Market Cap
US$44.2b
Last Updated
2020/07/05 23:48 UTC
Data Sources
Company Financials +
Executive Summary
Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet 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
Stable Share Price: AON has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.8%
AON
1.6%
US Insurance
4.0%
US Market
1 Year Return
-3.1%
AON
-22.1%
US Insurance
5.0%
US Market
Return vs Industry: AON exceeded the US Insurance industry which returned -22.1% over the past year.
Return vs Market: AON underperformed the US Market which returned 4.9% over the past year.
Shareholder returns
| AON | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.6% | 4.0% |
| 30 Day | -4.4% | -9.8% | -1.1% |
| 90 Day | 10.6% | 10.2% | 21.1% |
| 1 Year | -2.2%-3.1% | -20.0%-22.1% | 7.2%5.0% |
| 3 Year | 46.1%41.8% | -2.1%-10.1% | 36.0%27.1% |
| 5 Year | 98.7%88.1% | 26.5%10.6% | 65.3%46.9% |
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
2 months ago | Simply Wall St
You Have To Love Aon Plc's (NYSE:AON) Dividend2 months ago | Simply Wall St
Aon (NYSE:AON) Shareholders Have Enjoyed A 95% Share Price Gain3 months ago | Simply Wall St
A Sliding Share Price Has Us Looking At Aon plc's (NYSE:AON) P/E RatioValuation
Is Aon undervalued compared to its fair value and its price relative to the market?
0.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AON ($191.45) is trading below our estimate of fair value ($192.15)
Significantly Below Fair Value: AON is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AON is poor value based on its PE Ratio (27.5x) compared to the Insurance industry average (13.2x).
PE vs Market: AON is poor value based on its PE Ratio (27.5x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: AON is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: AON is overvalued based on its PB Ratio (14x) compared to the US Insurance industry average (0.9x).
Next Steps
Future Growth
How is Aon forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
13.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AON's forecast earnings growth (13.8% per year) is above the savings rate (2.2%).
Earnings vs Market: AON's earnings (13.8% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: AON's earnings are forecast to grow, but not significantly.
Revenue vs Market: AON's revenue (4.5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: AON's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AON's Return on Equity is forecast to be very high in 3 years time (53.1%).
Next Steps
Past Performance
How has Aon performed over the past 5 years?
-0.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AON has high quality earnings.
Growing Profit Margin: AON's current net profit margins (14.9%) are higher than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: AON's earnings have declined by -0.5% per year over the past 5 years.
Accelerating Growth: AON's earnings growth over the past year (45.3%) exceeds its 5-year average (-0.5% per year).
Earnings vs Industry: AON earnings growth over the past year (45.3%) exceeded the Insurance industry -1.9%.
Return on Equity
High ROE: Whilst AON's Return on Equity (51.84%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Aon's financial position?
Financial Position Analysis
Short Term Liabilities: AON's short term assets ($17.3B) exceed its short term liabilities ($17.1B).
Long Term Liabilities: AON's short term assets ($17.3B) exceed its long term liabilities ($9.9B).
Debt to Equity History and Analysis
Debt Level: AON's debt to equity ratio (248.8%) is considered high.
Reducing Debt: AON's debt to equity ratio has increased from 88.4% to 248.8% over the past 5 years.
Debt Coverage: AON's debt is well covered by operating cash flow (25.9%).
Interest Coverage: AON's interest payments on its debt are well covered by EBIT (8.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Aon current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AON's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: AON's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (4.5%).
Stability and Growth of Payments
Stable Dividend: AON's dividends per share have been stable in the past 10 years.
Growing Dividend: AON's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.3%), AON's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AON's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Greg Case (57yo)
15.25yrs
Tenure
US$16,007,843
Compensation
Mr. Gregory C. Case, also known as Greg, has been the Chief Executive Officer and Executive Director of Aon plc and Aon Corporation at Aon Hewitt LLC since April 4, 2005. He serves as Chief Executive Offic ...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($USD16.01M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 15.25yrs | US$16.01m | 0.52% $231.1m | |
| President | 0.42yr | US$4.28m | 0.044% $19.4m | |
| Executive VP of Global Finance & CFO | 12.33yrs | US$7.74m | 0.095% $42.0m | |
| COO and CEO of Data & Analytic Services | 3.25yrs | US$3.70m | 0.030% $13.1m | |
| Chief Accounting Officer | no data | no data | 0.0015% $663.6k | |
| Chief Administrative Officer | no data | no data | no data | |
| Senior VP & Head of Investor Relations | 0.83yr | no data | no data | |
| Executive VP | 1yr | no data | 0.0039% $1.7m | |
| Senior Vice President of Corporate Development | 12.17yrs | no data | no data | |
| Global Chief Marketing Officer | no data | no data | 0.0073% $3.2m |
3.3yrs
Average Tenure
48yo
Average Age
Experienced Management: AON's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 15.25yrs | US$16.01m | 0.52% $231.1m | |
| Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions | 1.17yrs | no data | no data | |
| Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia | 7.67yrs | no data | no data | |
| Independent Non-Executive Director | 22.25yrs | US$342.08k | 0.021% $9.3m | |
| Independent Non-Executive Chairman of the Board | 11.92yrs | US$670.15k | 0.13% $55.4m | |
| Independent Non-Executive Director | 17.5yrs | US$347.08k | 0.015% $6.8m | |
| Chairman of Aon Specialty and Director of Aon Benfield | 11.58yrs | no data | no data | |
| Independent Non-Executive Director | 16.17yrs | US$362.82k | 0.016% $7.0m | |
| Global Chairman of Reinsurance Solutions | 2.33yrs | no data | no data | |
| Executive Chairman of Reinsurance Solutions Business | 1.17yrs | no data | no data |
11.8yrs
Average Tenure
62yo
Average Age
Experienced Board: AON's board of directors are seasoned and experienced ( 11.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AON insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$44.242b
- Shares outstanding: 231.09m
- 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 |
| 4VK | 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 |
| A1ON34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance solutions provider; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as 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 offers strategic design consulting services on their retirement programs, actuarial services, and risk management for organizations; advice services on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions; and advice and solutions that help clients in accelerating business outcomes by enhancing the performance of their people, including assessment and optimized deployment, as well as the design, alignment, and benchmarking of compensation to business strategy and performance outcomes. Further, the company 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. Aon plc was founded in 1919 and is based in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:48 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.