Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $30.61B
• Dividend Yield: 1.17%
• Average Volume (3M): 695.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 2.42%
• EPS Growth: -103.64%
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Brokers
• EPS (TTM): 3.13
• Shares Outstanding: 99,149,790
• 10 Day Avg. Volume: 689,568
• 30 Day Avg. Volume: 695,013
• PEG Ratio: -0.58
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.05
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 2.71
• 1Y Price Target: $371.00
• Price Target Upside: 20.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $337.00 ▲(9.16%Upside)

WTW's overall score is driven by strong operational performance and strategic growth initiatives, despite challenges in profitability and valuation metrics. Technical indicators suggest stability, while earnings call insights highlight resilience amidst macroeconomic pressures.

Positive Factors

Operational Performance

The adjusted operating income margin of 21.6% exceeded consensus expectations, indicating strong operational performance.

Share Repurchase

Management has maintained a $1.5 billion share repurchase expectation for 2025, indicating potential acceleration in subsequent quarters.

Negative Factors

Earnings Miss

WTW reports 1Q25 operating EPS of $3.13, which is a miss compared to estimates.

Revenue Challenges

Revenue was slightly below consensus in both HWC and R&B segments, reflecting challenges in meeting sales expectations.

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

Willis Towers Watson makes money through a variety of revenue streams primarily centered on its advisory and broking services. The company earns fees and commissions from providing risk management and insurance brokerage services, which involve advising clients on insurance and reinsurance needs and facilitating the placement of insurance coverage. Additionally, WTW generates revenue from its human capital and benefits consulting services, where it offers advice on employee benefits, compensation, and talent management. Investment advisory services also contribute to WTW's earnings, as the company provides guidance on investment strategies and asset management. Significant partnerships with insurance carriers, multinational corporations, and other professional services firms further enhance WTW's ability to deliver comprehensive solutions to its clients.

Willis Towers Watson Financial Statement Overview

Summary

Willis Towers Watson exhibits strengths in gross profit margins and cash flow generation. However, challenges in revenue growth and profitability, along with declining stockholder equity, present potential risks. The company should focus on improving revenue trajectories and managing costs to enhance financial health.

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	5.17B	4.43B	4.14B	3.62B	4.55B	3.73B
EBITDA	3.25B	627.00M	2.02B	1.88B	2.40B	2.38B
Net Income	-53.00M	-98.00M	1.05B	1.01B	2.16B	996.00M
Balance Sheet
Total Assets	28.06B	27.68B	29.09B	31.77B	34.97B	38.53B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.89B	1.42B	1.26B	4.69B	2.09B
Total Debt	5.93B	5.93B	5.94B	5.47B	5.47B	6.71B
Total Liabilities	19.85B	19.66B	19.50B	21.68B	21.66B	27.60B
Stockholders Equity	8.13B	7.94B	9.52B	10.02B	13.26B	10.82B
Cash Flow
Free Cash Flow	1.46B	1.27B	1.10B	608.00M	1.86B	1.49B
Operating Cash Flow	1.45B	1.51B	1.34B	812.00M	2.06B	1.77B
Investing Cash Flow	240.00M	250.00M	-1.08B	-173.00M	2.77B	-160.00M
Financing Cash Flow	-1.99B	-459.00M	-1.20B	-3.44B	-3.11B	-434.00M

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 308.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 308.73 is above the 20-day moving average (MA) of 306.62, above the 50-day MA of 305.80, and below the 200-day MA of 312.10, indicating a neutral trend. The MACD of 0.98 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, 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
BRO	76 Outperform	$33.50B	28.76	16.18%	0.56%	12.57%	10.52%
ERIE	76 Outperform	$17.02B	31.34	32.38%	1.82%	15.05%	26.80%
Sector *	74 Outperform	15.39B	18.29	16.30%	216.87%	8.25%	25.93%
AON	71 Outperform	$77.01B	30.44	74.17%	0.78%	19.57%	-8.09%
AJG	71 Outperform	$79.59B	47.81	9.27%	0.81%	14.07%	31.44%
WTW	69 Neutral	$30.61B	―	-0.60%	1.17%	2.42%	-103.64%
MMC	67 Neutral	$103.14B	25.18	28.33%	1.61%	9.22%	3.05%

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.