AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
354.1 USD
+0.31 (+0.09%)
354.1 USD
0 (0%)
Taking everything into account, AON scores 5 out of 10 in our fundamental rating. AON was compared to 147 industry peers in the Insurance industry. AON has an excellent profitability rating, but 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
AON had positive earnings in the past year.
AON had a positive operating cash flow in the past year.
In the past 5 years AON has always been profitable.
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 5.26%, AON belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
AON has a Return On Equity of 34.24%. This is amongst the best in the industry. AON outperforms 98.64% of its industry peers.
With an excellent Return On Invested Capital value of 13.63%, AON belongs to the best of the industry, outperforming 97.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AON is significantly above the industry average of 14.89%.
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 has a better Profit Margin (15.96%) than 81.63% of its industry peers.
In the last couple of years the Profit Margin of AON has grown nicely.
The Operating Margin of AON (26.70%) is better than 88.44% of its industry peers.
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 93.20% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AON is creating value.
The number of shares outstanding for AON has been increased compared to 1 year ago.
Compared to 5 years ago, AON has less shares outstanding
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 87.07% of its industry peers.
The Debt to FCF ratio of AON is 5.52, which is a neutral value as it means it would take AON, 5.52 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.52, AON is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.95 is on the high side and indicates that AON has dependencies on debt financing.
AON has a worse Debt to Equity ratio (1.95) than 93.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.97
WACC6.92%
2.3 Liquidity
AON has a Current 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 Current ratio value of 1.06, AON belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that AON should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.06, AON belongs to the best of the industry, outperforming 80.27% 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
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 Y8.98%
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
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
With a Price/Earnings ratio of 21.29, AON is valued on the expensive side.
AON's Price/Earnings ratio is a bit more expensive when compared to the industry. AON is more expensive than 68.71% of the companies in the same industry.
AON is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.38, the valuation of AON can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AON is valued a bit more expensive than 68.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AON to the average of the S&P500 Index (23.78), we can say AON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
60.54% of the companies in the same industry are cheaper than AON, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 68.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 13.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)1.86
EPS Next 2Y10.66%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
AON has a yearly dividend return of 0.86%, which is pretty low.
AON's Dividend Yield is slightly below the industry average, which is at 2.64.
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 | 0.86% |
5.2 History
On average, the dividend of AON grows each year by 9.31%, which is quite nice.
AON has been paying a dividend for at least 10 years, so it has 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
22.59% of the earnings are spent on dividend by AON. This is a low number and 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.
DP22.59%
EPS Next 2Y10.66%
EPS Next 3Y11.33%
354.1
+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 Cap76.11B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts75.56
Price Target410.28 (15.87%)
Short Float %0.93%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.18%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 18.38 | ||
| P/S | 4.47 | ||
| P/FCF | 25.04 | ||
| P/OCF | 23.18 | ||
| P/B | 9.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.45 |
EPS(TTM)16.63
EY4.7%
EPS(NY)19.26
Fwd EY5.44%
FCF(TTM)14.14
FCFY3.99%
OCF(TTM)15.28
OCFY4.31%
SpS79.22
BVpS36.94
TBVpS-63.24
PEG (NY)2.37
PEG (5Y)1.86
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
WACC6.92%
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 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%.