Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients worldwide.
Proven track record with reasonable growth potential and pays a dividend.
Share Price & News
How has Aon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 9H6's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 9H6 exceeded the German Insurance industry which returned -22.9% over the past year.
Return vs Market: 9H6 exceeded the German Market which returned -20.9% over the past year.
Price Volatility Vs. Market
How volatile is Aon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Aon undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 9H6 (€144) is trading below our estimate of fair value (€277.94)
Significantly Below Fair Value: 9H6 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 9H6 is poor value based on its PE Ratio (24x) compared to the Insurance industry average (9x).
PE vs Market: 9H6 is poor value based on its PE Ratio (24x) compared to the German market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: 9H6 is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: 9H6 is overvalued based on its PB Ratio (10.6x) compared to the DE Insurance industry average (0.8x).
How is Aon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 9H6's forecast earnings growth (19.2% per year) is above the savings rate (-0.4%).
Earnings vs Market: 9H6's earnings (19.2% per year) are forecast to grow faster than the German market (14.1% per year).
High Growth Earnings: 9H6's earnings are forecast to grow, but not significantly.
Revenue vs Market: 9H6's revenue (5.4% per year) is forecast to grow faster than the German market (3.9% per year).
High Growth Revenue: 9H6's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 9H6's Return on Equity is forecast to be very high in 3 years time (83.5%).
How has Aon performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 9H6 has high quality earnings.
Growing Profit Margin: 9H6's current net profit margins (13.9%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: 9H6's earnings have declined by -4% per year over the past 5 years.
Accelerating Growth: 9H6's earnings growth over the past year (44.6%) exceeds its 5-year average (-4% per year).
Earnings vs Industry: 9H6 earnings growth over the past year (44.6%) exceeded the Insurance industry 17.9%.
Return on Equity
High ROE: Whilst 9H6's Return on Equity (45.64%) is outstanding, this metric is skewed due to their high level of debt.
How is Aon's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: 9H6 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 9H6's debt is covered by short term assets (assets are 2.2x debt).
Financial Institutions Analysis
Asset Level: 9H6's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if 9H6 has a sufficient allowance for bad loans.
Low Risk Liabilities: 9H6 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 9H6 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 9H6 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 9H6 has an appropriate level of bad loans.
What is Aon's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 9H6's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.7%).
High Dividend: 9H6's dividend (1.14%) is low compared to the top 25% of dividend payers in the German market (4.86%).
Stability and Growth of Payments
Stable Dividend: 9H6's dividends per share have been stable in the past 10 years.
Growing Dividend: 9H6's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.8%), 9H6's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 9H6's dividends in 3 years are forecast to be well covered by earnings (16.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Greg Case (56yo)
Mr. Gregory C. Case, also known as Greg, has been the Chief Executive Officer and Executive Director of Aon plc and Aon Corporation at Aon Hewitt LLC since April 4, 2005. He serves as Chief Executive Offic ...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($USD16.16M) is above average for companies of similar size in the German market ($USD5.20M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
|CEO & Executive Director||15yrs||US$16.16m||0.52% $172.4m|
|Executive VP of Global Finance & CFO||12.08yrs||US$12.32m||0.094% $31.4m|
|Global COO and CEO of Data & Analytic Services||3yrs||no data||0.029% $9.8m|
|Chief Accounting Officer||no data||no data||0.0018% $602.0k|
|Chief Administrative Officer||no data||no data||no data|
|Senior VP & Head of Investor Relations||0.58yr||no data||no data|
|Executive VP||0.75yr||no data||0.0038% $1.3m|
|Senior Vice President of Corporate Development||11.92yrs||no data||no data|
|Global Chief Marketing Officer||no data||no data||0.0072% $2.4m|
Experienced Management: 9H6's management team is considered experienced (3 years average tenure).
|CEO & Executive Director||15yrs||US$16.16m||0.52% $172.4m|
|Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions||0.92yr||no data||no data|
|Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia||7.42yrs||no data||no data|
|Independent Non-Executive Director||22yrs||US$397.65k||0.020% $6.8m|
|Independent Non-Executive Chairman of the Board||11.67yrs||US$803.26k||0.093% $31.1m|
|Independent Non-Executive Director||17.25yrs||US$372.71k||0.015% $4.9m|
|Chairman of Aon Specialty and Director of Aon Benfield||11.33yrs||no data||no data|
|Independent Non-Executive Director||15.92yrs||US$387.45k||0.015% $5.1m|
|Global Chairman of Reinsurance Solutions||2.08yrs||no data||no data|
|Executive Chairman of Reinsurance Solutions Business||0.92yr||no data||no data|
Experienced Board: 9H6's board of directors are seasoned and experienced ( 11.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 9H6 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Aon plc's company bio, employee growth, exchange listings and data sources
- Name: Aon plc
- Ticker: 9H6
- Exchange: DB
- Founded: 1919
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$35.884b
- Listing Market Cap: US$33.261b
- Shares outstanding: 232.80m
- Website: https://www.aon.com
Number of Employees
- Aon plc
- The Leadenhall Building
- The Aon Centre
- Greater London
- EC3V 4AN
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AON||NYSE (New York Stock Exchange)||Yes||Class A Ordinary Shares||US||USD||Jun 1980|
|9H6||DB (Deutsche Boerse AG)||Yes||Class A Ordinary Shares||DE||EUR||Jun 1980|
|0XHL||LSE (London Stock Exchange)||Yes||Class A Ordinary Shares||GB||USD||Jun 1980|
|9H6||BRSE (Berne Stock Exchange)||Yes||Class A Ordinary Shares||CH||CHF||Jun 1980|
|A1ON34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance provider; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides reinsurance solutions, such as treaty and facultative reinsurance, as well as investment banking services, including mergers and acquisition, capital raising, strategic advisory, restructuring, and recapitalization services; insurance-linked securities; and corporate finance advisory services, capital markets solutions, and risk management products. In addition, it develops, markets, and administers customized insurance programs and specialty market solutions for organizations, and their members or affiliates; operates the Global Risk Insight Platform, which provides data, analytics, engagement, and consulting services; and offers ReView that provides advisory, analysis, and benchmarking services to help reinsurers. The company serves individuals, mid-market companies, and large global companies. Aon plc was founded in 1919 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/05 21:56|
|End of Day Share Price||2020/04/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.