Market Cap
US$45.8b
Last Updated
2019/08/22 23:32 UTC
Data Sources
Company Financials +
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
| AON | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 1.6% | 2.9% |
| 30 Day | -0.3% | -2.6% | -2.3% |
| 90 Day | 9.2% | 1.9% | 3.1% |
| 1 Year | 36.9%35.6% | 10.9%8.2% | 2.4%0.2% |
| 3 Year | 82.0%76.3% | 44.1%33.2% | 41.7%32.4% |
| 5 Year | 136.4%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
3 days ago | Simply Wall St
Did Aon plc (NYSE:AON) Insiders Sell Shares?2 weeks ago | Simply Wall St
Is Aon's (NYSE:AON) Share Price Gain Of 117% Well Earned?3 weeks ago | Simply Wall St
Is It Smart To Buy Aon plc (NYSE:AON) Before It Goes Ex-Dividend?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
| Entity | Individual |
| Role | Co-President Co-President |
| Shares | 7,500 |
| Max Price | US$178.50 |
| Entity | Individual |
| Shares | 5,200 |
| Max Price | US$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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/22 23:32 |
| End of Day Share Price | 2019/08/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.