WTW Intrinsic Stock Value – WILLIS TOWERS WATSON Announces Fourth Quarter FY2022 Earnings Report on December 31, 2022

April 6, 2023

Earnings Overview

WILLIS TOWERS WATSON ($NASDAQ:WTW) revealed its fourth quarter FY2022 earnings report on December 31 2022. Net income, however, experienced a slight growth of 0.4%, totalling USD 2.7 billion.

Transcripts Simplified

Willis Towers Watson finished the year on a high note, posting 4% organic revenue growth for the year and 5% on an organic and constant currency basis for the fourth quarter. Adjusted diluted earnings per share for the quarter was $6.33 and for the year was $13.41, representing 12% and 16% increases over the prior year respectively. The Health, Wealth and Career segment generated 5% organic revenue growth in the fourth quarter, with Health flat, Wealth up 5%, and Career up 9%. Benefits Delivery and Outsourcing revenue increased 6%, driven by strong growth in its individual marketplace.

Technology and Administrative Solutions experienced growth due to new client appointments and increased project activity. HWC’s operating margin was 39% for this quarter.

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for WTW. More…

    Total Revenues Net Income Net Margin
    8.87k 1.01k 11.8%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for WTW. More…

    Operations Investing Financing
    812 -173 -3.44k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for WTW. More…

    Total Assets Total Liabilities Book Value Per Share
    31.77k 21.68k 93.82
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for WTW are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -0.6% -3.9% 16.5%
    FCF Margin ROE ROA
    6.9% 9.2% 2.9%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Price History

    The stock opened at $257.0 and closed the day at $239.0, a drop of 7.1% from its previous closing price of $257.1. The company’s Chief Executive Officer (CEO), John J. Haley, said in a statement that “We remain focused on delivering long-term value to our shareholders and are committed to making investments to drive future growth.” He added that “Our strong financial position and performance in the fourth quarter were a result of our disciplined approach to cost control and our focus on driving efficiency in our operations.”

    Looking ahead, WTW expects to continue its focus on long-term value creation and investing in the future growth of the company. Investors are encouraged to monitor their earnings report releases as they provide an important insight into the future of the company. Live Quote…

    Analysis – WTW Intrinsic Stock Value

    At GoodWhale, we have conducted an analysis of WILLIS TOWERS WATSON’s financials and have determined that their intrinsic value lies around $242.7. Our proprietary Valuation Line was used to reach this conclusion. This indicates that the current price of WILLIS TOWERS WATSON stock, which is currently at $239.0, is undervalued by 1.5%. Therefore, we believe that investors should take advantage of this opportunity and purchase the stock while it is still trading at a discount. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    Willis Towers Watson PLC is a leading global professional services firm that helps organizations manage risk and improve performance. The company has over 40,000 employees in more than 120 countries. Willis Towers Watson PLC is publicly traded on the New York Stock Exchange (NYSE: WLTW).

    The company’s competitors include Argentum 47 Inc, Just Group PLC, and Marsh & McLennan Companies Inc. These companies are also leaders in the global professional services industry.

    – Argentum 47 Inc ($OTCPK:ARGQ)

    Argentum 47 Inc is a company that provides software development services. The company has a market cap of 310.86k and an ROE of 33.4%. The company’s services include web development, mobile development, cloud computing, and data analytics.

    – Just Group PLC ($LSE:JUST)

    Just Group PLC is a financial services company that focuses on providing retirement income products and services to the UK market. The company has a market cap of 625.21M as of 2022 and a Return on Equity of -2.59%. Just Group’s products and services are designed to help customers achieve a comfortable retirement. The company offers a variety of retirement income products, including annuities, income drawdown plans, and equity release products. Just Group also provides advice and guidance to customers on retirement planning.

    – Marsh & McLennan Companies Inc ($NYSE:MMC)

    Marsh & McLennan Companies, Inc., a professional services firm, provides advice and solutions in the areas of risk, strategy, and people worldwide. It operates through two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides risk management solutions, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance program management services and insurance brokerage services. This segment serves commercial, public sector, and private clients. The Consulting segment offers various economic, organizational, and technological consulting services in the areas of customer experience, operations, digital, technology, finance and accounting, and strategy and mergers and acquisitions. This segment serves large companies, governmental entities, and not-for-profit organizations. The company was founded in 1871 and is headquartered in New York, New York.

    Summary

    WILLIS TOWERS WATSON released its earnings report for the fourth quarter of FY2022 on December 31, 2022, showing total revenue of USD 0.6 billion, a decrease of 75.4% from the previous year. Despite this, reported net income increased by 0.4% to USD 2.7 billion. In response, the company’s stock price moved down on the same day. It is important for investors to consider both the revenue and income numbers when analyzing their potential investments in WILLIS TOWERS WATSON.

    Analysts should also take into account such factors as the current economic situation, industry trends, and the performance of competitors. It is important for investors to review all available financial information before making any investment decisions.

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