Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $33.51B
• Dividend Yield: 1.06%
• Average Volume (3M): 525.11K
• Price to Earnings (P/E): 240.1
• Beta (1Y): 0.32
• Revenue Growth: 1.27%
• EPS Growth: -84.75%
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 2.86
• Shares Outstanding: 97,547,990
• 10 Day Avg. Volume: 573,461
• 30 Day Avg. Volume: 525,106
• 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: 1.03
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $364.07
• Price Target Upside: 6.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $362.00 ▲(5.88% 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

Strong Cash Flow Generation

WTW's significant improvement in cash generation indicates robust financial health, providing flexibility for investments and debt management.

Operational Efficiency

The integration of AI enhances operational efficiency and client satisfaction, positioning WTW for sustained competitive advantage in service delivery.

Organic Growth

Consistent organic growth across key segments reflects strong market demand and effective strategic execution, supporting long-term revenue stability.

Negative Factors

Revenue Decline

A decline in revenue growth suggests challenges in maintaining sales momentum, which could impact future profitability and market position.

Low Net Profit Margin

The low net profit margin indicates difficulties in converting revenue into profit, potentially affecting long-term financial sustainability.

Flat Revenue in Key Segment

Flat revenue in a core segment highlights challenges in adapting to market conditions, which may hinder growth and competitive positioning.

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 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: 341.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 341.89 is above the 20-day moving average (MA) of 333.15, above the 50-day MA of 326.43, and above the 200-day MA of 317.95, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 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	30.93B	26.72	15.43%	0.64%	11.68%	-0.17%
AON	75 Outperform	76.78B	29.44	33.19%	0.80%	18.42%	-4.44%
AJG	75 Outperform	77.98B	45.68	7.13%	0.84%	15.03%	28.86%
ERIE	70 Outperform	14.72B	26.38	30.21%	1.70%	12.19%	17.82%
MMC	67 Neutral	98.11B	23.76	26.17%	1.68%	9.22%	3.05%
WTW	65 Neutral	$33.51B	240.06	1.57%	1.06%	1.27%	-84.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.