AON PLC-CLASS A (AON) Fundamental Analysis & Valuation
NYSE:AON • IE00BLP1HW54
Current stock price
323.78 USD
+2.64 (+0.82%)
At close:
323.78 USD
0 (0%)
After Hours:
This AON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AON Profitability Analysis
1.1 Basic Checks
- AON had positive earnings in the past year.
- 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
- AON has a better Return On Assets (7.28%) than 87.76% of its industry peers.
- AON's Return On Equity of 39.51% is amongst the best of the industry. AON outperforms 98.64% of its industry peers.
- AON's Return On Invested Capital of 13.52% is amongst the best of the industry. AON outperforms 95.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AON is significantly above the industry average of 9.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 39.51% | ||
| ROIC | 13.52% |
ROA(3y)6.75%
ROA(5y)6.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.05%
ROIC(5y)17.11%
1.3 Margins
- The Profit Margin of AON (21.51%) is better than 86.39% of its industry peers.
- In the last couple of years the Profit Margin of AON has grown nicely.
- AON has a Operating Margin of 27.55%. This is amongst the best in the industry. AON outperforms 87.76% of its industry peers.
- In the last couple of years the Operating Margin of AON has grown nicely.
- AON has a better Gross Margin (47.70%) than 93.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.55% | ||
| PM (TTM) | 21.51% | ||
| GM | 47.7% |
OM growth 3Y-1.94%
OM growth 5Y1.98%
PM growth 3Y1.21%
PM growth 5Y3.86%
GM growth 3YN/A
GM growth 5YN/A
2. AON Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AON is creating value.
- AON has less shares outstanding than it did 1 year ago.
- AON has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AON has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.70, we must say that AON is in the distress zone and has some risk of bankruptcy.
- AON has a Altman-Z score of 1.70. This is amongst the best in the industry. AON outperforms 87.76% of its industry peers.
- The Debt to FCF ratio of AON is 4.74, which is a neutral value as it means it would take AON, 4.74 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.74, AON is doing worse than 65.31% of the companies in the same industry.
- AON has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.57, AON is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.94
WACC6.96%
2.3 Liquidity
- AON has a Current Ratio of 1.11. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of AON (1.11) is better than 81.63% of its industry peers.
- AON has a Quick Ratio of 1.11. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
- AON has a Quick ratio of 1.11. This is amongst the best in the industry. AON outperforms 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. AON Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 8.46% over the past year.
- The Earnings Per Share has been growing by 11.75% on average over the past years. This is quite good.
- The Revenue has grown by 9.45% in the past year. This is quite good.
- Measured over the past years, AON shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
EPS 1Y (TTM)8.46%
EPS 3Y8.46%
EPS 5Y11.75%
EPS Q2Q%9.73%
Revenue 1Y (TTM)9.45%
Revenue growth 3Y11.25%
Revenue growth 5Y9.2%
Sales Q2Q%3.69%
3.2 Future
- The Earnings Per Share is expected to grow by 10.64% 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 4.76% yearly.
EPS Next Y12.89%
EPS Next 2Y12.71%
EPS Next 3Y11.92%
EPS Next 5Y10.64%
Revenue Next Year4.21%
Revenue Next 2Y5.3%
Revenue Next 3Y5.32%
Revenue Next 5Y4.76%
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. AON Valuation Analysis
4.1 Price/Earnings Ratio
- AON is valuated rather expensively with a Price/Earnings ratio of 18.98.
- Compared to the rest of the industry, the Price/Earnings ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 76.87% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.35. AON is valued slightly cheaper when compared to this.
- AON is valuated correctly with a Price/Forward Earnings ratio of 16.81.
- 68.71% of the companies in the same industry are cheaper than AON, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.23. AON is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
- AON's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.56 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
- AON's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)1.62
EPS Next 2Y12.71%
EPS Next 3Y11.92%
5. AON Dividend Analysis
5.1 Amount
- AON has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- AON's Dividend Yield is slightly below the industry average, which is at 2.37.
- With a Dividend Yield of 1.02, AON pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
- The dividend of AON is nicely growing with an annual growth rate of 10.19%!
- 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)10.19%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 17.02% of the earnings are spent on dividend by AON. This is a low number and 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.
