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41.68 (1y: +21%)
Market Cap 7.29 B P/E(ttm)
Enterprise Value 9.18 B P/B 4.26
WSH- NYSE (USA)
Willis Group Holdings PLC
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$41.68
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GuruFocus Financial Strength Rank measures how strong a companyÂ’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 : 5/10

vs
industry		 vs
history
Cash to Debt 0.21
WSH's Cash to Debt is ranked lower than
80% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2100.97 vs. WSH: 0.21 )
WSH' s 10-Year Cash to Debt Range
Min: 0.07   Max: 1.15
Current: 0.21
0.07
1.15
Equity to Asset -0.1
WSH's Equity to Asset is ranked lower than
91% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.24 vs. WSH: -0.1 )
WSH' s 10-Year Equity to Asset Range
Min: -0.13   Max: -0
Current: -0.1
-0.13
-0
F-Score: 3
Z-Score: 0.65
M-Score: -2.72
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyÂ’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 : 4/10

vs
industry		 vs
history
Operating margin (%) -6.00
WSH's Operating margin (%) is ranked lower than
55% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 16.70 vs. WSH: -6.00 )
WSH' s 10-Year Operating margin (%) Range
Min: -6   Max: 29.9
Current: -6
-6
29.9
Net-margin (%) -12.8
WSH's Net-margin (%) is ranked lower than
59% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.55 vs. WSH: -12.8 )
WSH' s 10-Year Net-margin (%) Range
Min: -12.8   Max: 19.9
Current: -12.8
-12.8
19.9
ROE (%) -26.3
WSH's ROE (%) is ranked higher than
53% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.60 vs. WSH: -26.3 )
WSH' s 10-Year ROE (%) Range
Min: -26.3   Max: 31.3
Current: -26.3
-26.3
31.3
ROA (%) -3
WSH's ROA (%) is ranked higher than
50% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.20 vs. WSH: -3 )
WSH' s 10-Year ROA (%) Range
Min: -3   Max: 3.8
Current: -3
-3
3.8
ROC (Joel Greenblatt) (%) -30.40
WSH's ROC (Joel Greenblatt) (%) is ranked higher than
62% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 63.60 vs. WSH: -30.40 )
WSH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.4   Max: 6660
Current: -30.4
-30.4
6660
Revenue Growth (%) 1
WSH's Revenue Growth (%) is ranked higher than
74% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. WSH: 1 )
WSH' s 10-Year Revenue Growth (%) Range
Min: 0.6   Max: 8.9
Current: 1
0.6
8.9
» WSH's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

WSH Guru Trades in Q2 2012

Richard Pzena 166,250 sh (New)
PRIMECAP Management 4,619,759 sh (New)
David Herro 2,761,109 sh (New)
Steven Cohen 1,896,220 sh (+3166.42%)
Jean-Marie Eveillard 4,384,383 sh (+0.77%)
NWQ Managers 342,854 sh (+0.13%)
Wallace Weitz 200,000 sh (unchged)
Columbia Wanger 909,000 sh (unchged)
Louis Moore Bacon Sold Out
Ruane Cunniff Sold Out
Meridian Funds Sold Out
Jim Simons Sold Out
Charles Brandes 272,047 sh (-0.02%)
Chuck Royce 91,800 sh (-1.4%)
Private Capital 680,054 sh (-1.65%)
James Barrow 3,682,323 sh (-2.76%)
Mason Hawkins 9,044,922 sh (-3.09%)
Westport Asset Management 1,457,820 sh (-5.39%)
RS Investment Management 1,738,213 sh (-22.81%)
» More
Q3 2012

WSH Guru Trades in Q3 2012

Pioneer Investments 847,480 sh (New)
Brian Rogers 2,852,728 sh (New)
Richard Pzena 1,521,800 sh (+815.37%)
David Herro 4,483,000 sh (+62.36%)
Chuck Royce 116,800 sh (+27.23%)
Jean-Marie Eveillard 4,515,383 sh (+2.99%)
James Barrow 3,711,613 sh (+0.8%)
Columbia Wanger 909,000 sh (unchged)
Steven Cohen Sold Out
PRIMECAP Management 4,605,765 sh (-0.3%)
Westport Asset Management 1,452,820 sh (-0.34%)
Charles Brandes 262,295 sh (-3.58%)
Private Capital 617,679 sh (-9.17%)
RS Investment Management 1,533,599 sh (-11.77%)
NWQ Managers 300,873 sh (-12.24%)
Mason Hawkins 5,521,200 sh (-38.96%)
Wallace Weitz 100,000 sh (-50%)
» More
Q4 2012

