TW  Towers Watson & Co

Exchange

NYSE

Sector

Consumer Services

Industry

Professional Services

Market Cap.

8.54B

Vuru Grade

60.72/100

Current Price

$123.00
+0.00 (+0.00%)

Growth Price

$113.34
Overvalued by 7.86%

Stability Price

$84.66
Overvalued by 31.17%

Company Metrics

  • P/E 20.09
  • P/S 2.33
  • P/B 2.86
  • EPS 6.12
  • Cash ROIC 10.06%
  • Cash Ratio 0.74
  • Dividend 0.6 / 0%
  • Avg. Vol. 692,452.00
  • Shares 69.43M
  • Market Cap. 8.54B

Company Description

Towers Watson & Co. operates as a global professional services company that helps organizations to improve performance through people, risk, and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Its benefits solutions cover health and group benefits, mergers and acquisitions, retirement, and technology... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Willis Towers Watson Public Limited Company (WLTW) Position Boosted by Toronto ...
Week Herald - Aug 9, 2017
Willis Towers Watson Public Limited logo Toronto Dominion Bank lifted its holdings in shares of Willis Towers Watson Public Limited Company (NASDAQ:WLTW) by 25.2% in the second quarter, according to the company in its most recent disclosure with the ...
Raymond James Financial Services Advisors Inc. Has $18.82 Million Position in ... - StockNewsTimes
EPS for Willis Towers Watson PLC (WLTW) Expected At $1.13; Sanmina (SANM) Had ... - Herald KS
Top insurance brokers, No. 3: Willis Towers Watson PLC
Business Insurance - Jul 3, 2017
Eighteen months after one the largest mergers in the insurance broking and consulting sector, Willis Towers Watson P.L.C. is looking to switch from integrating two distinct businesses to growing as a unified company. The $18 billion deal, which brought ...
Willis Towers Watson recruits new CFO
Business Insurance - Aug 21, 2017
Arlington, Virginia-based Mr. Millay, aged 60, was chief financial officer for Towers Watson & Co. prior to the consultant's merger with Willis Group Holdings P.L.
Willis Towers Watson (WLTW) Appoints Michael Burwell as New CFO - StreetInsider.com
Aon sues Willis Towers Watson, new CFO over breaking non-compete agreement
Pensions & Investments - Sep 29, 2017
The lawsuit says Mr. Burwell began negotiations for his new job at Willis Towers Watson without informing Aon, while still receiving confidential information from the company. The information he received included a planned restructuring of Aon's ...
BRIEF-Willis Towers Watson and Aon reach agreement on CFO dispute
Reuters - Oct 4, 2017
Says co, Aon resolved dispute regarding hiring of Michael “Mike” J. Burwell as new chief financial officer of Willis Towers Watson. * Says co, Aon resolved their dispute regarding hiring of Michael “Mike” J. Burwell as new CFO of Willis Towers Watson ...
Towers Watson & Co - Receive News & Ratings Daily
TrueBlueTribune - Oct 15, 2017
Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Towers Watson & Co and related companies with MarketBeat.com's FREE daily ratings newsletter.
Towers Watson & Co (TW) Receiving Somewhat Positive News Coverage, Analysis Finds
The Ledger Gazette - Oct 21, 2017
Towers Watson & Co logo Press coverage about Towers Watson & Co (NASDAQ:TW) has been trending somewhat positive recently, according to Accern.
Willis Towers Watson Public Limited Company (NASDAQ:WLTW) Rating Reiterated by ...
The Ledger Gazette - 15 hours ago
Willis Towers Watson Public Limited logo Willis Towers Watson Public Limited Company (NASDAQ:WLTW)'s stock had its “buy” rating reaffirmed by stock analysts at Keefe, Bruyette & Woods in a report released on Thursday, October 12th.
Willis Towers Watson Public Limited Company (WLTW) Director Sells $8694080.68 ... - Dispatch Tribunal
Towers Watson & Co (TW) Earns Coverage Optimism Rating of 0.22
The Ledger Gazette - Sep 27, 2017
Towers Watson & Co logo Press coverage about Towers Watson & Co (NASDAQ:TW) has been trending somewhat positive recently, Accern Sentiment Analysis reports.
Avis Budget Group Inc. (CAR) EPS Estimated At $3.00; Towers Watson & Co (TW ...
Bibeypost.com - 17 hours ago
Analysts expect Avis Budget Group Inc. (NASDAQ:CAR) to report $3.00 EPS on November, 1.They anticipate $0.53 EPS change or 21.46% from last quarter's $2.47 EPS.
Diamond Hill Capital Management Upped Avis Budget Group (CAR) Stake; Badger ... - Key Gazette
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TW to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TW's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$123.00 Current Price

$113.34 Growth Price (DCF)

Overvalued by 7.86%


Growth Rate Assumed by Market: 16.98%


Future Free Cash Flow Growth Rate: 13.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$84.66 Stability Price (EPV)

Overvalued by 31.17%


Discount Rate: 15.0%

$97.74 Book Price

Overvalued by 20.53%


Satisfactory Cash Return on Invested Capital over the past 5 years

TW has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely TW could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

TW has created $10.06 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20112012201320142015
Free Cash Flow 441.89M 157.44M 403.34M 335.27M 438.29M
divided by
Invested Capital 3.35B 3.74B 3.63B 3.74B 3.42B
Cash ROIC 13.20% 4.21% 11.11% 8.96% 12.81%

Growing Return on Equity over the past 5 years

TW has been growing returns with capital that shareholders have invested. This is a positive sign and demonstrates that both the business and management performance are improving over time.

