Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $32.19B
• Dividend Yield: 1.09%
• Average Volume (3M): 702.24K
• Price to Earnings (P/E): 230.6
• Beta (1Y): 0.30
• Revenue Growth: 1.27%
• EPS Growth: -84.75%
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Brokers
• EPS (TTM): 2.86
• Shares Outstanding: 97,547,990
• 10 Day Avg. Volume: 776,584
• 30 Day Avg. Volume: 702,240
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 10.02
• Enterprise Value/Ebitda: 10.95
• 1Y Price Target: $357.92
• Price Target Upside: 8.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $347.00 ▲(4.99% Upside)

Willis Towers Watson's overall stock score is bolstered by strong earnings call performance and stable technical indicators, despite concerns about valuation and financial performance challenges. The company's strategic focus and growth in key segments significantly contribute to its positive outlook.

Positive Factors

Financial Performance

Second-quarter cash EPS of $2.86 beat estimate, driven by slightly better-than-expected organic growth and margin expansion.

Segment Performance

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

Cash Flow

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

Earnings

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

Segment Growth

The Health, Wealth, Career segment's organic growth was only 3%, which was below the consensus of 5%.

Willis Towers Watson Business Overview & Revenue Model

Company Description

Willis Towers Watson (WTW) is a leading global advisory, broking, and solutions company that operates primarily in the risk management, insurance brokerage, and human capital and benefits sectors. The company provides a diverse range of services including risk consulting, insurance brokerage, employee benefits, and talent management solutions, helping clients manage risk, optimize benefits, and improve workforce performance. With a strong presence in over 140 countries, WTW leverages data analytics and technology to deliver innovative solutions to a wide array of industries.

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 shows strengths in gross profit margins and cash flow generation. Challenges include declining revenue growth, profitability issues, and decreasing stockholder equity, which are potential risks.

Income Statement

The company's TTM data shows a decline in revenue and a negative net income, indicating profitability challenges. Gross profit margin stands at 52.7%, which is robust. However, EBIT and EBITDA margins are declining, reflecting cost pressures. Revenue growth is negative compared to the previous annual period, highlighting a concerning trend.

Balance Sheet

The balance sheet displays moderate financial leverage with a debt-to-equity ratio of approximately 0.65, suggesting manageable debt levels. The equity ratio is 29%, which provides a cushion against liabilities. However, declining stockholder equity over time could pose risks if not addressed.

Cash Flow

The cash flow statement shows strong free cash flow generation, with a positive free cash flow to net income ratio despite net losses. Operating cash flow remains positive, indicating good cash management practices. However, fluctuations in cash flow due to financing activities could impact liquidity.

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	9.35B
Gross Profit	3.46B	4.43B	4.14B	3.62B	4.55B	3.73B
EBITDA	3.17B	823.00M	2.02B	1.88B	2.40B	2.38B
Net Income	137.00M	-98.00M	1.05B	1.01B	2.16B	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	1.96B	1.89B	1.42B	1.26B	4.69B	2.09B
Total Debt	5.26B	5.93B	5.94B	5.47B	5.47B	6.71B
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	-434.00M

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 330.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 330.5 is above the 20-day moving average (MA) of 318.29, above the 50-day MA of 309.20, and above the 200-day MA of 314.67, indicating a bullish trend. The MACD of 6.60 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 75.75 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	$78.99B	30.67	37.99%	0.77%	18.42%	-4.44%
ERIE	76 Outperform	$17.14B	31.03	31.14%	1.47%	12.19%	17.82%
WTW	70 Outperform	$32.19B	230.62	1.57%	1.09%	1.27%	-84.75%
AJG	68 Neutral	$75.23B	44.23	9.49%	0.85%	15.03%	28.86%
MMC	67 Neutral	$101.76B	24.85	28.33%	1.61%	9.22%	3.05%
BRO	66 Neutral	$31.38B	27.43	11.27%	0.63%	11.68%	-0.17%
Sector *	63 Neutral	€14.33B	9.78	3.42%	3.56%	11.01%	-28.94%

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.