📊 WTW Key Takeaways
Is Willis Towers Watson PLC (WTW) a Good Investment?
Willis Towers Watson demonstrates solid operational performance with strong profitability margins (23% operating, 16.5% net) and healthy return on equity of 20.1%, supported by consistent free cash flow generation of $1.5B. The company maintains reasonable financial leverage with 8.6x interest coverage and adequate liquidity, though elevated debt levels and modest revenue growth of 2% YoY warrant monitoring.
Willis Towers Watson shows solid core fundamentals, with strong operating profitability, healthy free cash flow generation, and adequate interest coverage. However, revenue growth is modest at 2.0% and net income was essentially flat year over year, which suggests the business is stable rather than accelerating. Overall, the company appears financially sound, but the growth profile and leverage level keep the fundamental outlook balanced instead of clearly bullish.
Why Buy Willis Towers Watson PLC Stock? WTW Key Strengths
- Strong operating margin of 23% and net margin of 16.5% demonstrates operational efficiency and pricing power
- Excellent return on equity of 20.1% and solid free cash flow of $1.5B provide financial flexibility
- Robust interest coverage ratio of 8.6x indicates strong debt servicing capacity
- Adequate liquidity position with $3.1B in cash and 1.20x current ratio
- Strong profitability, including a 23.0% operating margin and 16.5% net margin
- Consistent cash generation, with $1.55B in free cash flow and a 15.9% FCF margin
- Reasonable financial resilience, supported by a 1.20x current ratio and 8.6x interest coverage
WTW Stock Risks: Willis Towers Watson PLC Investment Risks
- Significant debt load of $9.7B with debt-to-equity ratio of 1.21x limits financial flexibility
- Anemic revenue growth of only 2% YoY suggests limited organic growth momentum
- Net income declined 0.5% YoY despite revenue growth, indicating margin pressure
- High insider trading activity (40 Form 4 filings in 90 days) warrants scrutiny for motivations
- Top-line growth is modest, with revenue up only 2.0% year over year
- Net income declined slightly year over year, indicating limited earnings momentum
- Leverage is meaningful, with $9.69B of long-term debt and a 1.21x debt-to-equity ratio
Key Metrics to Watch
- Revenue growth acceleration and segment performance
- Operating margin sustainability and cost control
- Debt reduction progress and refinancing needs
- Free cash flow conversion and capital allocation discipline
- Organic revenue growth and margin expansion
- Free cash flow conversion and debt reduction
Willis Towers Watson PLC (WTW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Willis Towers Watson PLC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WTW Profit Margin, ROE & Profitability Analysis
WTW vs Finance Sector: How Willis Towers Watson PLC Compares
How Willis Towers Watson PLC compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Willis Towers Watson PLC Stock Overvalued? WTW Valuation Analysis 2026
Based on fundamental analysis, Willis Towers Watson PLC has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Willis Towers Watson PLC Balance Sheet: WTW Debt, Cash & Liquidity
WTW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Willis Towers Watson PLC's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $9.95 reflects profitable operations.
WTW Revenue Growth, EPS Growth & YoY Performance
WTW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.2B | $304.0M | $3.11 |
| Q2 2025 | $2.2B | $141.0M | $1.36 |
| Q1 2025 | $2.2B | $190.0M | $1.83 |
| Q3 2024 | $2.1B | $136.0M | $1.29 |
| Q2 2024 | $2.1B | $94.0M | $0.88 |
| Q1 2024 | $2.2B | $190.0M | $1.83 |
| Q3 2023 | $1.9B | $136.0M | $1.29 |
| Q2 2023 | $2.0B | $94.0M | $0.88 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Willis Towers Watson PLC Dividends, Buybacks & Capital Allocation
WTW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Willis Towers Watson PLC (CIK: 0001140536)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WTW
What is the AI rating for WTW?
Willis Towers Watson PLC (WTW) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTW's key strengths?
Claude: Strong operating margin of 23% and net margin of 16.5% demonstrates operational efficiency and pricing power. Excellent return on equity of 20.1% and solid free cash flow of $1.5B provide financial flexibility. ChatGPT: Strong profitability, including a 23.0% operating margin and 16.5% net margin. Consistent cash generation, with $1.55B in free cash flow and a 15.9% FCF margin.
What are the risks of investing in WTW?
Claude: Significant debt load of $9.7B with debt-to-equity ratio of 1.21x limits financial flexibility. Anemic revenue growth of only 2% YoY suggests limited organic growth momentum. ChatGPT: Top-line growth is modest, with revenue up only 2.0% year over year. Net income declined slightly year over year, indicating limited earnings momentum.
What is WTW's revenue and growth?
Willis Towers Watson PLC reported revenue of $9.7B.
Does WTW pay dividends?
Willis Towers Watson PLC pays dividends, with $358.0M distributed to shareholders in the trailing twelve months.
Where can I find WTW SEC filings?
Official SEC filings for Willis Towers Watson PLC (CIK: 0001140536) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WTW's EPS?
Willis Towers Watson PLC has a diluted EPS of $16.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WTW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Willis Towers Watson PLC has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WTW stock overvalued or undervalued?
Valuation metrics for WTW: ROE of 20.1% (sector avg: 12%), net margin of 16.5% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy WTW stock in 2026?
Our dual AI analysis gives Willis Towers Watson PLC a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WTW's free cash flow?
Willis Towers Watson PLC's operating cash flow is $1.8B, with capital expenditures of $229.0M. FCF margin is 15.9%.
How does WTW compare to other Finance stocks?
Vs Finance sector averages: Net margin 16.5% (avg: 25%), ROE 20.1% (avg: 12%), current ratio 1.20 (avg: 1.2).