Aon (AON) Stock Analysis
Here is a fundamental analysis of Aon (AON), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| 1-Year Return | -5.31% | 8.77% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| 1-Year Volatility | 23.52% | 27.79% |
| Beta | 0.70 | 0.55 |
Company Profile
| Profile Item | AON |
|---|---|
| Name | Aon plc |
| Country/Region | Ireland |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Insurance Brokers |
| Market Capitalization | 71.61 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 2, 1980 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Aon (AON) trades at P/E ratio of 18.41, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
AON
Insurance industry group
18.41
Group distribution
- Max
- 25.24
- AON
- 18.41
- Q3
- 16.46
- Median
- 12.28
- Q1
- 8.66
- Min
- 3.44
Largest peers
- MRSH
- 21.09
- AON
- 18.41
- MFC
- 16.19
- AFL
- 13.46
- CB
- 11.60
- PGR
- 10.33
- TRV
- 9.08
Price-to-Sales Ratio (TTM)
Aon (AON) trades at 4.10 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
AON
Insurance industry group
4.10
Group distribution
- AON
- 4.10
- Max
- 3.96
- Q3
- 2.13
- Median
- 1.17
- Q1
- 0.82
- Min
- 0.13
Largest peers
- AON
- 4.10
- AFL
- 3.31
- MRSH
- 2.95
- MFC
- 2.10
- CB
- 2.09
- PGR
- 1.33
- TRV
- 1.32
Price-to-Book Ratio (MRQ)
Aon (AON) trades at 7.28 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
AON
Insurance industry group
7.28
Group distribution
- AON
- 7.28
- Max
- 3.70
- Q3
- 2.21
- Median
- 1.61
- Q1
- 1.12
- Min
- -0.14
Largest peers
- AON
- 7.28
- MRSH
- 5.58
- PGR
- 3.70
- TRV
- 2.02
- AFL
- 2.01
- MFC
- 1.92
- CB
- 1.73
Valuation at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 18.41 | 12.28 |
| Price-to-Sales Ratio (TTM) | 4.10 | 1.17 |
| Price-to-Book Ratio (MRQ) | 7.28 | 1.61 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Aon (AON) posts ROE of 46.45%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
AON
Insurance industry group
46.45%
Group distribution
- AON
- 46.45%
- Max
- 38.88%
- Q3
- 22.34%
- Median
- 14.13%
- Q1
- 9.51%
- Min
- -6.23%
Largest peers
- AON
- 46.45%
- PGR
- 37.90%
- MRSH
- 27.57%
- TRV
- 25.27%
- AFL
- 16.47%
- CB
- 15.43%
- MFC
- 12.56%
Net Profit Margin (TTM)
Aon (AON) keeps 22.54% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
AON
Insurance industry group
22.54%
Group distribution
- Max
- 38.86%
- AON
- 22.54%
- Q3
- 19.36%
- Median
- 11.07%
- Q1
- 5.09%
- Min
- -2.80%
Largest peers
- AFL
- 25.60%
- AON
- 22.54%
- MFC
- 20.04%
- CB
- 18.53%
- TRV
- 15.54%
- MRSH
- 14.26%
- PGR
- 12.93%
Operating Profit Margin (TTM)
operating margin is set aside for Aon (AON) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 46.45% | 14.13% |
| Return on Assets (TTM) | 6.05% | 2.66% |
| Net Profit Margin (TTM) | 22.54% | 11.07% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Aon (AON) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for Aon (AON) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Aon (AON) has dividend yield of 0.98%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
AON
Insurance industry group
0.98%
Group distribution
- Max
- 5.43%
- Q3
- 2.64%
- Median
- 1.35%
- AON
- 0.98%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 6.84%
- MFC
- 3.33%
- MRSH
- 2.13%
- AFL
- 2.07%
- TRV
- 1.64%
- CB
- 1.24%
- AON
- 0.98%
Dividend Payout Ratio (TTM)
Aon (AON) has payout ratio of 16.36%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
AON
Insurance industry group
16.36%
Group distribution
- Max
- 86.52%
- Q3
- 35.43%
- AON
- 16.36%
- Median
- 14.92%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 70.70%
- MFC
- 52.02%
- MRSH
- 43.94%
- AFL
- 26.86%
- AON
- 16.36%
- CB
- 13.72%
- TRV
- 13.13%
Dividends at a Glance
| Metric | Current stock: AON | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.98% | 1.35% |
| Dividend Payout Ratio (TTM) | 16.36% | 14.92% |