 2.86
• Shares Outstanding: 97,547,990
• 10 Day Avg. Volume: 439,238
• 30 Day Avg. Volume: 617,788
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $363.83
• Price Target Upside: 10.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 65 Neutral
• Price Target: $362.00 ▲(9.75% Upside)

The overall stock score of 65 reflects a stable financial position and positive earnings call sentiment, but is tempered by technical indicators suggesting overbought conditions and a high P/E ratio indicating overvaluation. The company's strong operational efficiency and cash flow generation are significant strengths, while challenges in revenue growth and net profitability remain.

Positive Factors

Operating Margin

Adjusted operating margin improved 150 basis points year-over-year due to organic leverage, cost discipline, and benefits from a transformation program.

Segment Growth

Risk & Broking growth of 7% exceeded expectations, suggesting strong performance in this segment.

Share Repurchase

Share repurchases of $500 million exceeded the consensus of $424 million.

Negative Factors

Earnings Per Share

EPS missed due to Tranzact revenues still being included in consensus, foreign exchange headwinds, and a higher tax rate.

Economic Uncertainty

Economic uncertainty is tempering growth in the Risk & Broking segment, impacting revenue projections.

Free Cash Flow

Free cash flow was negative $87 million and missed the consensus of positive $39 million.

Willis Towers Watson Business Overview & Revenue Model

Company Description

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments, Health, Wealth and Career; and Risk and Broking. The company offers actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. It also provides advice, data, software, and products to address clients' total rewards and talent issues. In addition, the company offers risk advice, insurance brokerage, and consulting services in the areas of property and casualty, aerospace, construction, and marine. Further, it offers investment consulting and discretionary management services to insurance and reinsurance companies; insurance consulting and technology, risk and capital management, pricing and predictive modeling, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; wholesale insurance broking services to retail and wholesale brokers; and underwriting and capital management, capital market, and advisory and brokerage services. Additionally, the company provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees in the group and individual markets, as well as delivers healthcare and reimbursement accounts, including health savings accounts, health reimbursement arrangements, flexible spending accounts, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

How the Company Makes Money

WTW generates revenue through multiple streams, primarily from its advisory, broking, and solutions services. The company earns significant income from insurance brokerage fees, which include commissions and service fees charged to clients for facilitating insurance placements. Additionally, WTW's consulting services, particularly in risk management and employee benefits, contribute to its revenue through project-based fees and ongoing service agreements. The firm also benefits from data-driven solutions and technology services, which provide ongoing subscription or licensing revenues. Strategic partnerships with various insurance carriers and technology providers enhance its service offerings and can lead to additional revenue opportunities. Overall, WTW's diversified service portfolio and global reach allow it to capitalize on market demand across different sectors, supporting its overall earnings.

Willis Towers Watson Financial Statement Overview

Summary

Willis Towers Watson demonstrates a stable financial position with strong operational efficiency and cash flow generation. However, challenges remain in revenue growth and net profitability. The company maintains a healthy balance sheet with manageable leverage, providing a solid foundation for future growth.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is healthy at 43.56%, indicating good cost management. However, the net profit margin is low at 1.40%, reflecting challenges in converting revenue into profit. The revenue growth rate is negative at -5.1%, suggesting a decline in sales compared to the previous period. EBIT and EBITDA margins are strong at 29.12% and 33.48%, respectively, indicating efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, which is manageable within the industry. The return on equity is low at 1.73%, indicating limited profitability from shareholder investments. The equity ratio stands at 28.44%, showing a solid equity base relative to total assets, which provides a cushion against liabilities.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 136.8%, highlighting significant improvement in cash generation. The operating cash flow to net income ratio is 10.14%, suggesting robust cash flow relative to net income. The free cash flow to net income ratio is 105.33%, indicating excellent cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.81B	9.93B	9.48B	8.87B	9.00B	8.62B
Gross Profit	4.27B	4.43B	4.14B	3.62B	4.55B	3.76B
EBITDA	3.28B	823.00M	2.02B	1.88B	2.07B	2.15B
Net Income	137.00M	-98.00M	1.05B	1.01B	4.22B	996.00M
Balance Sheet
Total Assets	28.48B	27.68B	29.09B	31.77B	34.97B	38.53B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.89B	1.42B	1.26B	4.69B	2.04B
Total Debt	5.93B	5.93B	5.94B	5.48B	5.49B	6.72B
Total Liabilities	20.30B	19.66B	19.50B	21.68B	21.66B	27.60B
Stockholders Equity	8.10B	7.94B	9.52B	10.02B	13.26B	10.82B
Cash Flow
Free Cash Flow	1.48B	1.27B	1.10B	608.00M	1.86B	1.49B
Operating Cash Flow	1.41B	1.51B	1.34B	812.00M	2.06B	1.77B
Investing Cash Flow	1.02B	250.00M	-1.08B	-173.00M	2.77B	-160.00M
Financing Cash Flow	-1.62B	-459.00M	-1.20B	-3.44B	-3.11B	378.00M

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 329.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTW, the sentiment is Positive. The current price of 329.84 is below the 20-day moving average (MA) of 331.06, above the 50-day MA of 317.59, and above the 200-day MA of 316.46, indicating a neutral trend. The MACD of 2.99 indicates Positive momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTW.

Willis Towers Watson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AON	78 Outperform	$80.20B	31.14	37.99%	0.76%	18.42%	-4.44%
BRO	76 Outperform	$31.48B	27.52	11.27%	0.63%	11.68%	-0.17%
AJG	75 Outperform	$77.58B	45.61	9.49%	0.82%	15.03%	28.86%
ERIE	70 Outperform	$15.74B	28.50	31.14%	1.60%	12.19%	17.82%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
MMC	67 Neutral	$101.00B	24.66	28.33%	1.63%	9.22%	3.05%
WTW	65 Neutral	$31.75B	227.45	1.57%	1.10%	1.27%	-84.75%

Willis Towers Watson Corporate Events

Willis Towers Watson Shareholders Approve AGM Proposals

On May 15, 2025, Willis Towers Watson held its Annual General Meeting of Shareholders, where 91.86% of the company’s ordinary shares were represented. Shareholders approved all proposals, including the election of directors, ratification of auditors, executive compensation, and granting authority to the Board for share issuance and pre-emption rights under Irish law. Paul Thomas retired from the Board, with Paul Reilly succeeding him as the non-executive Chair.

The most recent analyst rating on (WTW) stock is a Buy with a $315.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.