Market Cap
US$57.9b
Last Updated
2021/05/07 03:28 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. More Details
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AON's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
7.3%
AON
2.6%
US Insurance
-1.7%
US Market
1 Year Return
38.8%
AON
60.2%
US Insurance
51.8%
US Market
Return vs Industry: AON underperformed the US Insurance industry which returned 60.2% over the past year.
Return vs Market: AON underperformed the US Market which returned 51.8% over the past year.
Shareholder returns
| AON | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.3% | 2.6% | -1.7% |
| 30 Day | 9.6% | 7.1% | 1.5% |
| 90 Day | 15.0% | 17.5% | 3.1% |
| 1 Year | 40.1%38.8% | 64.3%60.2% | 54.4%51.8% |
| 3 Year | 83.1%77.9% | 43.1%32.5% | 63.0%52.8% |
| 5 Year | 155.4%142.7% | 87.1%63.9% | 127.2%101.9% |
Long-Term 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
Aon plc Just Beat Revenue By 5.1%: Here's What Analysts Think Will Happen Next1 week ago | Simply Wall St
Should You Be Excited About Aon plc's (NYSE:AON) 56% Return On Equity?1 month ago | Simply Wall St
Introducing Aon (NYSE:AON), The Stock That Zoomed 129% In The Last Five YearsValuation
Is Aon undervalued compared to its fair value and its price relative to the market?
7.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AON ($256.63) is trading below our estimate of fair value ($276.46)
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 (28x) compared to the US Insurance industry average (13.3x).
PE vs Market: AON is poor value based on its PE Ratio (28x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: AON is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: AON is overvalued based on its PB Ratio (13.6x) compared to the US Insurance industry average (1.2x).
Future Growth
How is Aon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AON's forecast earnings growth (9.7% per year) is above the savings rate (2%).
Earnings vs Market: AON's earnings (9.7% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: AON's earnings are forecast to grow, but not significantly.
Revenue vs Market: AON's revenue (4.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: AON's revenue (4.7% 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 (61.5%).
Past Performance
How has Aon performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AON has high quality earnings.
Growing Profit Margin: AON's current net profit margins (18.5%) are higher than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: AON's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: AON's earnings growth over the past year (28.1%) exceeds its 5-year average (13% per year).
Earnings vs Industry: AON earnings growth over the past year (28.1%) underperformed the Insurance industry 28.3%.
Return on Equity
High ROE: Whilst AON's Return on Equity (49.51%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Aon's financial position?
Financial Position Analysis
Short Term Liabilities: AON's short term assets ($18.9B) exceed its short term liabilities ($16.8B).
Long Term Liabilities: AON's short term assets ($18.9B) exceed its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: AON's debt to equity ratio (166.5%) is considered high.
Reducing Debt: AON's debt to equity ratio has increased from 123.2% to 166.5% over the past 5 years.
Debt Coverage: AON's debt is well covered by operating cash flow (41.4%).
Interest Coverage: AON's interest payments on its debt are well covered by EBIT (9.7x coverage).
Balance Sheet
Dividend
What is Aon current dividend yield, its reliability and sustainability?
0.79%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AON's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AON's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.42%).
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 low payout ratio (19.7%), 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 thoroughly covered by earnings (14.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Greg Case (57 yo)
16.08yrs
Tenure
US$16,007,843
Compensation
Mr. Gregory Clarence Case, also known as Greg, has been the Chief Executive Officer and Executive Director of Aon plc at Aon Hewitt LLC since April 4, 2005. Mr. Case served as the President of Aon plc sinc...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($USD16.01M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AON's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
Experienced Board: AON's board of directors are seasoned and experienced ( 13 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$57.908b
- Shares outstanding: 225.65m
- Website: https://www.aon.com
Number of Employees
Location
- Aon plc
- Metropolitan Building
- James Joyce Street
- Dublin
- Co. Dublin
- D01 K0Y8
- Ireland
Listings
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, an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 03:28 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.