AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
346.34 USD
-1.37 (-0.39%)
Overall AON gets a fundamental rating of 5 out of 10. We evaluated AON against 148 industry peers in the Insurance industry. While AON belongs to the best of the industry regarding profitability, 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
AON had positive earnings in the past year.
In the past year AON had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.26%, AON belongs to the top of the industry, outperforming 84.46% 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 97.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.63%, AON belongs to the top of the industry, outperforming 97.97% of the companies in the same industry.
AON had an Average Return On Invested Capital over the past 3 years of 20.44%. This is significantly above the industry average of 4.57%.
The 3 year average ROIC (20.44%) for AON is well above the current ROIC(13.63%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 15.96%, AON belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
In the last couple of years the Profit Margin of AON has grown nicely.
The Operating Margin of AON (26.70%) is better than 89.86% of its industry peers.
AON's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 47.22%, AON belongs to the best of the industry, outperforming 93.92% of the companies in the same industry.
| 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.
AON has more shares outstanding than it did 1 year ago.
AON has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AON has a worse debt to assets ratio.
2.2 Solvency
AON has an Altman-Z score of 1.64. 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 1.64 is amongst the best of the industry. AON outperforms 85.81% of its industry peers.
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.
With a Debt to FCF ratio value of 5.52, AON is not doing good in the industry: 64.19% 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.
With a Debt to Equity ratio value of 1.95, AON is not doing good in the industry: 92.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.97
WACC6.91%
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 79.73% 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.
The Quick ratio of AON (1.06) is better than 79.73% 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.
AON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.42% yearly.
Looking at the last year, AON shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
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.
AON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
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
The Price/Earnings ratio is 20.83, which indicates a rather expensive current valuation of AON.
Compared to the rest of the industry, the Price/Earnings ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 72.97% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, AON is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.98, which indicates a rather expensive current valuation of AON.
71.62% of the companies in the same industry are cheaper than AON, based on the Price/Forward Earnings ratio.
AON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AON is valued a bit more expensive than 60.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 13.22 |
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)2.4
PEG (5Y)1.82
EPS Next 2Y10.66%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, AON is not a good candidate for dividend investing.
AON's Dividend Yield is slightly below the industry average, which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.32, AON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of AON is nicely growing with an annual growth rate of 9.31%!
AON has paid a dividend for at least 10 years, which is a reliable track record.
AON has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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%
NYSE:AON (12/5/2025, 10:14:02 AM)
346.34
-1.37 (-0.39%)
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-0.86%
Market Cap74.44B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts73.33
Price Target409.62 (18.27%)
Short Float %0.93%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 | 20.83 | ||
| Fwd PE | 17.98 | ||
| P/S | 4.37 | ||
| P/FCF | 24.49 | ||
| P/OCF | 22.67 | ||
| P/B | 9.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.22 |
EPS(TTM)16.63
EY4.8%
EPS(NY)19.26
Fwd EY5.56%
FCF(TTM)14.14
FCFY4.08%
OCF(TTM)15.28
OCFY4.41%
SpS79.22
BVpS36.94
TBVpS-63.24
PEG (NY)2.4
PEG (5Y)1.82
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 | 1.64 |
F-Score7
WACC6.91%
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%.