WSH Guru Trades in Q4 2012

Bill Gates 602,700 sh (New)
NWQ Managers 870,200 sh (+189.23%)
David Herro 7,213,000 sh (+60.9%)
Richard Pzena 2,186,400 sh (+43.67%)
Jean-Marie Eveillard 6,029,983 sh (+33.54%)
Brian Rogers 3,250,000 sh (+13.93%)
RS Investment Management 1,600,013 sh (+4.33%)
PRIMECAP Management 4,651,841 sh (+1%)
James Barrow 3,714,573 sh (+0.08%)
Chuck Royce 116,800 sh (unchged)
Westport Asset Management 1,452,820 sh (unchged)
Wallace Weitz 100,000 sh (unchged)
Columbia Wanger Sold Out
Mason Hawkins 5,462,500 sh (-1.06%)
Charles Brandes 257,777 sh (-1.72%)
Pioneer Investments 826,420 sh (-2.49%)
Private Capital 569,954 sh (-7.73%)
» More
Q1 2013

WSH Guru Trades in Q1 2013

Richard Pzena 4,364,266 sh (+99.61%)
NWQ Managers 928,377 sh (+6.69%)
Pioneer Investments 842,580 sh (+1.96%)
RS Investment Management 1,626,455 sh (+1.65%)
Jean-Marie Eveillard 6,098,283 sh (+1.13%)
Chuck Royce 116,800 sh (unchged)
Bill Gates 602,700 sh (unchged)
Wallace Weitz 100,000 sh (unchged)
Mason Hawkins Sold Out
Westport Asset Management 1,447,520 sh (-0.36%)
Private Capital 550,813 sh (-3.36%)
PRIMECAP Management 4,345,785 sh (-6.58%)
Brian Rogers 3,000,000 sh (-7.69%)
James Barrow 3,312,890 sh (-10.81%)
Charles Brandes 171,593 sh (-33.43%)
» More
» Details

Insider Trades

Latest Guru Trades with WSH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mason Hawkins 2013-03-31 Sold Out 0.8%$33.53 - $39.49 $ 41.6814%0
Richard Pzena 2013-03-31 Add 99.61%0.6%$33.53 - $39.49 $ 41.6814%4364266
Charles Brandes 2013-03-31 Reduce -33.43%0.03%$33.53 - $39.49 $ 41.6814%171593
Jean-Marie Eveillard 2012-12-31 Add 33.54%0.18%$33.22 - $37.32 $ 41.6820%6029983
Richard Pzena 2012-12-31 Add 43.67%0.18%$33.22 - $37.32 $ 41.6820%2186400
NWQ Managers 2012-12-31 Add 189.23%0.16%$33.22 - $37.32 $ 41.6820%870200
Bill Gates 2012-12-31 New Buy0.12%$33.22 - $37.32 $ 41.6820%602700
Mason Hawkins 2012-09-30 Reduce -38.96%0.55%$34.33 - $37.88 $ 41.6814%5521200
Brian Rogers 2012-09-30 New Buy0.46%$34.33 - $37.88 $ 41.6814%2852728
Richard Pzena 2012-09-30 Add 815.37%0.42%$34.33 - $37.88 $ 41.6814%1521800
Wallace Weitz 2012-09-30 Reduce -50%0.17%$34.33 - $37.88 $ 41.6814%100000
Meridian Funds 2012-06-30 Sold Out 1.7%$34.37 - $36.65 $ 41.6817%0
PRIMECAP Management 2012-06-30 New Buy0.28%$34.37 - $36.65 $ 41.6817%4619759
Ruane Cunniff 2012-06-30 Sold Out 0.17%$34.37 - $36.65 $ 41.6817%0
Richard Pzena 2012-06-30 New Buy0.07%$34.37 - $36.65 $ 41.6817%166250
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Willis Group Holdings PLC

