AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - NYSE:AON - IE00BLP1HW54 - Common Stock
340 USD
-1.7 (-0.5%)
340 USD
0 (0%)
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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's Return On Assets of 5.26% is amongst the best of the industry. AON outperforms 86.99% of its industry peers.
AON has a better Return On Equity (34.24%) than 98.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.79%, AON belongs to the top of the industry, outperforming 97.95% 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 4.53%.
The last Return On Invested Capital (13.79%) 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 | 13.79% |
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
The Profit Margin of AON (15.96%) is better than 83.56% of its industry peers.
AON's Profit Margin has improved in the last couple of years.
The Operating Margin of AON (26.61%) is better than 91.78% of its industry peers.
AON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 47.22%, AON belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| 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
AON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AON has more shares outstanding than it did 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 1.62. This is a bad value and indicates that AON is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.62, AON belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
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.
AON has a Debt to FCF ratio of 5.52. This is in the lower half of the industry: AON underperforms 61.64% of its industry peers.
AON has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.90, AON is not doing good in the industry: 92.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.98
WACC6.97%
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.
Looking at the Current ratio, with a value of 1.06, AON is in the better half of the industry, outperforming 79.45% 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 a decent Quick ratio value of 1.06, AON is doing good in the industry, outperforming 79.45% 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.
Based on estimates for the next years, AON will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y8.66%
EPS Next 2Y10.66%
EPS Next 3Y11.19%
EPS Next 5Y10.38%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y7.1%
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
Based on the Price/Earnings ratio of 20.44, the valuation of AON can be described as rather expensive.
AON's Price/Earnings ratio is a bit more expensive when compared to the industry. AON is more expensive than 71.23% of the companies in the same industry.
AON is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.65, 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 67.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AON to the average of the S&P500 Index (31.86), we can say AON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
62.33% 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 63.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.12 | ||
| EV/EBITDA | 16.18 |
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)2.36
PEG (5Y)1.79
EPS Next 2Y10.66%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, AON is not a good candidate for dividend investing.
AON's Dividend Yield is slightly below the industry average, which is at 3.25.
Compared to an average S&P500 Dividend Yield of 2.40, AON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 3Y11.19%
340
-1.7 (-0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.51%
Inst Owner Change0%
Ins Owners1.09%
Ins Owner Change0.24%
Market Cap73.31B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts73.33
Price Target422.23 (24.19%)
Short Float %0.97%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)0.42%
PT rev (3m)3.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.65 | ||
| P/S | 4.31 | ||
| P/FCF | 24.12 | ||
| P/OCF | 22.32 | ||
| P/B | 9.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.18 |
EPS(TTM)16.63
EY4.89%
EPS(NY)19.26
Fwd EY5.67%
FCF(TTM)14.1
FCFY4.15%
OCF(TTM)15.23
OCFY4.48%
SpS78.97
BVpS36.82
TBVpS-63.03
PEG (NY)2.36
PEG (5Y)1.79
Graham Number117.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROCE | 17.08% | ||
| ROIC | 13.79% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 98.88% | ||
| OM | 26.61% | ||
| 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 | 1.9 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 25.29% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.74% | ||
| Profit Quality | 111.85% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.62 |
F-Score7
WACC6.97%
ROIC/WACC1.98
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 Y8.66%
EPS Next 2Y10.66%
EPS Next 3Y11.19%
EPS Next 5Y10.38%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y7.1%
Revenue Next 5Y5.74%
EBIT growth 1Y8.71%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year18.41%
EBIT Next 3Y11.77%
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%.