Willis Towers Watson (FRA:WTY) Financial Strength: 5 (As of Jun. 2026) — Near Median

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FRA:WTY Willis Towers Watson PLC FRA:WTY
77 GF Score
Price €284.40
GF Value €289.40
Valuation Fairly Valued
! 5 Warning Signs
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What is Willis Towers Watson Financial Strength?

Willis Towers Watson FRA:WTY -1.22% 77 Financial Strength is 5 as of Jun. 2026, which is at its 10-year median of 5.00. GuruFocus rates FRA:WTY with a GF Score™ of 77/100 and a GF Value™ of €289.40 (Fairly Valued). The stock has 5 warning signs investors should review.

Willis Towers Watson has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Willis Towers Watson's Interest Coverage for the quarter that ended in Jun. 2026 was 5.45. Willis Towers Watson's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.72. As of today, Willis Towers Watson's Altman Z-Score is 1.40.


Willis Towers Watson  (FRA:WTY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Willis Towers Watson has the Financial Strength Rank of 5.


Willis Towers Watson Financial Strength Related Terms


FRA:WTY vs BRO, ERIE, NP: Financial Strength Comparison

For the Insurance Brokers subindustry, Willis Towers Watson's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Insurance Industry

For the Insurance industry and Financial Services sector, Willis Towers Watson's Financial Strength distribution charts can be found below:

* The bar in red indicates where Willis Towers Watson's Financial Strength falls into.


FRA:WTY
77GF Score
Willis Towers Watson PLC FRA:WTY
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Willis Towers Watson Financial Strength Calculation

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

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

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Willis Towers Watson's Interest Expense for the months ended in Jun. 2026 was €-68 Mil. Its Operating Income for the months ended in Jun. 2026 was €369 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €5,412 Mil.

Willis Towers Watson's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*368.9/-67.704
=5.45

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Willis Towers Watson's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(751.688 + 5411.98) / 8561.952
=0.72

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Willis Towers Watson has a Z-score of 1.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.4 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Willis Towers Watson (FRA:WTY) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Willis Towers Watson and its competitors. This is near median its historical median of 5.00. Over the past decade, Willis Towers Watson's Financial Strength has ranged from 4.00 to 6.00.
Is Willis Towers Watson's Financial Strength too high?
Willis Towers Watson's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 6.00. Overall, Willis Towers Watson has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Willis Towers Watson's Financial Strength compare to BRO and ERIE?
Willis Towers Watson's Financial Strength of 5 can be compared against companies in the Insurance industry. Historically, Willis Towers Watson's own Financial Strength has ranged from 4.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Insurance company?
A good Financial Strength depends on the Insurance industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Willis Towers Watson and its competitors. Willis Towers Watson's current Financial Strength is 5, which is near median its own 10-year median of 5.00. 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?
Based on GuruFocus' analysis, Willis Towers Watson (FRA:WTY) is currently considered Fairly Valued. The stock's GF Value™ is €289.40, compared to a current price of €284.40 — trading 1.7% below its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. Willis Towers Watson's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Willis Towers Watson (FRA:WTY), the current Financial Strength is 5 as of Jun. 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 (FRA:WTY) Overvalued in 2026?

Based on GuruFocus' analysis, Willis Towers Watson stock appears to be undervalued. The current stock price of €284.40 is trading 1.7% below its estimated GF Value™ of €289.40. GuruFocus considers Willis Towers Watson to be Fairly Valued.

Key valuation signals for FRA:WTY:

  • Financial Strength: 5 (near median its 10-year median of 5.00)
  • GF Value™: €289.40 vs. price of €284.40 (1.7% below fair value)
  • GF Score™: 77/100 with 5 warning signs

No single metric tells the full story. See the FRA:WTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Willis Towers Watson Business Description

Address c/o Willis Group Limited, 51 Lime Street, London, GBR, EC3M 7DQ
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.
77GF Score

Get the complete analysis for FRA:WTY

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€284.40
Price
€289.40
GF Value