RS Investments Comments on Willis Group Holdings - Jul 18, 2012

From RS Investments Value Fund's second-quarter commentary:

Willis Group Holdings (WSH) is the world's third largest insurance broker, in an industry where 78% of the market share is held by the top six players. The company operates as an intermediary in placing both insurance and reinsurance coverage. Approximately 70% of company revenues are generated through commissions and over 93% is recurring. Willis Group's is the world's largest reinsurance broker and more than half of its cash flows are generated outside the US. The company holds minority interests in Gras Savoye (31%), a French brokerage firm, and Al-Futtain (49%), a Dubai brokerage firm. CEO Joe Plumeri was the primary architect responsible for transforming the company after it was acquired by KKR Holdings in the late 1990s.

We believe that Willis Group is very well positioned to benefit from a sustained increase in property and casualty insurance pricing, which should reverse a multi-year downturn that has significantly reduced returns for underwriters. We believe that improved pricing is inevitable because: (1) the insurance industry is now cash flow negative on an underwriting basis, with paid losses now outpacing paid losses + changes to overall reserves; (2) Investment yields have declined dramatically due to low interest rates. New money yields now average 2.75%, compared to five years ago when they exceeded 5%. Given the industry's dependence on investment income and the underwriters' use of leverage, returns have declined materially; (3) The industry has been living off of reserve redundancies for the last several years, such that now reserves are developing adversely, which is putting additional pressure on balance sheets and capital positions; and (4) 2011 was the third worst catastrophe loss year on record, which led to over $100 billion in insured losses.

Willis Group produces consistent cash flow generation and, therefore, its stock price is less volatile during pricing downturns. The company enjoys long-term relationships with its clients, which range from small businesses to global Fortune 500 companies, and these revenue streams are very sticky (93+% persistency). Property and casualty insurance is a necessity for business customers and requires that they return to their broker at least once a year; and the broker collects the same commission regardless of whether it is for new business or renewal. Even during cyclical downturns, most brokers are able to increase the amount of insurance a business receives by changing terms and conditions so as to keep absolute pricing relatively flat. Despite the recent soft pricing environment and the global credit crisis, organic growth for the industry has remained positive for each of the past 12 years. For these reasons, we remain confident in our belief that our investment in Willis Group provides our investors with a compelling investment opportunity with ample downside protection.

Check out RS Investment Management latest stock trades

Top Ranked Articles about Willis Group Holdings PLC

RS Investments Comments on Willis Group Holdings
July 18, 2012
From RS Investments Value Fund's second-quarter commentary: Read more...

Ratios

vs
industry		 vs
history
P/B 4.26
WSH's P/B is ranked lower than
65% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.30 vs. WSH: 4.26 )
WSH' s 10-Year P/B Range
Min: 1.6   Max: 7.66
Current: 4.26
1.6
7.66
P/S 2.07
WSH's P/S is ranked higher than
57% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.10 vs. WSH: 2.07 )
WSH' s 10-Year P/S Range
Min: 1.01   Max: 3.49
Current: 2.07
1.01
3.49
PFCF 19.21
WSH's PFCF is ranked lower than
64% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 8.17 vs. WSH: 19.21 )
WSH' s 10-Year PFCF Range
Min: 11.77   Max: 288.63
Current: 19.21
11.77
288.63
EV-to-EBIT -38.42
WSH's EV-to-EBIT is ranked higher than
78% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 14.81 vs. WSH: -38.42 )
WSH' s 10-Year EV-to-EBIT Range
Min: 8.1   Max: 37
Current: -38.42
8.1
37
Shiller P/E 26.23
WSH's Shiller P/E is ranked higher than
85% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.40 vs. WSH: 26.23 )
WSH' s 10-Year Shiller P/E Range
Min: 7.34   Max: 26.21
Current: 26.23
7.34
26.21

