AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
352.61 USD
+1.65 (+0.47%)
352.61 USD
0 (0%)
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. While AON has a great profitability rating, 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.
AON had positive earnings in each of the past 5 years.
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 85.03% 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 97.28% of its industry peers.
AON has a better Return On Invested Capital (13.63%) than 97.96% of its industry peers.
AON had an Average Return On Invested Capital over the past 3 years of 20.44%. This is significantly above the industry average of 4.52%.
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
The Profit Margin of AON (15.96%) is better than 80.27% of its industry peers.
AON's Profit Margin has improved in the last couple of years.
AON has a better Operating Margin (26.70%) than 89.80% of its industry peers.
AON's Operating Margin has improved in the last couple of years.
The Gross Margin of AON (47.22%) is better than 94.56% 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.
Compared to 1 year ago, AON has more shares outstanding
Compared to 5 years ago, AON has less shares outstanding
The debt/assets ratio for AON is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.66, AON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
The Debt to FCF ratio of AON (5.52) is worse than 64.63% of its industry peers.
AON has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.95, AON is not doing good in the industry: 92.52% of the companies in the same industry are doing better.
| 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 a decent Current ratio value of 1.06, AON is doing good in the industry, outperforming 79.59% of the companies in the same industry.
AON has a Quick 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.
AON's Quick ratio of 1.06 is fine compared to the rest of the industry. AON outperforms 79.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.41% over the past year.
The Earnings Per Share has been growing by 11.42% on average over the past years. This is quite good.
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
Based on estimates for the next years, AON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.38% on average per year.
The Revenue is expected to grow by 5.74% on average over the next years.
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.
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 21.20, AON is valued on the expensive side.
Based on the Price/Earnings ratio, AON is valued a bit more expensive than 72.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AON is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.31, 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 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, AON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AON.
Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.01 | ||
| EV/EBITDA | 13.45 |
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.
The excellent profitability rating of AON may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)1.86
EPS Next 2Y10.66%
EPS Next 3Y11.19%
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 3.46.
With a Dividend Yield of 0.86, AON pays less dividend than the S&P500 average, which is at 2.41.
| 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
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 3Y11.19%
352.61
+1.65 (+0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.51%
Inst Owner Change-0.9%
Ins Owners1.09%
Ins Owner Change-0.95%
Market Cap76.03B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts73.33
Price Target409.62 (16.17%)
Short Float %0.9%
Short Ratio1.51
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)-2.48%
PT rev (3m)-2.05%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 18.31 | ||
| P/S | 4.47 | ||
| P/FCF | 25.01 | ||
| P/OCF | 23.15 | ||
| P/B | 9.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.45 |
EPS(TTM)16.63
EY4.72%
EPS(NY)19.26
Fwd EY5.46%
FCF(TTM)14.1
FCFY4%
OCF(TTM)15.23
OCFY4.32%
SpS78.97
BVpS36.82
TBVpS-63.03
PEG (NY)2.45
PEG (5Y)1.86
Graham Number117.37
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 Y8.66%
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 1Y9.04%
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%.