NYSE:AON

Stock Analysis Report

Executive Summary

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients.

Snowflake

Fundamentals

Proven track record with reasonable growth potential 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

0.6%

AON

-1.2%

US Insurance

0.07%

US Market


1 Year Return

29.4%

AON

15.3%

US Insurance

8.9%

US Market

Return vs Industry: AON exceeded the US Insurance industry which returned 15.3% over the past year.

Return vs Market: AON exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

AONIndustryMarket
7 Day0.6%-1.2%0.07%
30 Day0.2%-2.8%-0.3%
90 Day-1.3%-3.7%-1.6%
1 Year30.7%29.4%18.2%15.3%11.3%8.9%
3 Year85.3%79.4%44.2%33.1%46.3%36.8%
5 Year145.2%131.7%66.2%46.3%62.1%44.3%

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

Valuation

Is Aon undervalued compared to its fair value and its price relative to the market?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AON ($193.42) is trading below our estimate of fair value ($214.39)

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 (34.4x) compared to the Insurance industry average (15.8x).

PE vs Market: AON is poor value based on its PE Ratio (34.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AON is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: AON is overvalued based on its PB Ratio (11.9x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Aon forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AON's forecast earnings growth (24.6% per year) is above the savings rate (2.7%).

Earnings vs Market: AON's earnings (24.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AON's revenue (5.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AON's revenue (5.8% 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 (62.7%).


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

Earnings Trend: AON's earnings have declined by -8.7% per year over the past 5 years.

Accelerating Growth: AON's earnings growth over the past year (63.2%) exceeds its 5-year average (-8.7% per year).

Earnings vs Industry: AON earnings growth over the past year (63.2%) exceeded the Insurance industry 2%.


Return on Equity

High ROE: Whilst AON's Return on Equity (35.83%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: AON has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: AON has significantly improved its Return on Capital Employed over the past 3 years.


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 2.207930x 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?

0.91%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Aon before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AON's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AON's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (29.2%), 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 (17.9% payout ratio).


Next Steps

Management

What is the CEO of Aon's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Greg Case (56yo)

14.5yrs

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 ($USD16.16M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: AON's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

11.0yrs

Average Tenure

61yo

Average Age

Experienced Board: AON's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: AON insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,461,46803 Sep 19
John Bruno
EntityIndividual
Role
Chief Operating Officer
Global COO and CEO of Data & Analytic Services
Shares7,600
Max PriceUS$194.02
SellUS$1,338,75009 May 19
Eric Andersen
EntityIndividual
Role
Co-President
Co-President
Shares7,500
Max PriceUS$178.50
SellUS$927,61301 May 19
Peter Lieb
EntityIndividual
Shares5,200
Max PriceUS$180.15

Ownership Breakdown


Management Team

  • John Bruno (54yo)

    Global COO and CEO of Data & Analytic Services

    • Tenure: 2.5yrs
  • Greg Case (56yo)

    CEO & Executive Director

    • Tenure: 14.5yrs
    • Compensation: US$16.16m
  • Frances Sigurani

    Chief Administrative Officer

    • Tenure: 0yrs
  • Eric Andersen (54yo)

    Co-President

    • Tenure: 1.4yrs
    • Compensation: US$4.54m
  • Christa Davies (47yo)

    Executive VP of Global Finance & CFO

    • Tenure: 11.6yrs
    • Compensation: US$12.32m
  • Mike O'Connor (50yo)

    Co-President

    • Tenure: 1.4yrs
    • Compensation: US$4.50m
  • Andy Weitz (42yo)

    Chief Marketing Officer

    • Tenure: 0yrs
  • Ken Bond

    Senior Vice President of Corporate Development

    • Tenure: 11.4yrs
  • Darren Zeidel (47yo)

    Executive VP

    • Tenure: 0.3yrs
  • Leslie Follmer

    Senior VP & Head of Investor Relations

    • Tenure: 0.08yrs

Board Members

  • Dick Notebaert (72yo)

    Non-Executive Director

    • Tenure: 21.5yrs
    • Compensation: US$397.65k
  • Lester Knight (61yo)

    Non-Executive Chairman of the Board

    • Tenure: 11.2yrs
    • Compensation: US$803.26k
  • Mike Losh (73yo)

    Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: US$372.71k
  • Chily Chilton (61yo)

    Chairman of Aon Specialty and Director of Aon Benfield

    • Tenure: 10.8yrs
  • Gloria Santona (69yo)

    Non-Executive Director

    • Tenure: 15.4yrs
    • Compensation: US$387.45k
  • Carlo Clavarino

    Chairman & Head of M&A of EMEA Commercial Risk Solutions and CEO of MENA Commercial Risk Solutions

    • Tenure: 0.4yrs
  • Greg Case (56yo)

    CEO & Executive Director

    • Tenure: 14.5yrs
    • Compensation: US$16.16m
  • Dominic Christian (58yo)

    Global Chairman of Reinsurance Solutions

    • Tenure: 1.6yrs
  • Hristo Borissov

    Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia

    • Tenure: 6.9yrs
  • Richard Jones

    Executive Chairman of Reinsurance Solutions Business

    • Tenure: 0.4yrs

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$45.617b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AONNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDJun 1980
9H6DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJun 1980
0XHLLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:31
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.