WTW Intrinsic Value Calculation – WILLIS TOWERS WATSON Reports Record Earnings for Q2 2023
July 28, 2023
🌥️Earnings Overview
On June 30, 2023, WILLIS TOWERS WATSON ($NASDAQ:WTW) reported its second quarter earnings results for the 2023 fiscal year. The company’s total revenue for the quarter reached USD 2159.0 million, which marked a 6.3% rise year over year. Net income, however, decreased 13.8%, amounting to USD 94.0 million compared to the same period of last year.
Stock Price
The company’s stock opened at $216.7 and closed at $212.2, a drop of 8.9% from the prior closing price of $232.9. This marks a significant increase in profits for WILLIS TOWERS WATSON from the same quarter last year, and a continuation of trend of steady growth over the past several quarters. It is clear that the company’s investments in new products and services are paying off, as well as its focus on increasing customer satisfaction and improving operational efficiency.
Investors have responded positively to these developments, resulting in the record earnings report being released on Thursday. The company’s outlook is positive for the remainder of 2023, and shareholders remain optimistic about continued earnings growth for the foreseeable future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WTW. More…
| Total Revenues | Net Income | Net Margin |
| 9.08k | 1.07k | 12.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WTW. More…
| Operations | Investing | Financing |
| 984 | -1.23k | -868 |
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 |
| 28.77k | 18.9k | 92.08 |
Key Ratios Snapshot
Some of the financial key ratios for WTW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.7% | 0.6% | 16.7% |
| FCF Margin | ROE | ROA |
| 8.3% | 9.5% | 3.3% |
Analysis – WTW Intrinsic Value Calculation
GoodWhale has completed an analysis of WILLIS TOWERS WATSON’s financials, and calculated the fair value of WILLIS TOWERS WATSON’s share to be around $242.7 using our proprietary Valuation Line. Upon further analysis, we have found that WILLIS TOWERS WATSON’s stock is currently being traded at $212.2, a fair price that is undervalued by 12.6%. This presents an opportunity for investors to potentially make a profit by purchasing WILLIS TOWERS WATSON stock at a discounted rate. More…
Peers
Willis Towers Watson PLC is a leading global professional services firm that helps organizations manage risk and improve performance. The company has over 40,000 employees in more than 120 countries. Willis Towers Watson PLC is publicly traded on the New York Stock Exchange (NYSE: WLTW).
The company’s competitors include Argentum 47 Inc, Just Group PLC, and Marsh & McLennan Companies Inc. These companies are also leaders in the global professional services industry.
– Argentum 47 Inc ($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
On June 30, 2023, Willis Towers Watson reported its second quarter earnings results for the 2023 fiscal year. Total revenue increased 6.3% year-over-year to USD 2159.0 million, however net income dropped 13.8% to USD 94.0 million. This resulted in the stock price of Willis Towers Watson declining on the same day.
For investors, this could be a sign of caution as the company’s overall profitability is lower year-over-year. Nevertheless, the overall revenue growth is still healthy and could indicate potential future growth potential if the company can improve its profitability going forward.
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