AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - NYSE:AON - IE00BLP1HW54 - Common Stock
350.77 USD
-1.99 (-0.56%)
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. While AON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AON is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AON was profitable.
In the past year AON had a positive cash flow from operations.
AON had positive earnings in each of the past 5 years.
Each year in the past 5 years AON had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.82%, AON belongs to the top of the industry, outperforming 85.62% of the companies in the same industry.
With an excellent Return On Equity value of 33.19%, AON belongs to the best of the industry, outperforming 98.63% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.28%, AON belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AON is significantly above the industry average of 4.47%.
The 3 year average ROIC (20.44%) for AON is well above the current ROIC(12.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 33.19% | ||
| ROIC | 12.28% |
ROA(3y)6.96%
ROA(5y)6.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.44%
ROIC(5y)17.82%
1.3 Margins
Looking at the Profit Margin, with a value of 15.54%, AON belongs to the top of the industry, outperforming 83.56% of the companies in the same industry.
In the last couple of years the Profit Margin of AON has grown nicely.
With an excellent Operating Margin value of 26.12%, AON belongs to the best of the industry, outperforming 92.47% of the companies in the same industry.
AON's Operating Margin has improved in the last couple of years.
AON's Gross Margin of 47.00% is amongst the best of the industry. AON outperforms 94.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.12% | ||
| PM (TTM) | 15.54% | ||
| GM | 47% |
OM growth 3Y16.22%
OM growth 5Y2.49%
PM growth 3Y17.99%
PM growth 5Y3.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AON has more shares outstanding
The number of shares outstanding for AON has been reduced compared to 5 years ago.
The debt/assets ratio for AON is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that AON is in the distress zone and has some risk of bankruptcy.
AON has a better Altman-Z score (1.54) than 85.62% of its industry peers.
The Debt to FCF ratio of AON is 5.94, which is a neutral value as it means it would take AON, 5.94 years of fcf income to pay off all of its debts.
AON has a worse Debt to FCF ratio (5.94) than 62.33% of its industry peers.
AON has a Debt/Equity ratio of 2.20. This is a high value indicating a heavy dependency on external financing.
AON has a worse Debt to Equity ratio (2.20) than 93.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 1.54 |
ROIC/WACC1.78
WACC6.91%
2.3 Liquidity
AON has a Current Ratio of 1.03. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.03, AON is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
AON has a Quick Ratio of 1.03. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AON (1.03) is better than 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
AON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.14%, which is quite good.
Measured over the past years, AON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.42% on average per year.
AON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.32%.
AON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)10.14%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%19.11%
Revenue 1Y (TTM)18.32%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%10.51%
3.2 Future
AON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.38% yearly.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y8.23%
EPS Next 2Y11.07%
EPS Next 3Y11.13%
EPS Next 5Y10.38%
Revenue Next Year9.79%
Revenue Next 2Y8.2%
Revenue Next 3Y7.41%
Revenue Next 5Y5.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of AON.
Based on the Price/Earnings ratio, AON is valued a bit more expensive than the industry average as 71.92% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.41, AON is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of AON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 66.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AON to the average of the S&P500 Index (22.88), we can say AON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AON is on the same level as its industry peers.
AON's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AON is more expensive than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AON may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)1.88
EPS Next 2Y11.07%
EPS Next 3Y11.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, AON is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, AON is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, AON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of AON is nicely growing with an annual growth rate of 9.31%!
AON has been paying a dividend for at least 10 years, so it has a reliable track record.
AON has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
AON pays out 23.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of AON is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP23.09%
EPS Next 2Y11.07%
EPS Next 3Y11.13%
NYSE:AON (9/19/2025, 2:14:42 PM)
350.77
-1.99 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner Change-1.15%
Ins Owners1.09%
Ins Owner Change0.23%
Market Cap75.64B
Analysts71.54
Price Target420.47 (19.87%)
Short Float %0.88%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend2.71
Dividend Growth(5Y)9.31%
DP23.09%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.6%
Min EPS beat(2)-6.82%
Max EPS beat(2)1.62%
EPS beat(4)3
Avg EPS beat(4)1.64%
Min EPS beat(4)-6.82%
Max EPS beat(4)8.73%
EPS beat(8)4
Avg EPS beat(8)-0.75%
EPS beat(12)6
Avg EPS beat(12)-0.66%
EPS beat(16)9
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.71%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.15%
Revenue beat(12)1
Avg Revenue beat(12)-1.37%
Revenue beat(16)2
Avg Revenue beat(16)-1.31%
PT rev (1m)1.19%
PT rev (3m)3.37%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 18.07 | ||
| P/S | 4.52 | ||
| P/FCF | 25.97 | ||
| P/OCF | 24.02 | ||
| P/B | 9.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)16.3
EY4.65%
EPS(NY)19.41
Fwd EY5.53%
FCF(TTM)13.5
FCFY3.85%
OCF(TTM)14.6
OCFY4.16%
SpS77.69
BVpS36.37
TBVpS-69.16
PEG (NY)2.61
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 33.19% | ||
| ROCE | 16.25% | ||
| ROIC | 12.28% | ||
| ROICexc | 18.53% | ||
| ROICexgc | N/A | ||
| OM | 26.12% | ||
| PM (TTM) | 15.54% | ||
| GM | 47% | ||
| FCFM | 17.38% |
ROA(3y)6.96%
ROA(5y)6.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.44%
ROIC(5y)17.82%
ROICexc(3y)47.15%
ROICexc(5y)39.19%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.44%
ROCE(5y)22.9%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.92%
ROICexc growth 5Y-6.94%
OM growth 3Y16.22%
OM growth 5Y2.49%
PM growth 3Y17.99%
PM growth 5Y3.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | 5.94 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 25.05% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 59.17% | ||
| Profit Quality | 111.87% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.54 |
F-Score6
WACC6.91%
ROIC/WACC1.78
Cap/Depr(3y)68.15%
Cap/Depr(5y)56.12%
Cap/Sales(3y)1.61%
Cap/Sales(5y)1.45%
Profit Quality(3y)115.68%
Profit Quality(5y)128.84%
High Growth Momentum
Growth
EPS 1Y (TTM)10.14%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%19.11%
EPS Next Y8.23%
EPS Next 2Y11.07%
EPS Next 3Y11.13%
EPS Next 5Y10.38%
Revenue 1Y (TTM)18.32%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%10.51%
Revenue Next Year9.79%
Revenue Next 2Y8.2%
Revenue Next 3Y7.41%
Revenue Next 5Y5.74%
EBIT growth 1Y4.84%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year19.23%
EBIT Next 3Y12.05%
EBIT Next 5Y7.11%
FCF growth 1Y-1.15%
FCF growth 3Y11.27%
FCF growth 5Y11.84%
OCF growth 1Y-2.17%
OCF growth 3Y11.63%
OCF growth 5Y10.59%