Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $30.93B
• Dividend Yield: 1.13%
• Average Volume (3M): 589.61K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 3.07
• Shares Outstanding: 95,748,610
• 10 Day Avg. Volume: 829,306
• 30 Day Avg. Volume: 589,605
• PEG Ratio: 2.98
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 25.22
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.87
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $365.41
• Price Target Upside: 13.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 16.97
• Revenue Forecast (FY): $9.63B

• Rating: 69 Neutral
• Price Target: $344.00 ▲(6.77% Upside)

Willis Towers Watson's strong financial performance and positive earnings call sentiment are the most significant factors supporting the stock score. However, bearish technical indicators and moderate valuation metrics slightly offset these strengths.

Positive Factors

Strong Financial Performance

WTW's robust financial performance with consistent organic growth and margin expansion indicates effective strategic execution and operational efficiency, supporting long-term profitability.

Cash Flow Generation

Strong cash flow generation enhances WTW's financial flexibility, enabling investments in growth opportunities and shareholder returns, crucial for sustaining long-term business health.

Innovative Product Launches

The introduction of new products like Radar 5 and Gemini strengthens WTW's competitive edge by leveraging technology for better client solutions, fostering long-term market position.

Negative Factors

Insurance Pricing Headwinds

Declining insurance rates pose a challenge to revenue growth in WTW's insurance segments, potentially impacting profitability and requiring strategic adjustments to maintain margins.

Weak Consulting Environment

Cautious client spending on technology projects could dampen growth in WTW's consulting segment, affecting revenue diversification and necessitating adaptation to client needs.

Challenges in Risk & Broking Margin Expansion

The challenging pricing environment in risk and broking may hinder margin expansion, requiring strategic initiatives to sustain growth and profitability in this core segment.

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	5.21B	4.43B	4.14B	3.62B	4.55B	3.76B
EBITDA	3.34B	823.00M	2.02B	1.88B	2.07B	2.15B
Net Income	2.12B	-98.00M	1.05B	1.01B	4.22B	996.00M
Balance Sheet
Total Assets	27.44B	27.68B	29.09B	31.77B	34.97B	38.53B
Cash, Cash Equivalents and Short-Term Investments	1.90B	1.89B	1.42B	1.26B	4.69B	2.04B
Total Debt	5.24B	5.93B	5.94B	5.48B	5.49B	6.72B
Total Liabilities	19.63B	19.66B	19.50B	21.68B	21.66B	27.60B
Stockholders Equity	7.74B	7.94B	9.52B	10.02B	13.26B	10.82B
Cash Flow
Free Cash Flow	1.63B	1.27B	1.10B	608.00M	1.86B	1.49B
Operating Cash Flow	1.60B	1.51B	1.34B	812.00M	2.06B	1.77B
Investing Cash Flow	1.01B	250.00M	-1.08B	-173.00M	2.77B	-160.00M
Financing Cash Flow	-1.98B	-459.00M	-1.20B	-3.44B	-3.11B	378.00M

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.20
• 50DMA: Negative
• 100DMA: Negative
• 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 322.2 is below the 20-day moving average (MA) of 327.27, below the 50-day MA of 332.71, and above the 200-day MA of 320.47, indicating a neutral trend. The MACD of -4.58 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 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
BRO	71 Outperform	$26.97B	23.71	10.47%	0.80%	17.87%	-9.35%
MMC	71 Outperform	$88.43B	21.65	28.62%	1.94%	10.57%	2.57%
ERIE	70 Outperform	$13.48B	23.53	30.44%	1.89%	9.64%	15.87%
WTW	69 Neutral	$30.93B	15.42	27.79%	1.13%	―	―
AJG	69 Neutral	$64.54B	40.09	9.05%	0.97%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$73.44B	27.37	38.33%	0.86%	14.06%	5.52%

Willis Towers Watson Corporate Events

Willis Towers Watson’s Earnings Call Highlights Strong Growth Amid Challenges

Willis Towers Watson’s recent earnings call reflected a generally positive sentiment, underscored by strong financial results, strategic execution, and successful product launches. Despite these achievements, the company acknowledged challenges such as insurance pricing headwinds and a cautious consulting environment.

WTW Reports Strong Q3 2025 Earnings Growth

Willis Towers Watson Public Limited Company (WTW) is a global advisory, broking, and solutions firm that provides data-driven, insight-led solutions in the areas of people, risk, and capital, serving clients in 140 countries.

Willis Towers Watson Secures $1.5 Billion Credit Facility

On October 17, 2025, Willis Towers Watson and its subsidiaries entered into a $1.5 billion revolving credit facility set to mature in 2030. This facility, managed by Barclays Bank PLC, will refinance existing obligations and support various corporate purposes, with terms including interest rates tied to WTW’s debt rating and specific covenants and prepayment conditions.

The most recent analyst rating on (WTW) stock is a Hold with a $356.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.