AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - NYSE:AON - IE00BLP1HW54 - Common Stock
346.32 USD
+6.32 (+1.86%)
346.32 USD
0 (0%)
Overall AON gets a fundamental rating of 5 out of 10. We evaluated AON against 146 industry peers in the Insurance industry. While AON has a great profitability rating, there are some minor concerns on its financial health. AON is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AON was profitable.
In the past year AON had a positive cash flow from operations.
Each year in the past 5 years AON has been profitable.
AON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.26%, AON belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
AON has a better Return On Equity (34.24%) than 98.63% of its industry peers.
AON has a better Return On Invested Capital (13.79%) than 97.95% of its industry peers.
AON had an Average Return On Invested Capital over the past 3 years of 20.44%. This is significantly above the industry average of 4.53%.
The 3 year average ROIC (20.44%) for AON is well above the current ROIC(13.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROIC | 13.79% |
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 83.56% of its industry peers.
In the last couple of years the Profit Margin of AON has grown nicely.
AON's Operating Margin of 26.61% is amongst the best of the industry. AON outperforms 91.78% of its industry peers.
In the last couple of years the Operating Margin of AON has grown nicely.
The Gross Margin of AON (47.22%) is better than 94.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AON is creating value.
Compared to 1 year ago, AON has more shares outstanding
The number of shares outstanding for AON has been reduced compared to 5 years ago.
Compared to 1 year ago, AON has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that AON is in the distress zone and has some risk of bankruptcy.
AON's Altman-Z score of 1.62 is amongst the best of the industry. AON outperforms 86.99% of its industry peers.
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 61.64% of its industry peers.
AON has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.90, AON is not doing good in the industry: 92.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.98
WACC6.98%
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.
AON's Current ratio of 1.06 is fine compared to the rest of the industry. AON outperforms 79.45% of its industry peers.
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 Quick ratio of 1.06. This is in the better half of the industry: AON outperforms 79.45% 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.
AON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.42% yearly.
The Revenue has grown by 14.08% in the past year. This is quite good.
The Revenue has been growing slightly by 7.35% on average over the past years.
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
AON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.38% yearly.
AON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y8.66%
EPS Next 2Y10.66%
EPS Next 3Y11.19%
EPS Next 5Y10.38%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y7.1%
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
With a Price/Earnings ratio of 20.83, AON is valued on the expensive side.
70.55% of the companies in the same industry are cheaper than AON, based on the Price/Earnings ratio.
AON's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 17.98, AON is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AON indicates a slightly more expensive valuation: AON is more expensive than 67.81% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. AON is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AON is valued a bit more expensive than 63.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than 63.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.56 | ||
| EV/EBITDA | 16.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AON does not grow enough to justify the current Price/Earnings ratio.
AON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.82
EPS Next 2Y10.66%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
AON has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 3.33, AON is paying slightly less dividend.
With a Dividend Yield of 0.88, AON pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of AON is nicely growing with an annual growth rate of 9.31%!
AON has paid a dividend for at least 10 years, which is 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
AON pays out 22.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of AON is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP22.59%
EPS Next 2Y10.66%
EPS Next 3Y11.19%
346.32
+6.32 (+1.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.51%
Inst Owner Change0%
Ins Owners1.09%
Ins Owner Change0.24%
Market Cap74.68B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts73.33
Price Target422.23 (21.92%)
Short Float %0.97%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend2.71
Dividend Growth(5Y)9.31%
DP22.59%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.68%
Min EPS beat(2)1.62%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)0.39%
Min EPS beat(4)-6.82%
Max EPS beat(4)3.73%
EPS beat(8)4
Avg EPS beat(8)-0.76%
EPS beat(12)6
Avg EPS beat(12)-0.37%
EPS beat(16)9
Avg EPS beat(16)0.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)2
Avg Revenue beat(16)-1.49%
PT rev (1m)0.42%
PT rev (3m)3.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 17.98 | ||
| P/S | 4.39 | ||
| P/FCF | 24.56 | ||
| P/OCF | 22.74 | ||
| P/B | 9.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.12 |
EPS(TTM)16.63
EY4.8%
EPS(NY)19.26
Fwd EY5.56%
FCF(TTM)14.1
FCFY4.07%
OCF(TTM)15.23
OCFY4.4%
SpS78.97
BVpS36.82
TBVpS-63.03
PEG (NY)2.4
PEG (5Y)1.82
Graham Number117.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROCE | 17.08% | ||
| ROIC | 13.79% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 98.88% | ||
| OM | 26.61% | ||
| PM (TTM) | 15.96% | ||
| GM | 47.22% | ||
| FCFM | 17.85% |
ROA(3y)6.96%
ROA(5y)6.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.44%
ROIC(5y)17.82%
ROICexc(3y)47.15%
ROICexc(5y)39.19%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.44%
ROCE(5y)22.9%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.92%
ROICexc growth 5Y-6.94%
OM growth 3Y16.22%
OM growth 5Y2.49%
PM growth 3Y17.99%
PM growth 5Y3.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 25.29% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.74% | ||
| Profit Quality | 111.85% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.62 |
F-Score7
WACC6.98%
ROIC/WACC1.98
Cap/Depr(3y)68.15%
Cap/Depr(5y)56.12%
Cap/Sales(3y)1.61%
Cap/Sales(5y)1.45%
Profit Quality(3y)115.68%
Profit Quality(5y)128.84%
High Growth Momentum
Growth
EPS 1Y (TTM)9.41%
EPS 3Y9.38%
EPS 5Y11.42%
EPS Q2Q%12.13%
EPS Next Y8.66%
EPS Next 2Y10.66%
EPS Next 3Y11.19%
EPS Next 5Y10.38%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y7.1%
Revenue Next 5Y5.74%
EBIT growth 1Y8.71%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year18.41%
EBIT Next 3Y11.77%
EBIT Next 5Y7.11%
FCF growth 1Y3.3%
FCF growth 3Y11.27%
FCF growth 5Y11.84%
OCF growth 1Y2.11%
OCF growth 3Y11.63%
OCF growth 5Y10.59%
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.
Can you provide the valuation status for AON PLC-CLASS A?
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 financial health for AON stock?
The financial health rating of AON PLC-CLASS A (AON) is 4 / 10.
How sustainable is the dividend of AON PLC-CLASS A (AON) stock?
The dividend rating of AON PLC-CLASS A (AON) is 5 / 10 and the dividend payout ratio is 22.59%.