NYSE:AON

Stock Analysis Report

Executive Summary

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients.

Snowflake

Fundamentals

Reasonable growth potential with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Aon's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

NYSE:AON

1.6%

US Insurance

2.9%

US Market


1 Year Return

35.6%

NYSE:AON

8.2%

US Insurance

0.2%

US Market

AON outperformed the Insurance industry which returned 8.2% over the past year.

AON outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

AONIndustryMarket
7 Day2.6%1.6%2.9%
30 Day-0.3%-2.6%-2.3%
90 Day9.2%1.9%3.1%
1 Year36.9%35.6%10.9%8.2%2.4%0.2%
3 Year82.0%76.3%44.1%33.2%41.7%32.4%
5 Year136.4%123.4%64.0%44.5%55.1%37.9%

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

Valuation

Is Aon undervalued based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Aon's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Aon's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Aon is overvalued based on earnings compared to the US Insurance industry average.

Aon is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Aon is poor value based on expected growth next year.


Price Based on Value of Assets

Aon is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Aon expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aon's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Aon's earnings are expected to grow significantly at over 20% yearly.

Aon's revenue growth is positive but not above the United States of America market average.

Aon's earnings growth is expected to exceed the United States of America market average.

Aon's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Aon is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Aon performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aon's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Aon's 1-year earnings growth exceeds its 5-year average (63.2% vs -8.7%)

Aon's earnings growth has exceeded the US Insurance industry average in the past year (63.2% vs 4.3%).


Return on Equity

Whilst Aon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Aon used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Aon has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aon's financial position?


Financial Position Analysis

Aon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aon's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Aon's level of debt (193.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (76.7% vs 193.8% today).

Debt is well covered by operating cash flow (21.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

What is Aon's current dividend yield, its reliability and sustainability?

0.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aon's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Aon's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.6x coverage).


Next Steps

Management

What is the CEO of Aon's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Greg Case (56yo)

14.3yrs

Tenure

US$16,163,875

Compensation

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

Greg's remuneration is higher than average for companies of similar size in United States of America.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

50yo

Average Age

The average tenure for the Aon management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Aon board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,338,75009 May 19
Eric Andersen
EntityIndividual
Role
Co-President
Co-President
Shares7,500
Max PriceUS$178.50
SellUS$927,61301 May 19
Peter Lieb
EntityIndividual
Shares5,200
Max PriceUS$180.15

Ownership Breakdown


Management Team

  • John Bruno (54yo)

    Global COO and CEO of Data & Analytic Services

    • Tenure: 2.3yrs
  • Scott Malchow

    SVP, IR and Corporate FP&A

    • Tenure: 12.9yrs
  • Greg Case (56yo)

    CEO & Executive Director

    • Tenure: 14.3yrs
    • Compensation: US$16.16m
  • Frances Sigurani

    Chief Administrative Officer

    • Tenure: 0.0yrs
  • Eric Andersen (54yo)

    Co-President

    • Tenure: 1.3yrs
    • Compensation: US$4.54m
  • Christa Davies (47yo)

    Executive VP of Global Finance & CFO

    • Tenure: 11.4yrs
    • Compensation: US$12.32m
  • Mike O'Connor (50yo)

    Co-President

    • Tenure: 1.3yrs
    • Compensation: US$4.50m
  • Andy Weitz (42yo)

    Chief Marketing Officer

    • Tenure: 0.0yrs
  • Ken Bond

    Senior Vice President of Corporate Development

    • Tenure: 11.3yrs
  • Darren Zeidel (47yo)

    Executive VP

    • Tenure: 0.1yrs

Board Members

  • Dick Notebaert (72yo)

    Non-Executive Director

    • Tenure: 21.3yrs
    • Compensation: US$397.65k
  • Lester Knight (61yo)

    Non-Executive Chairman of the Board

    • Tenure: 11.0yrs
    • Compensation: US$803.26k
  • Mike Losh (73yo)

    Non-Executive Director

    • Tenure: 16.6yrs
    • Compensation: US$372.71k
  • Chily Chilton (61yo)

    Chairman of Aon Specialty and Director of Aon Benfield

    • Tenure: 10.7yrs
  • Gloria Santona (69yo)

    Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: US$387.45k
  • Carlo Clavarino

    Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions

    • Tenure: 0.3yrs
  • Greg Case (56yo)

    CEO & Executive Director

    • Tenure: 14.3yrs
    • Compensation: US$16.16m
  • Dominic Christian (58yo)

    Global Chairman of Reinsurance Solutions

    • Tenure: 1.4yrs
  • Hristo Borissov

    Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia

    • Tenure: 6.8yrs
  • Richard Jones

    Executive Chairman of Reinsurance Solutions Business

    • Tenure: 0.3yrs

Company Information

Aon plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aon plc
  • Ticker: AON
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$45.782b
  • Shares outstanding: 235.84m
  • Website: https://www.aon.com

Number of Employees


Location

  • Aon plc
  • The Leadenhall Building
  • The Aon Centre
  • London
  • Greater London
  • EC3V 4AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AONNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDJun 1980
9H6DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJun 1980
0XHLLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDJun 1980

Biography

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients. It offers commercial risk solutions, including retail brokerage, cyber, and global r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:32
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.