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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.94
TW's Cash to Debt is ranked higher than
64% of the 962 Companies
in the Global Business Services industry.

( Industry Median: 1.72 vs. TW: 1.94 )
TW' s 10-Year Cash to Debt Range
Min: 0.53   Max: No Debt
Current: 1.94

Equity to Asset 0.54
TW's Equity to Asset is ranked higher than
67% of the 940 Companies
in the Global Business Services industry.

( Industry Median: 0.49 vs. TW: 0.54 )
TW' s 10-Year Equity to Asset Range
Min: 0.16   Max: 0.59
Current: 0.54

0.16
0.59
Interest Coverage 37.20
TW's Interest Coverage is ranked higher than
68% of the 677 Companies
in the Global Business Services industry.

( Industry Median: 21.89 vs. TW: 37.20 )
TW' s 10-Year Interest Coverage Range
Min: 21.9   Max: 9999.99
Current: 37.2

21.9
9999.99
F-Score: 8
Z-Score: 3.29
M-Score: -2.59
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 13.11
TW's Operating margin (%) is ranked higher than
82% of the 951 Companies
in the Global Business Services industry.

( Industry Median: 7.10 vs. TW: 13.11 )
TW' s 10-Year Operating margin (%) Range
Min: 4.13   Max: 13.11
Current: 13.11

4.13
13.11
Net-margin (%) 8.86
TW's Net-margin (%) is ranked higher than
79% of the 951 Companies
in the Global Business Services industry.

( Industry Median: 4.59 vs. TW: 8.86 )
TW' s 10-Year Net-margin (%) Range
Min: 2.97   Max: 8.86
Current: 8.86

2.97
8.86
ROE (%) 11.70
TW's ROE (%) is ranked higher than
73% of the 920 Companies
in the Global Business Services industry.

( Industry Median: 10.29 vs. TW: 11.70 )
TW' s 10-Year ROE (%) Range
Min: 6.17   Max: 44.97
Current: 11.7

6.17
44.97
ROA (%) 5.98
TW's ROA (%) is ranked higher than
74% of the 966 Companies
in the Global Business Services industry.

( Industry Median: 4.48 vs. TW: 5.98 )
TW' s 10-Year ROA (%) Range
Min: 2.64   Max: 11.34
Current: 5.98

2.64
11.34
ROC (Joel Greenblatt) (%) 123.52
TW's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 961 Companies
in the Global Business Services industry.

( Industry Median: 33.75 vs. TW: 123.52 )
TW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 38.98   Max: 124.1
Current: 123.52

38.98
124.1
Revenue Growth (%) 7.70
TW's Revenue Growth (%) is ranked higher than
75% of the 730 Companies
in the Global Business Services industry.

( Industry Median: 6.10 vs. TW: 7.70 )
TW' s 10-Year Revenue Growth (%) Range
Min: -0.8   Max: 20.9
Current: 7.7

-0.8
20.9
EBITDA Growth (%) 25.10
TW's EBITDA Growth (%) is ranked higher than
88% of the 604 Companies
in the Global Business Services industry.

( Industry Median: 8.20 vs. TW: 25.10 )
TW' s 10-Year EBITDA Growth (%) Range
Min: -3.8   Max: 53.7
Current: 25.1

-3.8
53.7
EPS Growth (%) 30.00
TW's EPS Growth (%) is ranked higher than
88% of the 576 Companies
in the Global Business Services industry.

