Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $31.84B
• Dividend Yield: 1.14%
• Average Volume (3M): 665.04K
• Price to Earnings (P/E): 15.9
• 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: 746,609
• 30 Day Avg. Volume: 665,043
• 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: 1.19
• Enterprise Value/Revenue: 3.87
• Enterprise Value/Gross Profit: 8.91
• Enterprise Value/Ebitda: 11.25
• 1Y Price Target: $363.23
• Price Target Upside: 10.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 16.97
• Revenue Forecast (FY): $9.63B

• Rating: 75 Outperform
• Price Target: $362.00 ▲(9.81% Upside)

Willis Towers Watson demonstrates strong financial performance and strategic execution, supported by robust earnings growth and a promising acquisition. While technical indicators are mixed, the company's valuation is reasonable, and the positive outlook from the earnings call and corporate events bolster confidence in its future prospects.

Positive Factors

Strategic Acquisitions

The acquisition of Newfront enhances WTW's presence in high-growth specialties and improves operational efficiency, supporting long-term growth.

Cash Flow Generation

Strong cash flow growth provides financial flexibility and supports investments in growth opportunities, enhancing long-term business stability.

Innovative Product Launches

New product launches strengthen WTW's competitive edge by improving service offerings, driving client engagement, and supporting revenue growth.

Negative Factors

Insurance Pricing Headwinds

Declining insurance rates can pressure revenue and margins, challenging WTW's ability to maintain profitability in the long term.

Weak Consulting Environment

Cautious client spending in consulting limits growth potential, impacting revenue and margin expansion in this segment over time.

Rising Leverage Concerns

Increasing leverage could strain financial flexibility and risk profile, potentially affecting WTW's ability to invest in future growth.

Willis Towers Watson Business Overview & Revenue Model

Company Description

Willis Towers Watson (WTW) is a global advisory, broking, and solutions company that provides a range of services in risk management, insurance brokerage, and consulting across various sectors. With a focus on helping clients effectively manage their risks and optimize their performance, WTW operates in several key areas including human capital and benefits, risk management, and insurance solutions. The company leverages data and analytics to deliver innovative solutions tailored to the specific needs of their clients, which include corporations, governments, and institutions worldwide.

How the Company Makes Money

WTW generates revenue primarily through three key segments: Risk and Insurance Services, Human Capital and Benefits, and Investment, Risk and Reinsurance. The Risk and Insurance Services segment earns revenue by providing insurance brokerage services, risk management consulting, and insurance program design, often charging clients a percentage of the premiums they place. In the Human Capital and Benefits segment, WTW earns fees for consulting services related to talent management, employee benefits, and health and wellness programs. The Investment, Risk and Reinsurance segment derives income from advisory services related to investment strategy and risk management, as well as reinsurance brokerage services. Additionally, WTW benefits from strategic partnerships with various financial institutions and technology providers, which enhance its service offerings and expand its market reach, further contributing to its revenue growth.

Willis Towers Watson Financial Statement Overview

Summary

Willis Towers Watson exhibits a strong financial profile with solid profitability and cash flow generation, despite facing some revenue growth challenges. The company's balance sheet is stable, though leverage levels should be monitored.

Income Statement

Willis Towers Watson's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains strong profitability with a net profit margin of 21.58% and an EBIT margin of 25.54%. The gross profit margin has decreased compared to previous years, suggesting some pressure on cost management. Overall, the company demonstrates solid profitability despite recent revenue challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio stands at 0.68, indicating a manageable level of leverage. Return on equity is strong at 26.53%, showcasing effective use of equity to generate profits. However, the equity ratio has been declining, suggesting a potential risk if leverage increases further. Overall, the balance sheet is stable but warrants monitoring of leverage levels.

Cash Flow

Cash flow analysis reveals a positive trajectory, with a 14.61% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio exceeds 1, indicating strong cash generation relative to profits. This robust cash flow performance supports the company's financial flexibility and ability to invest in growth opportunities.

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	4.25B	4.43B	4.14B	3.80B	3.75B	3.46B
EBITDA	3.37B	823.00M	2.02B	2.03B	3.55B	2.02B
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	1.93B	1.89B	1.42B	1.26B	4.69B	2.04B
Total Debt	5.91B	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: 329.65
• 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 329.65 is above the 20-day moving average (MA) of 322.59, above the 50-day MA of 324.08, and above the 200-day MA of 320.07, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 83.20 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	$27.38B	24.06	10.47%	0.76%	17.87%	-9.35%
WTW	75 Outperform	$31.84B	15.87	27.79%	1.14%	―	―
MMC	71 Outperform	$90.49B	22.15	28.62%	1.86%	10.57%	2.57%
ERIE	70 Outperform	$13.22B	23.08	30.44%	1.90%	9.64%	15.87%
AJG	69 Neutral	$65.07B	40.31	9.05%	1.03%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$75.24B	28.03	38.33%	0.82%	14.06%	5.52%

Willis Towers Watson Corporate Events

Willis Towers Watson Prices $1 Billion Notes Offering

On December 15, 2025, Willis North America Inc., a subsidiary of Willis Towers Watson, announced the pricing of a $1 billion offering of senior unsecured notes, with $700 million due in 2031 and $300 million due in 2036. The proceeds are intended to fund the Newfront acquisition and repay existing debt, with the offering not contingent on the acquisition’s closure.

Willis Towers Watson to Acquire Newfront Insurance

On December 10, 2025, Willis Towers Watson (WTW) announced a definitive agreement to acquire Newfront Insurance Holdings, Inc., a San Francisco-based broker, for $1.3 billion. This acquisition, expected to close in the first quarter of 2026, will enhance WTW’s presence in the U.S. middle market and high-growth specialties such as technology, fintech, and life sciences. The integration of Newfront’s innovative technology and AI capabilities will complement WTW’s existing investments, accelerating its technology strategy and improving operational efficiency. The transaction is anticipated to be slightly dilutive to WTW’s adjusted EPS in 2026 but accretive in 2027, with expected cost synergies of $35 million by 2028.

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.