Market Cap
US$54.6b
Last Updated
2020/02/19 00:06 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.
Rewards
Risk Analysis
No risks detected for AON from our risk checks.
Snowflake Analysis
Proven track record with reasonable growth potential.
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
1.9%
AON
-0.4%
US Insurance
0.06%
US Market
1 Year Return
36.2%
AON
17.4%
US Insurance
19.4%
US Market
Return vs Industry: AON exceeded the US Insurance industry which returned 17.4% over the past year.
Return vs Market: AON exceeded the US Market which returned 19.4% over the past year.
Shareholder returns
| AON | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | -0.4% | 0.06% |
| 30 Day | 11.1% | 2.8% | 1.1% |
| 90 Day | 18.3% | 6.9% | 8.9% |
| 1 Year | 37.4%36.2% | 20.2%17.4% | 21.9%19.4% |
| 3 Year | 109.8%103.5% | 36.0%25.6% | 48.9%39.3% |
| 5 Year | 147.5%134.2% | 73.2%52.4% | 71.9%53.1% |
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
1 week ago | Simply Wall St
Have Insiders Been Selling Aon plc (NYSE:AON) Shares?3 weeks ago | Simply Wall St
Is It Smart To Buy Aon plc (NYSE:AON) Before It Goes Ex-Dividend?3 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Aon plc (NYSE:AON)?Valuation
Is Aon undervalued compared to its fair value and its price relative to the market?
10.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AON ($235.27) is trading below our estimate of fair value ($263.93)
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 (36.6x) compared to the Insurance industry average (13.6x).
PE vs Market: AON is poor value based on its PE Ratio (36.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: AON is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: AON is overvalued based on its PB Ratio (16.2x) compared to the US Insurance industry average (1.1x).
Next Steps
Future Growth
How is Aon forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AON's forecast earnings growth (20.5% per year) is above the savings rate (1.7%).
Earnings vs Market: AON's earnings (20.5% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AON's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AON's revenue (5.5% 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 (79.4%).
Next Steps
Past Performance
How has Aon performed over the past 5 years?
-4.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AON has high quality earnings.
Growing Profit Margin: AON's current net profit margins (13.9%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: AON's earnings have declined by -4% per year over the past 5 years.
Accelerating Growth: AON's earnings growth over the past year (44.6%) exceeds its 5-year average (-4% per year).
Earnings vs Industry: AON earnings growth over the past year (44.6%) exceeded the Insurance industry 22.4%.
Return on Equity
High ROE: Whilst AON's Return on Equity (45.64%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
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
Balance Sheet
Inventory Level: AON has a low level of unsold assets or inventory.
Debt Coverage by Assets: AON's debt is covered by short term assets (assets are 2.2x debt).
Financial Institutions Analysis
Asset Level: AON's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AON has a sufficient allowance for bad loans.
Low Risk Liabilities: AON reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AON has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AON has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AON has an appropriate level of bad loans.
Next Steps
Dividend
What is Aon's current dividend yield, its reliability and sustainability?
0.75%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AON's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: AON's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: AON is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AON is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AON is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AON's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Greg Case (56yo)
14.8yrs
Tenure
US$16,163,875
Compensation
Mr. Gregory C. Case, also known as Greg, has been the Chief Executive Officer and Executive Director of Aon plc and Aon Corporation at Aon Hewitt LLC since April 4, 2005. He serves as Chief Executive Offic ...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($USD16.16M) is above average for companies of similar size in the US market ($USD10.78M).
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 | 14.8yrs | US$16.16m | 0.48% $260.9m | |
| Co-President | 1.8yrs | US$4.54m | 0.035% $19.1m | |
| Co-President | 1.8yrs | US$4.50m | 0.053% $29.2m | |
| Executive VP of Global Finance & CFO | 11.9yrs | US$12.32m | 0.097% $52.7m | |
| Global COO and CEO of Data & Analytic Services | 2.8yrs | no data | 0.022% $12.1m | |
| Chief Accounting Officer | 0yrs | no data | 0.00095% $518.6k | |
| Chief Administrative Officer | 0yrs | no data | no data | |
| Senior VP & Head of Investor Relations | 0.4yrs | no data | no data | |
| Executive VP | 0.6yrs | no data | 0.0019% $1.0m | |
| Senior Vice President of Corporate Development | 11.8yrs | no data | no data |
2.3yrs
Average Tenure
50yo
Average Age
Experienced Management: AON's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 14.8yrs | US$16.16m | 0.48% $260.9m | |
| Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions | 0.8yrs | no data | no data | |
| Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia | 7.3yrs | no data | no data | |
| Independent Non-Executive Director | 21.8yrs | US$397.65k | 0.020% $11.2m | |
| Independent Non-Executive Chairman of the Board | 11.5yrs | US$803.26k | 0.094% $51.3m | |
| Independent Non-Executive Director | 17.1yrs | US$372.71k | 0.015% $8.2m | |
| Chairman of Aon Specialty and Director of Aon Benfield | 11.2yrs | no data | no data | |
| Independent Non-Executive Director | 15.8yrs | US$387.45k | 0.015% $8.4m | |
| Global Chairman of Reinsurance Solutions | 1.9yrs | no data | no data | |
| Executive Chairman of Reinsurance Solutions Business | 0.8yrs | no data | no data |
11.3yrs
Average Tenure
61yo
Average Age
Experienced Board: AON's board of directors are seasoned and experienced ( 11.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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$54.591b
- Shares outstanding: 231.58m
- 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 |
| 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 advisory and solutions based on risk, retirement, and health to clients. 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 in the United Kingdom and internationally. 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 | 2020/02/19 00:06 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| 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.