( Industry Median: 7.80 vs. TW: 30.00 )
TW' s 10-Year EPS Growth (%) Range
Min: -9.2   Max: 34.5
Current: 30

-9.2
34.5
» TW's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

TW Guru Trades in Q1 2013

Robert Olstein 47,000 sh (New)
Joel Greenblatt 25,727 sh (New)
John Rogers 969,105 sh (+44.92%)
Paul Tudor Jones 6,600 sh (+17.86%)
Chuck Royce 2,227,711 sh (+5.85%)
Jeremy Grantham Sold Out
» More
Q2 2013

TW Guru Trades in Q2 2013

Robert Olstein 80,000 sh (+70.21%)
Joel Greenblatt 34,436 sh (+33.85%)
Chuck Royce 2,761,011 sh (+23.94%)
Paul Tudor Jones Sold Out
John Rogers 963,505 sh (-0.58%)
» More
Q3 2013

TW Guru Trades in Q3 2013

Jim Simons 136,100 sh (New)
Pioneer Investments 151,406 sh (New)
Chuck Royce 2,578,503 sh (-6.61%)
John Rogers 833,939 sh (-13.45%)
Robert Olstein 59,000 sh (-26.25%)
Joel Greenblatt 7,725 sh (-77.57%)
» More
Q4 2013

TW Guru Trades in Q4 2013

Steve Mandel 1,098,124 sh (New)
Caxton Associates 19,869 sh (New)
Jeremy Grantham 6,904 sh (New)
Stanley Druckenmiller 88,300 sh (New)
Jim Simons 458,100 sh (+236.59%)
Pioneer Investments 159,931 sh (+5.63%)
Joel Greenblatt 7,691 sh (-0.44%)
Robert Olstein 52,000 sh (-11.86%)
John Rogers 587,502 sh (-29.55%)
Chuck Royce 1,749,613 sh (-32.15%)
» More
» Details

Insider Trades

Latest Guru Trades with TW

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Steve Mandel 2013-12-31 New Buy0.6%$107.09 - $126.59 $ 110.04-5%1098124
Joel Greenblatt 2013-09-30 Reduce -77.57%0.09%$80.99 - $108.16 $ 110.0425%7725
Joel Greenblatt 2013-06-30 Add 33.85%0.03%$68.02 - $81.95 $ 110.0446%34436
Joel Greenblatt 2013-03-31 New Buy0.09%$56.21 - $69.32 $ 110.0473%25727
Joel Greenblatt 2012-06-30 Sold Out 0.02%$57.06 - $66.53 $ 110.0476%0
Joel Greenblatt 2012-03-31 New Buy0.02%$57.94 - $66.52 $ 110.0486%3473
Ron Baron 2011-09-30 Sold Out 0.2373%$52.26 - $66.38 $ 110.0484%0
Joel Greenblatt 2011-09-30 Sold Out 0.1677%$52.26 - $66.38 $ 110.0484%0
Steve Mandel 2011-06-30 Sold Out 0.89%$54.33 - $63.77 $ 110.0484%0
Joel Greenblatt 2011-06-30 Add 351.63%0.13%$54.33 - $63.77 $ 110.0484%18255
Steve Mandel 2011-03-31 Reduce -41.82%0.64%$52.06 - $58.8 $ 110.0497%2027651
Joel Greenblatt 2011-03-31 New Buy0.07%$52.06 - $58.8 $ 110.0497%4042
George Soros 2011-03-31 Sold Out $52.06 - $58.8 $ 110.0497%0
Tweedy Browne 2011-03-31 Sold Out $52.06 - $58.8 $ 110.0497%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Towers Watson & Co

John Rogers Comments on Towers Watson - Jul 25, 2013

Consultant Towers Watson (TW) surged +18.21% as investors became increasingly aware of the potential for gains driven by the Affordable Care Act's implementation. Specifically, Towers Watson is largely known as a defined benefit plan pension consultant; it also, however, consults on related issues and has a health care consultancy. Moreover, in 2012 it purchased Extend Health, which was at the time the largest private Medicare exchange in the US. As businesses deal with the uncertainties stemming from this significant change, they naturally are seeking expertise—and Towers Watson is a go-to specialist in the field. Although we certainly do believe there is value in this part of the company's business, we have recognized it for some time, while the market seems to be treating it as new information.

From John RogersAriel Appreciation Fund Second Quarter 2013 Commentary.


