AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
344.715 USD
-1.29 (-0.37%)
Overall AON gets a fundamental rating of 5 out of 10. We evaluated AON against 146 industry peers in the Insurance industry. AON has an excellent profitability rating, but there are some minor concerns on its financial health. AON is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AON was profitable.
- AON had a positive operating cash flow in the past year.
- In the past 5 years AON has always been profitable.
- In the past 5 years AON always reported a positive cash flow from operatings.
1.2 Ratios
- AON has a better Return On Assets (5.26%) than 85.62% of its industry peers.
- AON has a better Return On Equity (34.24%) than 98.63% of its industry peers.
- AON has a better Return On Invested Capital (13.63%) than 97.26% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AON is significantly above the industry average of 15.11%.
- The last Return On Invested Capital (13.63%) for AON is well below the 3 year average (20.44%), which needs to be investigated, but indicates that AON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROIC | 13.63% |
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
- AON's Profit Margin of 15.96% is amongst the best of the industry. AON outperforms 81.51% of its industry peers.
- In the last couple of years the Profit Margin of AON has grown nicely.
- With an excellent Operating Margin value of 26.70%, AON belongs to the best of the industry, outperforming 88.36% of the companies in the same industry.
- In the last couple of years the Operating Margin of AON has grown nicely.
- AON's Gross Margin of 47.22% is amongst the best of the industry. AON outperforms 95.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.7% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.22% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AON is creating value.
- The number of shares outstanding for AON has been increased compared to 1 year ago.
- 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 1.63, we must say that AON is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.63, AON belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
- AON has a debt to FCF ratio of 5.52. This is a neutral value as AON would need 5.52 years to pay back of all of its debts.
- The Debt to FCF ratio of AON (5.52) is worse than 65.07% of its industry peers.
- AON has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.95, AON is doing worse than 91.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.97
WACC6.93%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that AON should not have too much problems paying its short term obligations.
- AON has a Current ratio of 1.06. This is amongst the best in the industry. AON outperforms 80.14% of its industry peers.
- AON has a Quick Ratio of 1.06. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.06, AON belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- AON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, 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 14.08%.
- AON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)9.41%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%12.13%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
3.2 Future
- Based on estimates for the next years, AON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.38% on average per year.
- The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y9.01%
EPS Next 2Y10.65%
EPS Next 3Y11.34%
EPS Next 5Y10.38%
Revenue Next Year9.7%
Revenue Next 2Y5.68%
Revenue Next 3Y6.9%
Revenue Next 5Y5.74%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.73 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 67.81% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.33. AON is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.90, the valuation of AON can be described as rather expensive.
- 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 67.12% 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 (24.12), we can say AON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 60.96% of the companies listed in the same industry.
- AON's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AON is more expensive than 68.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AON does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of AON may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)1.81
EPS Next 2Y10.65%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
- AON has a yearly dividend return of 0.85%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.42, AON is paying slightly less dividend.
- With a Dividend Yield of 0.85, AON pays less dividend than the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
- On average, the dividend of AON grows each year by 9.31%, which is quite nice.
- AON has paid a dividend for at least 10 years, which is a reliable track record.
- As AON did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- AON pays out 22.59% of its income as dividend. This is a sustainable payout ratio.
- AON's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.59%
EPS Next 2Y10.65%
EPS Next 3Y11.34%
NYSE:AON (1/15/2026, 9:57:07 AM)
344.715
-1.29 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners87.86%
Inst Owner Change-0.08%
Ins Owners1.06%
Ins Owner Change-1.17%
Market Cap74.09B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts75.71
Price Target408.79 (18.59%)
Short Float %0.91%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend2.71
Dividend Growth(5Y)9.31%
DP22.59%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.68%
Min EPS beat(2)1.62%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)0.39%
Min EPS beat(4)-6.82%
Max EPS beat(4)3.73%
EPS beat(8)4
Avg EPS beat(8)-0.76%
EPS beat(12)6
Avg EPS beat(12)-0.37%
EPS beat(16)9
Avg EPS beat(16)0.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)2
Avg Revenue beat(16)-1.49%
PT rev (1m)-0.36%
PT rev (3m)-2.67%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.9 | ||
| P/S | 4.35 | ||
| P/FCF | 24.37 | ||
| P/OCF | 22.56 | ||
| P/B | 9.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)16.63
EY4.82%
EPS(NY)19.26
Fwd EY5.59%
FCF(TTM)14.14
FCFY4.1%
OCF(TTM)15.28
OCFY4.43%
SpS79.22
BVpS36.94
TBVpS-63.24
PEG (NY)2.3
PEG (5Y)1.81
Graham Number117.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROCE | 17.13% | ||
| ROIC | 13.63% | ||
| ROICexc | 21.29% | ||
| ROICexgc | N/A | ||
| OM | 26.7% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.22% | ||
| FCFM | 17.85% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 25.29% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 5.62 | ||
| Cash Conversion | 59.59% | ||
| Profit Quality | 111.85% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.63 |
F-Score7
WACC6.93%
ROIC/WACC1.97
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)9.41%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%12.13%
EPS Next Y9.01%
EPS Next 2Y10.65%
EPS Next 3Y11.34%
EPS Next 5Y10.38%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
Revenue Next Year9.7%
Revenue Next 2Y5.68%
Revenue Next 3Y6.9%
Revenue Next 5Y5.74%
EBIT growth 1Y9.04%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year19.04%
EBIT Next 3Y11.81%
EBIT Next 5Y7.11%
FCF growth 1Y3.3%
FCF growth 3Y11.27%
FCF growth 5Y11.84%
OCF growth 1Y2.11%
OCF growth 3Y11.63%
OCF growth 5Y10.59%
AON PLC-CLASS A / AON FAQ
Can you provide the ChartMill fundamental rating for AON PLC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to AON.
What is the valuation status of AON PLC-CLASS A (AON) stock?
ChartMill assigns a valuation rating of 2 / 10 to AON PLC-CLASS A (AON). This can be considered as Overvalued.
What is the profitability of AON stock?
AON PLC-CLASS A (AON) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for AON stock?
The Price/Earnings (PE) ratio for AON PLC-CLASS A (AON) is 20.73 and the Price/Book (PB) ratio is 9.33.
What is the financial health of AON PLC-CLASS A (AON) stock?
The financial health rating of AON PLC-CLASS A (AON) is 4 / 10.