AON PLC-CLASS A (AON)
IE00BLP1HW54 - Common Stock
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. AON has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, AON is valued expensive at the moment.
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.
AON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AON (4.88%) is better than 82.14% of its industry peers.
AON's Return On Equity of 39.01% is amongst the best of the industry. AON outperforms 99.29% of its industry peers.
With an excellent Return On Invested Capital value of 11.92%, AON belongs to the best of the industry, outperforming 96.43% 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 4.34%.
The last Return On Invested Capital (11.92%) for AON is well below the 3 year average (20.59%), which needs to be investigated, but indicates that AON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 39.01% | ||
| ROIC | 11.92% |
ROA(3y)6.47%
ROA(5y)6.15%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.59%
ROIC(5y)18.65%
1.3 Margins
AON has a better Profit Margin (16.32%) than 79.29% 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 26.61%, AON belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
AON's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| PM (TTM) | 16.32% | ||
| GM | N/A |
OM growth 3Y5.26%
OM growth 5Y7.44%
PM growth 3Y2.51%
PM growth 5Y12.73%
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.
The number of shares outstanding for AON has been reduced compared to 1 year ago.
AON has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AON has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that AON is in the distress zone and has some risk of bankruptcy.
AON has a better Altman-Z score (1.68) than 89.29% of its industry peers.
AON has a debt to FCF ratio of 5.93. This is a neutral value as AON would need 5.93 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.93, AON is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.74 is on the high side and indicates that AON has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.74, AON is doing worse than 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.76
WACC6.78%
2.3 Liquidity
AON has a Current Ratio of 1.07. 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 Current ratio of 1.07. This is in the better half of the industry: AON outperforms 80.00% of its industry peers.
A Quick Ratio of 1.07 indicates that AON should not have too much problems paying its short term obligations.
AON's Quick ratio of 1.07 is fine compared to the rest of the industry. AON outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.50% over the past year.
The Earnings Per Share has been growing by 11.68% on average over the past years. This is quite good.
AON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.67%.
AON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)7.5%
EPS 3Y13.04%
EPS 5Y11.68%
EPS Q2Q%17.24%
Revenue 1Y (TTM)13.67%
Revenue growth 3Y6.52%
Revenue growth 5Y4.43%
Sales Q2Q%26.01%
3.2 Future
The Earnings Per Share is expected to grow by 11.32% 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 4.52% on average per year.
EPS Next Y10.27%
EPS Next 2Y11.46%
EPS Next 3Y11.95%
EPS Next 5Y11.32%
Revenue Next Year17.97%
Revenue Next 2Y14.5%
Revenue Next 3Y11.66%
Revenue Next 5Y4.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AON is valuated quite expensively with a Price/Earnings ratio of 25.64.
Based on the Price/Earnings ratio, AON is valued a bit more expensive than the industry average as 68.57% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.56. AON is around the same levels.
A Price/Forward Earnings ratio of 22.18 indicates a rather expensive valuation of AON.
68.57% 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 24.20. AON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AON.
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 70.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.22 | ||
| EV/EBITDA | 18.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AON may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)2.2
EPS Next 2Y11.46%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
AON has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 4.06, AON is paying slightly less dividend.
With a Dividend Yield of 0.71, AON pays less dividend than the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
On average, the dividend of AON grows each year by 9.13%, which is quite nice.
AON has paid a dividend for at least 10 years, which is a reliable track record.
AON has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.13%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
22.13% of the earnings are spent on dividend by AON. This is a low number and sustainable payout ratio.
The dividend of AON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.13%
EPS Next 2Y11.46%
EPS Next 3Y11.95%
AON PLC-CLASS A
NYSE:AON (11/25/2024, 7:28:30 PM)
After market: 389.72 0 (0%)389.72
+3.51 (+0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap84.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.5
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 39.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.61% | ||
| PM (TTM) | 16.32% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.5%
EPS 3Y13.04%
EPS 5Y
EPS Q2Q%
EPS Next Y10.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.67%
Revenue growth 3Y6.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y