Check out John Rogers latest stock trades

Top Ranked Articles about Towers Watson & Co

John Rogers Comments on Towers Watson
Consultant Towers Watson (TW) surged +18.21% as investors became increasingly aware of the potential for gains driven by the Affordable Care Act's implementation. Specifically, Towers Watson is largely known as a defined benefit plan pension consultant; it also, however, consults on related issues and has a health care consultancy. Moreover, in 2012 it purchased Extend Health, which was at the time the largest private Medicare exchange in the US. As businesses deal with the uncertainties stemming from this significant change, they naturally are seeking expertise—and Towers Watson is a go-to specialist in the field. Although we certainly do believe there is value in this part of the company's business, we have recognized it for some time, while the market seems to be treating it as new information. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.00
TW's P/E(ttm) is ranked higher than
61% of the 770 Companies
in the Global Business Services industry.

( Industry Median: 20.70 vs. TW: 22.00 )
TW' s 10-Year P/E(ttm) Range
Min: 10.14   Max: 29.43
Current: 22

10.14
29.43
P/B 2.60
TW's P/B is ranked higher than
59% of the 902 Companies
in the Global Business Services industry.

( Industry Median: 2.50 vs. TW: 2.60 )
TW' s 10-Year P/B Range
Min: 1.45   Max: 5.1
Current: 2.6

1.45
5.1
P/S 2.18
TW's P/S is ranked lower than
61% of the 948 Companies
in the Global Business Services industry.

( Industry Median: 1.33 vs. TW: 2.18 )
TW' s 10-Year P/S Range
Min: 0.91   Max: 2.61
Current: 2.18

0.91
2.61
PFCF 20.30
TW's PFCF is ranked higher than
52% of the 612 Companies
in the Global Business Services industry.

( Industry Median: 17.80 vs. TW: 20.30 )
TW' s 10-Year PFCF Range
Min: 8.4   Max: 278.62
Current: 20.3

8.4
278.62
EV-to-EBIT 15.20
TW's EV-to-EBIT is ranked higher than
59% of the 848 Companies
in the Global Business Services industry.

( Industry Median: 15.49 vs. TW: 15.20 )
TW' s 10-Year EV-to-EBIT Range
Min: 6.3   Max: 20.3
Current: 15.2

6.3
20.3
PEG 2.00
TW's PEG is ranked higher than
61% of the 458 Companies
in the Global Business Services industry.

( Industry Median: 2.17 vs. TW: 2.00 )
TW' s 10-Year PEG Range
Min: 0.43   Max: 47.16
Current: 2

0.43
47.16
Shiller P/E 30.40
TW's Shiller P/E is ranked higher than
53% of the 471 Companies
in the Global Business Services industry.

( Industry Median: 24.49 vs. TW: 30.40 )
TW' s 10-Year Shiller P/E Range
Min: 13.8   Max: 35.89
Current: 30.4

13.8
35.89

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.25
TW's Dividend Yield is ranked lower than
94% of the 640 Companies
in the Global Business Services industry.

( Industry Median: 2.20 vs. TW: 0.25 )
TW' s 10-Year Dividend Yield Range
Min: 0.11   Max: 1.2
Current: 0.25

0.11
1.2
Dividend Payout 0.03
TW's Dividend Payout is ranked higher than
99% of the 544 Companies
in the Global Business Services industry.

( Industry Median: 0.40 vs. TW: 0.03 )
TW' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.63
Current: 0.03

0.08
0.63
Dividend growth (3y) -8.50
TW's Dividend growth (3y) is ranked higher than
58% of the 346 Companies
in the Global Business Services industry.

( Industry Median: 8.70 vs. TW: -8.50 )
TW' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 58.7
Current: -8.5

0
58.7
Yield on cost (5-Year) 0.27
TW's Yield on cost (5-Year) is ranked lower than
95% of the 662 Companies
in the Global Business Services industry.