DP17.02%
EPS Next 2Y12.71%
EPS Next 3Y11.92%
AON Fundamentals: All Metrics, Ratios and Statistics
323.78
+2.64 (+0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-23 2026-04-23/bmo
Earnings (Next)07-23 2026-07-23/bmo
Inst Owners88.67%
Inst Owner Change-0.1%
Ins Owners1.09%
Ins Owner Change1.37%
Market Cap69.37B
Revenue(TTM)17.18B
Net Income(TTM)3.69B
Analysts74.29
Price Target400.73 (23.77%)
Short Float %1.19%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend2.92
Dividend Growth(5Y)10.19%
DP17.02%
Div Incr Years6
Div Non Decr Years6
Ex-Date05-01 2026-05-01 (0.82)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.58%
Min EPS beat(2)1.44%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)-0.01%
Min EPS beat(4)-6.82%
Max EPS beat(4)3.73%
EPS beat(8)5
Avg EPS beat(8)0.08%
EPS beat(12)6
Avg EPS beat(12)-0.7%
EPS beat(16)9
Avg EPS beat(16)-0.09%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.61%
Revenue beat(12)2
Avg Revenue beat(12)-1.09%
Revenue beat(16)2
Avg Revenue beat(16)-1.47%
PT rev (1m)-0.98%
PT rev (3m)-1.39%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.81 | ||
| P/S | 4.04 | ||
| P/FCF | 21.56 | ||
| P/OCF | 19.93 | ||
| P/B | 7.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.39 |
EPS(TTM)17.06
EY5.27%
EPS(NY)19.26
Fwd EY5.95%
FCF(TTM)15.02
FCFY4.64%
OCF(TTM)16.25
OCFY5.02%
SpS80.19
BVpS43.65
TBVpS-56.81
PEG (NY)1.47
PEG (5Y)1.62
Graham Number129.441 (-60.02%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 39.51% | ||
| ROCE | 17.18% | ||
| ROIC | 13.52% | ||
| ROICexc | 21.43% | ||
| ROICexgc | N/A | ||
| OM | 27.55% | ||
| PM (TTM) | 21.51% | ||
| GM | 47.7% | ||
| FCFM | 18.73% |
ROA(3y)6.75%
ROA(5y)6.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.05%
ROIC(5y)17.11%
ROICexc(3y)35.52%
ROICexc(5y)36.88%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.33%
ROCE(5y)22.57%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-25.84%
ROICexc growth 5Y-5.13%
OM growth 3Y-1.94%
OM growth 5Y1.98%
PM growth 3Y1.21%
PM growth 5Y3.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 27.23% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 5.95 | ||
| Cash Conversion | 61.07% | ||
| Profit Quality | 87.09% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.7 |
F-Score8
WACC6.96%
ROIC/WACC1.94
Cap/Depr(3y)52.48%
Cap/Depr(5y)54.74%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.5%
Profit Quality(3y)105.79%
Profit Quality(5y)119.42%
High Growth Momentum
Growth
EPS 1Y (TTM)8.46%
EPS 3Y8.46%
EPS 5Y11.75%
EPS Q2Q%9.73%
EPS Next Y12.89%
EPS Next 2Y12.71%
EPS Next 3Y11.92%
EPS Next 5Y10.64%
Revenue 1Y (TTM)9.45%
Revenue growth 3Y11.25%
Revenue growth 5Y9.2%
Sales Q2Q%3.69%
Revenue Next Year4.21%
Revenue Next 2Y5.3%
Revenue Next 3Y5.32%
Revenue Next 5Y4.76%
EBIT growth 1Y12.07%
EBIT growth 3Y9.09%
EBIT growth 5Y11.36%
EBIT Next Year14.63%
EBIT Next 3Y10.29%
EBIT Next 5Y6.08%
FCF growth 1Y14.24%
FCF growth 3Y2.11%
FCF growth 5Y4.02%
OCF growth 1Y14.7%
OCF growth 3Y2.64%
OCF growth 5Y4.58%
AON PLC-CLASS A / AON Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for AON PLC-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to AON.
What is the valuation status of AON PLC-CLASS A (AON) stock?
ChartMill assigns a valuation rating of 3 / 10 to AON PLC-CLASS A (AON). This can be considered as Overvalued.
How profitable is AON PLC-CLASS A (AON) stock?
AON PLC-CLASS A (AON) has a profitability rating of 9 / 10.
What is the earnings growth outlook for AON PLC-CLASS A?
The Earnings per Share (EPS) of AON PLC-CLASS A (AON) is expected to grow by 12.89% in the next year.
Is the dividend of AON PLC-CLASS A sustainable?
The dividend rating of AON PLC-CLASS A (AON) is 5 / 10 and the dividend payout ratio is 17.02%.