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.62
WSH's Dividend Yield is ranked higher than
76% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.06 vs. WSH: 2.62 )
WSH' s 10-Year Dividend Yield Range
Min: 0.4   Max: 5.36
Current: 2.62
0.4
5.36
Dividend growth (3y) 0.9
WSH's Dividend growth (3y) is ranked lower than
76% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -5.90 vs. WSH: 0.9 )
WSH' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 13.1
Current: 0.9
0
13.1
Yield on cost (5-Year) 2.71
WSH's Yield on cost (5-Year) is ranked higher than
74% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.34 vs. WSH: 2.71 )
WSH' s 10-Year Yield on cost (5-Year) Range
Min: 0.42   Max: 5.58
Current: 2.71
0.42
5.58
Share Buyback Rate -0.6
WSH's Share Buyback Rate is ranked higher than
52% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -0.40 vs. WSH: -0.6 )
WSH' s 10-Year Share Buyback Rate Range
Min: 3.3   Max: -8.6
Current: -0.6

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 10.4
WSH's Price/Net Current Asset Value is ranked higher than
83% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.50 vs. WSH: 10.4 )
WSH' s 10-Year Price/Net Current Asset Value Range
Min: 0.5   Max: 11.2
Current: 10.4
0.5
11.2
Price/DCF (Projected) 1.9
WSH's Price/DCF (Projected) is ranked higher than
94% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.80 vs. WSH: 1.9 )
WSH' s 10-Year Price/DCF (Projected) Range
Min: 1.1   Max: 1.7
Current: 1.9
1.1
1.7
Price/Median PS Value 0.9
WSH's Price/Median PS Value is ranked higher than
65% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.00 vs. WSH: 0.9 )
WSH' s 10-Year Price/Median PS Value Range
Min: 0.6   Max: 1.3
Current: 0.9
0.6
1.3
Earnings Yield (Greenblatt) 7.70
WSH's Earnings Yield (Greenblatt) is ranked higher than
76% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.05 vs. WSH: 7.70 )
WSH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.7   Max: 12.3
Current: 7.7
2.7
12.3
Forward Rate of Return (Yacktman) 3.14
WSH's Forward Rate of Return (Yacktman) is ranked higher than
80% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 7.98 vs. WSH: 3.14 )
WSH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.7   Max: 24.4
Current: 3.14
4.7
24.4

Business Description

Willis Group Holdings PLC was incorporated in Bermuda on February 8, 2001. The Company provides a range of insurance brokerage, reinsurance and risk management consulting services to its worldwide clients. It has significant market positions in the United States, in the United Kingdom and, directly and through its associates, in many other countries. It provides both specialized risk management advisory and consulting services on a global basis to clients worldwide in specific industrial and commercial activities, and services to small, medium and major corporates through its retail operations. The Company organizes its business into three segments: North America and International, which together comprise its main retail operations, and Global. Its Global business provides specialist brokerage and consulting services to clients worldwide for the risks arising from specific industrial and commercial activities. In these operations, it has specialized experience handling diverse lines of coverage, including complex insurance programs, and acting as an intermediary between retail brokers and insurers. It provides consulting services on risk management with the objective of assisting clients to reduce the overall cost of risk. Its Global business serves clients in around 150 countries, mainly from offices in the United Kingdom, although it also serves clients from offices in the United States, Continental Europe and Asia. The Global business is divided into: Global Specialties; Willis Re; and Faber & Dumas. Global Specialties has strong global positions in Aerospace, Energy, Marine, Construction, Financial and Executive Risks and several niche businesses. The Company's North America and International retail operations provide services to small, medium and major corporate clients, accessing Global's specialist expertise when required. Its North America business provides risk management, insurance brokerage, related risk services, and employee benefits brokerage and consulting to an array of industry and client segments in the United States and Canada. With around 95 retail locations, organized into 8 regions including Canada, Willis North America locally delivers its global and national resources and specialist expertise through this retail distribution network. The Company's International unit consists of its retail operations in Eastern and Western Europe, the United Kingdom and Ireland, Asia/Pacific, Russia, the Middle East, South Africa and Latin America. The Company faces competition in all fields in which it operates based on global capability, product breadth, innovation, quality of service and price. It competes with Marsh & McLennan and Aon as well as with numerous regional and local firms. The Company's business activities are subject to legal requirements and governmental and quasi-governmental regulatory supervision in virtually all countries in which it operates.
Company Website
Industry: Insurance Brokers
Compare:BRO, AON, MMC, ERIE, NFP

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