AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AON • IE00BLP1HW54
349.64 USD
+6.69 (+1.95%)
At close: Jan 30, 2026
349.64 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
AON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. While AON has a great profitability rating, there are some minor concerns on its financial health. AON is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AON was profitable.
- AON had a positive operating cash flow in the past year.
- In the past 5 years AON has always been profitable.
- AON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AON (5.26%) is better than 85.81% of its industry peers.
- With an excellent Return On Equity value of 34.24%, AON belongs to the best of the industry, outperforming 98.65% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 13.63%, AON belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
- AON had an Average Return On Invested Capital over the past 3 years of 20.44%. This is significantly above the industry average of 14.94%.
- The 3 year average ROIC (20.44%) for AON is well above the current ROIC(13.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROIC | 13.63% |
ROA(3y)6.96%
ROA(5y)6.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.44%
ROIC(5y)17.82%
1.3 Margins
- AON's Profit Margin of 15.96% is amongst the best of the industry. AON outperforms 81.76% of its industry peers.
- AON's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 26.70%, AON belongs to the top of the industry, outperforming 87.84% of the companies in the same industry.
- AON's Operating Margin has improved in the last couple of years.
- The Gross Margin of AON (47.22%) is better than 93.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.7% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.22% |
OM growth 3Y16.22%
OM growth 5Y2.49%
PM growth 3Y17.99%
PM growth 5Y3.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AON is creating value.
- AON has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AON has been reduced compared to 5 years ago.
- AON has a worse debt/assets ratio than last year.
2.2 Solvency
- AON has an Altman-Z score of 1.63. This is a bad value and indicates that AON is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.63, AON belongs to the best of the industry, outperforming 87.84% of the companies in the same industry.
- The Debt to FCF ratio of AON is 5.52, which is a neutral value as it means it would take AON, 5.52 years of fcf income to pay off all of its debts.
- AON's Debt to FCF ratio of 5.52 is on the low side compared to the rest of the industry. AON is outperformed by 64.19% of its industry peers.
- AON has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
- AON has a worse Debt to Equity ratio (1.95) than 91.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.94
WACC7.04%
2.3 Liquidity
- AON has a Current Ratio of 1.06. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.06, AON belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
- AON has a Quick Ratio of 1.06. This is a normal value and indicates that AON is financially healthy and should not expect problems in meeting its short term obligations.
- AON has a better Quick ratio (1.06) than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.41% over the past year.
- Measured over the past years, AON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.42% on average per year.
- Looking at the last year, AON shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
- AON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)9.41%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%12.13%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
3.2 Future
- The Earnings Per Share is expected to grow by 10.38% on average over the next years. This is quite good.
- AON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y8.91%
EPS Next 2Y10.54%
EPS Next 3Y11.24%
EPS Next 5Y10.38%
Revenue Next Year9.68%
Revenue Next 2Y7.5%
Revenue Next 3Y6.83%
Revenue Next 5Y5.74%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AON is valuated rather expensively with a Price/Earnings ratio of 21.02.
- Based on the Price/Earnings ratio, AON is valued a bit more expensive than 69.59% of the companies in the same industry.
- AON is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.19, the valuation of AON can be described as rather expensive.
- AON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AON is more expensive than 65.54% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, AON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
- AON's Enterprise Value to EBITDA is on the same level as the industry average.
- 67.57% of the companies in the same industry are cheaper than AON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.72 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.84
EPS Next 2Y10.54%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, AON is not a good candidate for dividend investing.
- AON's Dividend Yield is slightly below the industry average, which is at 2.41.
- Compared to an average S&P500 Dividend Yield of 1.82, AON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of AON is nicely growing with an annual growth rate of 9.31%!
- AON has been paying a dividend for at least 10 years, so it has a reliable track record.
- As AON did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 22.59% of the earnings are spent on dividend by AON. This is a low number and sustainable payout ratio.
- AON's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.59%
EPS Next 2Y10.54%
EPS Next 3Y11.24%
AON PLC-CLASS A / AON FAQ
Can you provide the ChartMill fundamental rating for AON PLC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to AON.
What is the valuation status of AON PLC-CLASS A (AON) stock?
ChartMill assigns a valuation rating of 2 / 10 to AON PLC-CLASS A (AON). This can be considered as Overvalued.
What is the profitability of AON stock?
AON PLC-CLASS A (AON) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for AON stock?
The Price/Earnings (PE) ratio for AON PLC-CLASS A (AON) is 21.02 and the Price/Book (PB) ratio is 9.47.
What is the financial health of AON PLC-CLASS A (AON) stock?
The financial health rating of AON PLC-CLASS A (AON) is 4 / 10.