AON PLC-CLASS A (AON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AON - IE00BLP1HW54 - Common Stock
345.2 USD
-2.51 (-0.72%)
345.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AON. AON was compared to 147 industry peers in the Insurance industry. AON has an excellent profitability rating, but 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
AON had positive earnings in the past year.
AON had a positive operating cash flow in the past year.
Each year in the past 5 years AON has been profitable.
In the past 5 years AON always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, AON belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
AON's Return On Equity of 34.24% is amongst the best of the industry. AON outperforms 98.65% of its industry peers.
AON has a better Return On Invested Capital (13.63%) than 97.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AON is significantly above the industry average of 14.89%.
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
Looking at the Profit Margin, with a value of 15.96%, AON belongs to the top of the industry, outperforming 81.76% of the companies in the same industry.
AON's Profit Margin has improved in the last couple of years.
AON has a better Operating Margin (26.70%) than 89.86% 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 93.24% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AON is creating value.
The number of shares outstanding for AON has been increased compared to 1 year ago.
Compared to 5 years ago, AON has less shares outstanding
The debt/assets ratio for AON is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that AON is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, AON belongs to the top of the industry, outperforming 86.49% 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 has a worse Debt to FCF ratio (5.52) than 64.19% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that AON has dependencies on debt financing.
AON has a worse Debt to Equity ratio (1.95) than 93.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.97
WACC6.91%
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.
The Current ratio of AON (1.06) is better than 80.41% of its industry peers.
A Quick Ratio of 1.06 indicates that AON should not have too much problems paying its short term obligations.
AON has a Quick ratio of 1.06. This is amongst the best in the industry. AON outperforms 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.
Measured over the past years, AON shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
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.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y8.98%
EPS Next 2Y10.66%
EPS Next 3Y11.33%
EPS Next 5Y10.38%
Revenue Next Year9.68%
Revenue Next 2Y5.32%
Revenue Next 3Y6.87%
Revenue Next 5Y5.74%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AON is valuated rather expensively with a Price/Earnings ratio of 20.76.
Based on the Price/Earnings ratio, AON is valued a bit more expensive than 70.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, AON is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.92 indicates a rather expensive valuation of AON.
AON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AON is more expensive than 68.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, AON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 17.92 |
4.2 Price Multiples
AON's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AON is valued a bit more expensive than the industry average as 67.57% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.41 | ||
| EV/EBITDA | 13.12 |
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.
The excellent profitability rating of AON may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)1.82
EPS Next 2Y10.66%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
AON has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 3.48, AON is paying slightly less dividend.
With a Dividend Yield of 0.86, AON pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of AON grows each year by 9.31%, which is quite nice.
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
22.59% of the earnings are spent on dividend by AON. This is a low number and 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 3Y11.33%
345.2
-2.51 (-0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change-0.88%
Ins Owners1.06%
Ins Owner Change-0.86%
Market Cap74.20B
Revenue(TTM)17.03B
Net Income(TTM)2.72B
Analysts75.56
Price Target410.28 (18.85%)
Short Float %0.93%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-2.83%
PT rev (3m)-1.9%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 17.92 | ||
| P/S | 4.36 | ||
| P/FCF | 24.41 | ||
| P/OCF | 22.59 | ||
| P/B | 9.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.12 |
EPS(TTM)16.63
EY4.82%
EPS(NY)19.26
Fwd EY5.58%
FCF(TTM)14.14
FCFY4.1%
OCF(TTM)15.28
OCFY4.43%
SpS79.22
BVpS36.94
TBVpS-63.24
PEG (NY)2.31
PEG (5Y)1.82
Graham Number117.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 34.24% | ||
| ROCE | 17.13% | ||
| ROIC | 13.63% | ||
| ROICexc | 21.29% | ||
| ROICexgc | N/A | ||
| OM | 26.7% | ||
| 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 | 1.95 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 25.29% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 5.62 | ||
| Cash Conversion | 59.59% | ||
| Profit Quality | 111.85% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.63 |
F-Score7
WACC6.91%
ROIC/WACC1.97
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 Y8.98%
EPS Next 2Y10.66%
EPS Next 3Y11.33%
EPS Next 5Y10.38%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y8.79%
Revenue growth 5Y7.35%
Sales Q2Q%7.42%
Revenue Next Year9.68%
Revenue Next 2Y5.32%
Revenue Next 3Y6.87%
Revenue Next 5Y5.74%
EBIT growth 1Y9.04%
EBIT growth 3Y26.43%
EBIT growth 5Y10.02%
EBIT Next Year19.06%
EBIT Next 3Y11.82%
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%.