( Industry Median: 2.63 vs. TW: 0.27 )
TW' s 10-Year Yield on cost (5-Year) Range
Min: 0.1   Max: 1.06
Current: 0.27

0.1
1.06
Share Buyback Rate -6.40
TW's Share Buyback Rate is ranked higher than
56% of the 674 Companies
in the Global Business Services industry.

( Industry Median: -0.80 vs. TW: -6.40 )
TW' s 10-Year Share Buyback Rate Range
Min: 0.6   Max: -19.2
Current: -6.4

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.80
TW's Price/DCF (Projected) is ranked lower than
54% of the 509 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. TW: 1.80 )
TW' s 10-Year Price/DCF (Projected) Range
Min: 0.69   Max: 2.05
Current: 1.8

0.69
2.05
Price/Median PS Value 1.80
TW's Price/Median PS Value is ranked lower than
71% of the 891 Companies
in the Global Business Services industry.

( Industry Median: 1.10 vs. TW: 1.80 )
TW' s 10-Year Price/Median PS Value Range
Min: 0.6   Max: 2.07
Current: 1.8

0.6
2.07
Price/Peter Lynch Fair Value 2.10
TW's Price/Peter Lynch Fair Value is ranked lower than
53% of the 228 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. TW: 2.10 )
TW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.47   Max: 4.72
Current: 2.1

0.47
4.72
Earnings Yield (Greenblatt) 6.60
TW's Earnings Yield (Greenblatt) is ranked higher than
62% of the 851 Companies
in the Global Business Services industry.

( Industry Median: 6.60 vs. TW: 6.60 )
TW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.9   Max: 16
Current: 6.6

4.9
16
Forward Rate of Return (Yacktman) 13.03
TW's Forward Rate of Return (Yacktman) is ranked higher than
82% of the 664 Companies
in the Global Business Services industry.

( Industry Median: 6.75 vs. TW: 13.03 )
TW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.8   Max: 29.6
Current: 13.03

4.8
29.6

Business Description

Industry: Business Services » Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY » details
Traded in other countries:TW6.Germany
Towers Watson & Co. was formed on January 1, 2010, from the merger of Towers, Perrin, Forster & Crosby, Inc. ('Towers Perrin') and Watson Wyatt Worldwide, Inc. ('Watson Wyatt'). The Company is a professional services company that helps organizations improves performance through effective people, risk and financial management. It offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. It offers its client's comprehensive services across four business segments — Benefits, Risk and Financial Services, Talent and Rewards, and Exchange Solutions. The Company helps its clients enhance business performance in three main ways. First, it help employers improve their ability to attract retain and motivate qualified employees. The Company delivers consulting services and solutions that help organizations anticipate, identify and capitalize on emerging opportunities in benefit and human capital management. Second, The Company advises the insurance industry on a wide range of strategic and risk management issues, and it help its clients mitigate risk through insurance, reinsurance and capital market transactions. And The Company provides investment advice and solutions to help its clients develop and implement disciplined, efficient strategies to meet their investment goals. Lastly, it help employers realize cost savings related to their retiree health plans, while still providing retirees with improved choice and control over their health benefits. Its clients include many of the world's leading corporations, including approximately 81% of the Fortune Global 500 companies, 83% of the Fortune 1000, 88% of the FTSE 100 and 90% of the Dax 30. Its competitors in the global human resources consulting industry are Mercer HR Consulting and Aon Hewitt Consulting. The industry also includes other benefit and compensation firms and the human resource consulting divisions of diversified professional service firms, such as Deloitte, Accenture and PricewaterhouseCoopers. Its competitors in the insurance consulting and solutions industry include Milliman, Oliver Wyman and four accounting firms. In the reinsurance brokerage industry, its competitors are Aon Benfield, Guy Carpenter and Willis. The Company is subject to numerous U.S. and foreign jurisdiction laws and regulations.

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