Stock Analysis Report

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Executive Summary

Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide.

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




US Insurance


US Market

1 Year Return




US Insurance


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

7 Day0.8%1.6%4.0%
30 Day-4.4%-9.8%-1.1%
90 Day10.6%10.2%21.1%
1 Year-2.2%-3.1%-20.0%-22.1%7.2%5.0%
3 Year46.1%41.8%-2.1%-10.1%36.0%27.1%
5 Year98.7%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


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: 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?


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?


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


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


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


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Greg Case (57yo)





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

Gregory Case
CEO & Executive Director15.25yrsUS$16.01m0.52% $231.1m
Eric Andersen
President0.42yrUS$4.28m0.044% $19.4m
Christa Davies
Executive VP of Global Finance & CFO12.33yrsUS$7.74m0.095% $42.0m
John Bruno
COO and CEO of Data & Analytic Services3.25yrsUS$3.70m0.030% $13.1m
Michael Neller
Chief Accounting Officerno datano data0.0015% $663.6k
Frances Sigurani
Chief Administrative Officerno datano datano data
Leslie Follmer
Senior VP & Head of Investor Relations0.83yrno datano data
Darren Zeidel
Executive VP1yrno data0.0039% $1.7m
Kenneth Bond
Senior Vice President of Corporate Development12.17yrsno datano data
Andy Weitz
Global Chief Marketing Officerno datano data0.0073% $3.2m


Average Tenure


Average Age

Experienced Management: AON's management team is considered experienced (3.3 years average tenure).

Board Members

Gregory Case
CEO & Executive Director15.25yrsUS$16.01m0.52% $231.1m
Carlo Clavarino
Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions1.17yrsno datano data
Hristo Borissov
Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia7.67yrsno datano data
Richard Notebaert
Independent Non-Executive Director22.25yrsUS$342.08k0.021% $9.3m
Lester Knight
Independent Non-Executive Chairman of the Board11.92yrsUS$670.15k0.13% $55.4m
J. Losh
Independent Non-Executive Director17.5yrsUS$347.08k0.015% $6.8m
Grahame Chilton
Chairman of Aon Specialty and Director of Aon Benfield11.58yrsno datano data
Gloria Santona
Independent Non-Executive Director16.17yrsUS$362.82k0.016% $7.0m
Dominic Christian
Global Chairman of Reinsurance Solutions2.33yrsno datano data
Richard Jones
Executive Chairman of Reinsurance Solutions Business1.17yrsno datano data


Average Tenure


Average Age

Experienced Board: AON's board of directors are seasoned and experienced ( 11.8 years average tenure).


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


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


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AONNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDJun 1980
4VKDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJun 1980
0XHLLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDJun 1980
A1ON34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:48
End of Day Share Price2020/07/02 00:00
Annual Earnings2019/12/31

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.