📊 WTW Key Takeaways
Is Willis Towers Watson PLC (WTW) a Good Investment?
Willis Towers Watson exhibits deteriorating fundamental health with negative operating cash flow (-$10M) and negative free cash flow (-$65M) despite positive accrual-based profits, indicating the company is not converting earnings into tangible cash generation. Combined with critically poor capital efficiency metrics (ROE 3.7%, ROA 1.0%), stagnant revenue growth (2.0% YoY), and declining net income (-0.5% YoY), the business model is failing to generate adequate returns on $8B of shareholder equity.
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.
Willis Towers Watson PLC Key Strengths (WTW)
- Operating margin of 18.6% demonstrates profitable service operations on accrual basis
- Interest coverage ratio of 5.8x provides adequate debt service capacity
- Moderate leverage at 0.79x debt-to-equity with stable $29.6B asset base
- 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
- Negative operating cash flow and free cash flow indicate fundamental inability to convert profitability into cash generation, unsustainable long-term
- Critically low ROE (3.7%) and ROA (1.0%) reveal severe capital inefficiency and poor returns on shareholder equity
- $6.3B debt burden combined with negative cash generation creates financial stress and limits flexibility for shareholder returns or investments
- 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
- Operating cash flow - must return to positive to validate business model sustainability
- Working capital changes - investigate drivers of OCF deterioration to determine if temporary or structural
- Revenue growth trajectory and net margin - flat/declining metrics suggest competitive or operational headwinds requiring reversal
- 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 |
|---|---|---|---|
| Q1 2026 | $2.2B | $235.0M | $2.33 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTW's key strengths?
Claude: Operating margin of 18.6% demonstrates profitable service operations on accrual basis. Interest coverage ratio of 5.8x provides adequate debt service capacity. 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: Negative operating cash flow and free cash flow indicate fundamental inability to convert profitability into cash generation, unsustainable long-term. Critically low ROE (3.7%) and ROA (1.0%) reveal severe capital inefficiency and poor returns on shareholder equity. 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 $2.4B.
Does WTW pay dividends?
Willis Towers Watson PLC pays dividends, with $88.0M 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 $3.10.
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 grade reflects both perspectives for balanced insights.
What is WTW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Willis Towers Watson PLC has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WTW stock overvalued or undervalued?
Valuation metrics for WTW: ROE of 3.7% (sector avg: 12%), net margin of 12.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is WTW's AI grade for 2026?
Our dual AI analysis gives Willis Towers Watson PLC a combined C grade 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 $-10.0M, with capital expenditures of $55.0M. FCF margin is -2.7%.
How does WTW compare to other Finance stocks?
Vs Finance sector averages: Net margin 12.3% (avg: 25%), ROE 3.7% (avg: 12%), current ratio 1.19 (avg: 1.2).