Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Willis Towers Watson had a gross margin of 40.55% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Willis Towers Watson Gross Margin % Related Terms
Willis Towers Watson Gross Margin % Historical Data
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The historical data trend for Willis Towers Watson's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:WTW N vs BRO, ERIE, NP: Gross Margin % Comparison
For the Insurance Brokers subindustry, Willis Towers Watson's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Willis Towers Watson Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Willis Towers Watson's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Willis Towers Watson's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Willis Towers Watson (MEX:WTW N) has a Gross Margin % of 40.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Willis Towers Watson and its competitors. This is near median its historical median of 41.37. Over the past decade, Willis Towers Watson's Gross Margin % has ranged from 38.52 to 44.59. According to the industry distribution chart, Willis Towers Watson ranks #33 out of 59 companies in the Insurance industry, placing it in the top 55.9%.
Is Willis Towers Watson's Gross Margin % too high?
Willis Towers Watson's current Gross Margin % of 40.55% is near median its 10-year median of 41.37. Over the past 10 years, this metric has ranged from a low of 38.52 to a high of 44.59. The Insurance industry median Gross Margin % is 42.38. Willis Towers Watson's value of 40.55% is 4.3% below this industry median. Based on the distribution chart, Willis Towers Watson ranks #33 out of 59 companies in the Insurance industry, which is below the industry midpoint. Overall, Willis Towers Watson has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Willis Towers Watson's Gross Margin % compare to BRO and ERIE?
According to the Insurance industry distribution chart, Willis Towers Watson ranks #33 out of 59 companies for Gross Margin %. This places Willis Towers Watson in the lower half of its industry. The industry median Gross Margin % is 42.38. Willis Towers Watson's value of 40.55% is 4.3% below this benchmark. Historically, Willis Towers Watson's own Gross Margin % has ranged from 38.52 to 44.59 over the past decade. While the company's 10-year median is 41.37 vs. the industry median of 42.38, Willis Towers Watson has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 59 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Willis Towers Watson's current Gross Margin % of 40.55% is 4.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Willis Towers Watson and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Willis Towers Watson's current Gross Margin % is 40.55%, which is near median its own 10-year median of 41.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Willis Towers Watson stock overvalued right now?
Willis Towers Watson (MEX:WTW N) has a current Gross Margin % of 40.55%. The stock's GF Value™ is MXN5,012.32, compared to a current price of MXN4,025.04 — trading 19.7% below its estimated fair value. The current Gross Margin % is 40.55%, which is near median its 10-year median of 41.37 and 4.3% below the Insurance industry median of 42.38. Willis Towers Watson's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Willis Towers Watson (MEX:WTW N), the current Gross Margin % is 40.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Willis Towers Watson (MEX:WTW N) Overvalued in 2026?
Based on GuruFocus' analysis, Willis Towers Watson stock appears to be undervalued.
The current stock price of MXN4,025.04 is trading 19.7% below its estimated GF Value™ of MXN5,012.32.
Key valuation signals for MEX:WTW N:
Gross Margin %: 40.55% (near median its 10-year median of 41.37)
GF Value™: MXN5,012.32 vs. price of MXN4,025.04 (19.7% below fair value)
Industry Position: 4.3% below the Insurance median (#33 of 59)
No single metric tells the full story. See the MEX:WTW N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Willis Towers Watson PLC is an advisory, broking, and solutions company that provides data-driven, insight-led solutions in the areas of people, risk, and capital. The company's segments include Health, Wealth & Career (HWC) and Risk & Broking (R&B). The HWC segment provides an array of advice, broking, solutions and technology for employee benefit plans, institutional investors, compensation and career programs, and employee experience overall. It focuses on four key areas: Health, Wealth, Career and Benefits Delivery & Outsourcing. The R&B segment provides risk advice, insurance brokerage and consulting services to clients ranging from small businesses to multinational corporations. Its R&B segment includes two businesses: Corporate Risk & Broking and Insurance Consulting and Technology.
71GF Score
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