AON PLC-CLASS A (AON)
IE00BLP1HW54 - Common Stock
Taking everything into account, AON scores 5 out of 10 in our fundamental rating. AON was compared to 140 industry peers in the Insurance industry. AON scores excellent on profitability, 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
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.
AON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.34%, AON belongs to the best of the industry, outperforming 91.37% of the companies in the same industry.
AON has a better Return On Invested Capital (17.76%) than 99.28% of its industry peers.
AON had an Average Return On Invested Capital over the past 3 years of 20.59%. This is significantly above the industry average of 4.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | N/A | ||
| ROIC | 17.76% |
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
The Profit Margin of AON (19.04%) is better than 83.45% 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 29.69%, AON belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
AON's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.69% | ||
| PM (TTM) | 19.04% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AON is creating value.
The number of shares outstanding for AON has been reduced compared to 1 year ago.
Compared to 5 years ago, AON has less shares outstanding
The debt/assets ratio for AON has remained at the same level compared to a year ago.
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's Altman-Z score of 1.70 is amongst the best of the industry. AON outperforms 89.21% of its industry peers.
The Debt to FCF ratio of AON is 5.37, which is a neutral value as it means it would take AON, 5.37 years of fcf income to pay off all of its debts.
AON has a Debt to FCF ratio of 5.37. This is in the lower half of the industry: AON underperforms 66.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.7 |
ROIC/WACC2.6
WACC6.82%
2.3 Liquidity
AON has a Current Ratio of 1.31. 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 1.31. This is amongst the best in the industry. AON outperforms 85.61% of its industry peers.
AON has a Quick Ratio of 1.31. 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 Quick ratio, with a value of 1.31, AON belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.71% over the past year.
AON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.68% yearly.
Looking at the last year, AON shows a small growth in Revenue. The Revenue has grown by 7.06% in the last year.
The Revenue has been growing slightly by 4.43% on average over the past years.
EPS 1Y (TTM)6.71%
EPS 3Y13.04%
EPS 5Y11.68%
EPS growth Q2Q9.48%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y6.52%
Revenue growth 5Y4.43%
Revenue growth Q2Q5.14%
3.2 Future
The Earnings Per Share is expected to grow by 11.32% 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 4.52% yearly.
EPS Next Y15.75%
EPS Next 2Y12.65%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue Next Year6.72%
Revenue Next 2Y7.34%
Revenue Next 3Y6.73%
Revenue Next 5Y4.52%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.99 indicates a rather expensive valuation of AON.
62.59% of the companies in the same industry are cheaper than AON, based on the Price/Earnings ratio.
AON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of AON can be described as correct.
64.03% of the companies in the same industry are cheaper than AON, based on the Price/Forward Earnings ratio.
AON is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 16.3 |
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 64.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.67 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AON may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)1.71
EPS Next 2Y12.65%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, AON is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.26, AON is paying slightly less dividend.
With a Dividend Yield of 0.92, AON pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
19.23% 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.
DP19.23%
EPS Next 2Y12.65%
EPS Next 3Y11.58%
AON PLC-CLASS A
NYSE:AON (5/17/2024, 7:04:00 PM)
After market: 292.45 0 (0%)292.45
+0.43 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 19.99 | ||
| Fwd PE | 16.3 | ||
| 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)1.27
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.69% | ||
| PM (TTM) | 19.04% | ||
| 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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| 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)
Growth
EPS 1Y (TTM)6.71%
EPS 3Y13.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.06%
Revenue growth 3Y6.52%
Revenue growth 5Y
Revenue growth 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