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How Willis Towers Watson Public Limited Company (NASDAQ:WLTW) Could Add Value To Your Portfolio

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Willis Towers Watson Public Limited Company (NASDAQ:WLTW), it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Willis Towers Watson here.

Excellent balance sheet with solid track record

In the previous year, WLTW has ramped up its bottom line by 75%, with its latest earnings level surpassing its average level over the last five years. Not only did WLTW outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 4.0% earnings growth. This paints a buoyant picture for the company. WLTW is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that WLTW manages its cash and cost levels well, which is a key determinant of the company’s health. WLTW's has produced operating cash levels of 0.26x total debt over the past year, which implies that WLTW's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGS:WLTW Income Statement, July 24th 2019
NasdaqGS:WLTW Income Statement, July 24th 2019

Next Steps:

For Willis Towers Watson, there are three relevant factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for WLTW’s future growth? Take a look at our free research report of analyst consensus for WLTW’s outlook.

  2. Valuation: What is WLTW worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WLTW is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WLTW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.