TW has generated $10.96 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20112012201320142015
Net Income 194.44M 260.48M 315.65M 366.31M 385.63M
divided by
Stockholders' Equity 2.59B 2.43B 2.72B 3.10B 2.93B
Return on Equity 7.50% 10.71% 11.59% 11.83% 13.15%

Excellent Business Performance over the past 10 years

TW has been able to maintain profitability in good times and bad. This could mean TW has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

TW has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Free Cash Flow 103.32M 100.83M 223.13M 164.98M -80.25M 441.89M 157.44M 403.34M 335.27M 438.29M

Good Balance Sheet

TW's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Cash 165.35M 248.19M 124.63M 209.83M 651.48M 572.61M 518.62M 589.45M 850.61M 842.31M
Current Assets 493.65M 636.76M 557.49M 565.60M 1.45B 1.65B 1.76B 1.71B 1.81B 1.84B
Total Assets 1.24B 1.53B 1.72B 1.63B 4.57B 5.10B 5.36B 5.33B 5.63B 5.39B
Current Liabilities 296.34M 310.41M 385.25M 337.14M 965.61M 1.18B 1.10B 1.11B 1.03B 1.13B
Total Liabilities 591.60M 742.19M 731.58M 772.68M 2.62B 2.51B 2.92B 2.61B 2.53B 2.46B
Stockholder' Equity 648.76M 787.52M 984.40M 853.64M 1.96B 2.59B 2.43B 2.72B 3.10B 2.93B
Current Ratio 1.67 2.05 1.45 1.68 1.50 1.40 1.60 1.54 1.75 1.62
TL-to-TA 0.48 0.49 0.43 0.48 0.57 0.49 0.55 0.49 0.45 0.46

Consistent Reinvestment of Profits over the past 10 years

TW has consistently retained profits. This may put TW in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, TW can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Retained Earnings 242.60M 336.10M 474.96M 608.63M 711.57M 883.16M 1.12B 1.39B 1.72B 2.07B
Retained Earnings Growth - 38.54% 41.31% 28.14% 16.91% 24.11% 26.55% 24.77% 23.56% 19.92%

Competitive Industry over the past 10 years

TW is likely operating in an industry with medium to low barriers to entry. This may mean that TW doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that TW invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.08 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Net Income 87.19M 116.28M 155.44M 146.46M 120.60M 194.44M 260.48M 315.65M 366.31M 385.63M
divided by
Revenue 1.27B 1.49B 1.76B 1.68B 2.39B 3.26B 3.42B 3.60B 3.48B 3.64B
Net Profit Margin 6.86% 7.82% 8.83% 8.74% 5.05% 5.97% 7.62% 8.78% 10.52% 10.58%

Varying Pricing Power over the past 10 years

TW has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$79.60 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Gross Profit 1.19B 581.01M 683.92M 1.58B 2.11B 2.87B 2.99B 3.18B 3.09B 3.24B
divided by
Revenue 1.27B 1.49B 1.76B 1.68B 2.39B 3.26B 3.42B 3.60B 3.48B 3.64B
Gross Margin 93.38% 39.09% 38.86% 94.29% 88.55% 88.02% 87.53% 88.51% 88.87% 88.86%

Medium Capital Intensity over the past 10 years

TW has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

47.24% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Capital Expenditure 65.80M 66.28M 60.60M 62.57M 45.38M 99.35M 158.62M 127.97M 120.82M 135.23M
divided by
Net Income 87.19M 116.28M 155.44M 146.46M 120.60M 194.44M 260.48M 315.65M 366.31M 385.63M
Capital Expenditure Ratio 75.47% 57.01% 38.98% 42.72% 37.63% 51.09% 60.90% 40.54% 32.98% 35.07%

Very Strong Dividend History over the past 10 years

TW has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests TW is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Dividend Paid 12.67M 12.72M 12.77M 12.79M 15.25M 21.60M 26.45M 48.15M 21.06M 41.80M
divided by
Shares Outstanding 43.30M 44.68M 44.38M 42.86M 59.37M 74.14M 72.54M 71.56M 70.96M 70.01M
Dividend Paid Per Share 0.29 0.28 0.29 0.30 0.26 0.29 0.36 0.67 0.30 0.60
Price at Year End 43.77 45.68 46.12 47.14 52.83 59.93 56.10 126.59 115.16 129.39
Dividend Yield 0.67% 0.62% 0.62% 0.63% 0.49% 0.49% 0.65% 0.53% 0.26% 0.46%

Strong History of Stock Buybacks over the past 10 years

TW has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2006200720082009201020112012201320142015
Shares Outstanding 43.30M 44.68M 44.38M 42.86M 59.37M 74.14M 72.54M 71.56M 70.96M 70.01M
Stock Bought Back - -3.10% 0.68% 3.55% -27.81% -19.92% 2.20% 1.38% 0.85% 1.35%
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