AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
355.77 USD
+0.31 (+0.09%)
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. While AON has a great profitability rating, 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.
In the past year AON had a positive cash flow from operations.
Each year in the past 5 years AON has been profitable.
In the past 5 years AON always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.26%, AON belongs to the best of the industry, outperforming 85.14% of the companies in the same industry.
The Return On Equity of AON (34.24%) is better than 98.65% of its industry peers.
AON has a better Return On Invested Capital (13.63%) than 97.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AON is significantly above the industry average of 14.88%.
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
With an excellent Profit Margin value of 15.96%, AON belongs to the best of the industry, outperforming 81.76% of the companies in the same industry.
In the last couple of years the Profit Margin of AON has grown nicely.
AON's Operating Margin of 26.70% is amongst the best of the industry. AON outperforms 88.51% of its industry peers.
AON's Operating Margin has improved in the last couple of years.
AON has a better Gross Margin (47.22%) than 93.24% 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.
AON has less shares outstanding than it did 5 years ago.
AON has a worse debt/assets ratio than last year.
2.2 Solvency
AON has an Altman-Z score of 1.66. This is a bad value and indicates that AON is not financially healthy and even has some risk of bankruptcy.
AON's Altman-Z score of 1.66 is amongst the best of the industry. AON outperforms 86.49% of its industry peers.
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.
With a Debt to FCF ratio value of 5.52, AON is not doing good in the industry: 64.19% of the companies in the same industry are doing better.
AON has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
AON has a Debt to Equity ratio of 1.95. This is amonst the worse of the industry: AON underperforms 93.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.96
WACC6.95%
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 in the better half of the industry: AON outperforms 79.73% of its industry peers.
A Quick Ratio of 1.06 indicates that AON should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.06, AON is doing good in the industry, outperforming 79.73% 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.
AON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.42% yearly.
The Revenue has grown by 14.08% in the past year. This is quite good.
The Revenue has been growing slightly by 7.35% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.38% on average over the next years. This is quite good.
AON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y8.98%
EPS Next 2Y10.66%
EPS Next 3Y11.33%
EPS Next 5Y10.38%
Revenue Next Year9.68%
Revenue Next 2Y5.32%
Revenue Next 3Y6.87%
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.
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
With a Price/Earnings ratio of 21.39, AON is valued on the expensive side.
Based on the Price/Earnings ratio, AON is valued a bit more expensive than the industry average as 67.57% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.61, AON is valued at the same level.
The Price/Forward Earnings ratio is 18.47, which indicates a rather expensive current valuation of AON.
AON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AON is more expensive than 68.24% of the companies in the same industry.
AON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
60.14% of the companies in the same industry are cheaper than AON, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 13.52 |
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.
AON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)1.87
EPS Next 2Y10.66%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, AON is not a good candidate for dividend investing.
AON's Dividend Yield is slightly below the industry average, which is at 2.30.
Compared to an average S&P500 Dividend Yield of 1.87, AON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 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 2Y10.66%
EPS Next 3Y11.33%
NYSE:AON (12/23/2025, 9:45:15 AM)
355.77
+0.31 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change-0.88%
Ins Owners1.06%
Ins Owner Change-0.86%
Market Cap76.47B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts75.56
Price Target410.28 (15.32%)
Short Float %0.98%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend2.71
Dividend Growth(5Y)9.31%
DP22.59%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)-2.83%
PT rev (3m)-2.42%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 18.47 | ||
| P/S | 4.49 | ||
| P/FCF | 25.15 | ||
| P/OCF | 23.29 | ||
| P/B | 9.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.52 |
EPS(TTM)16.63
EY4.67%
EPS(NY)19.26
Fwd EY5.41%
FCF(TTM)14.14
FCFY3.98%
OCF(TTM)15.28
OCFY4.29%
SpS79.22
BVpS36.94
TBVpS-63.24
PEG (NY)2.38
PEG (5Y)1.87
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 | 1.66 |
F-Score7
WACC6.95%
ROIC/WACC1.96
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 Y8.98%
EPS Next 2Y10.66%
EPS Next 3Y11.33%
EPS Next 5Y10.38%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
Revenue Next Year9.68%
Revenue Next 2Y5.32%
Revenue Next 3Y6.87%
Revenue Next 5Y5.74%
EBIT growth 1Y9.04%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year19.06%
EBIT Next 3Y11.82%
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.
Can you provide the valuation status for AON PLC-CLASS A?
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 financial health for AON stock?
The financial health rating of AON PLC-CLASS A (AON) is 4 / 10.
How sustainable is the dividend of AON PLC-CLASS A (AON) stock?
The dividend rating of AON PLC-CLASS A (AON) is 5 / 10 and the dividend payout ratio is 22.59%.