Aon historically has demonstrated modest growth and strong and stable free cash flow, and we expect much of the same going forward, although swings in the insurance market and the pandemic have created some recent ups and downs. In our view, Aon is a fundamentally attractive business, with a variety of operations that share the commonality of sticky customer relationships, limited capital requirements, and flexible cost structures.
The tollbooth nature of its brokerage operations makes Aon a relatively stable producer of free cash flow.
Aon's established position in relatively mature markets lowers its long-term growth prospects.
|
Metric
|
AON
|
WTW
|
TRV
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.00 | 18.20 | 15.63 |
Price/Book Value | — | 2.86 | 1.96 |
Price/Sales | 4.77 | 2.96 | 1.16 |
Price/Cash Flow | 21.45 | 16.38 | 4.64 |
|
Metric
|
AON
|
WTW
|
TRV
|
|---|---|---|---|
Quick Ratio | 0.20 | 0.33 | — |
Current Ratio | 1.00 | 1.06 | — |
Interest Coverage | 7.48 | 6.44 | 10.88 |
|
Metric
|
AON
|
WTW
|
TRV
|
|---|---|---|---|
Return on Assets (Normalized) | 8.52% | 5.15% | 2.61% |
Return on Equity (Normalized) | — | 15.72% | 13.93% |
Return on Invested Capital (Normalized) | 27.84% | 11.07% | 11.40% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MMC
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BRO
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ERIE
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CRVL
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BRP
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CRD.B
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CRD.A
| Crawford & Co Class A | — | Qyh | $483.4 Mil |
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