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Aon PLC Class A AON

Morningstar Rating
$285.03 −20.97 (6.85%)
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Company Report

Aon Earnings: Growth Slows

Aon saw its growth slow in the first quarter, with organic revenue growth of just 5% year over year. While this lags what we've seen from peers, we expect growth to moderate for all of the brokers going forward, and Aon may just be seeing this process play out a bit more quickly. All in all, results for the quarter were roughly in line with what we expect from Aon over the long run. We will maintain our $301 fair value estimate for the narrow-moat company and see the shares as about fairly valued right now.

Price vs Fair Value

AON is trading at a 3% premium.
Price
$311.02
Fair Value
$145.00
Uncertainty
Medium
1-Star Price
$234.54
5-Star Price
$386.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The tollbooth nature of its brokerage operations makes Aon a relatively stable producer of free cash flow.

Bears

Aon's established position in relatively mature markets lowers its long-term growth prospects.

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News

Trading Information

Previous Close Price
$306.00
Day Range
$268.06285.88
52-Week Range
$268.06347.37
Bid/Ask
$284.04 / $285.00
Market Cap
$56.57 Bil
Volume/Avg
4.6 Mil / 959,831

Key Statistics

Price/Earnings (Normalized)
21.64
Price/Sales
4.69
Dividend Yield (Trailing)
0.79%
Dividend Yield (Forward)
0.87%
Total Yield
5.13%

Company Profile

Aon is a leading global provider of insurance and reinsurance brokerage and human resources solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries.
Sector
Financial Services
Industry
Insurance Brokers
Stock Style Box
Large Core
Total Number of Employees
50,000

Competitors

Valuation

Metric
AON
WTW
TRV
Price/Earnings (Normalized)
21.6417.1115.57
Price/Book Value
2.771.95
Price/Sales
4.692.821.15
Price/Cash Flow
21.1015.914.62
Price/Earnings
AON
WTW
TRV

Financial Strength

Metric
AON
WTW
TRV
Quick Ratio
0.200.33
Current Ratio
1.001.12
Interest Coverage
7.486.1610.88
Quick Ratio
AON
WTW
TRV

Profitability

Metric
AON
WTW
TRV
Return on Assets (Normalized)
8.52%5.32%2.61%
Return on Equity (Normalized)
16.26%13.93%
Return on Invested Capital (Normalized)
27.84%11.25%11.40%
Return on Assets
AON
WTW
TRV
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Insurance Brokers Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
MMC
Marsh & McLennan Companies IncPcxknqfwvzRhqycpw$97.5 Bil
AJG
Arthur J. Gallagher & CoJtgm$51.1 Bil
WTW
Willis Towers Watson PLCFlvrygxsSdsnbsb$25.7 Bil
BRO
Brown & Brown IncHcyd$23.2 Bil
ERIE
Erie Indemnity Co Class AMxnjt$20.0 Bil
CRVL
CorVel CorpJtmc$4.1 Bil
BRP
BRP Group Inc Class AWpq$1.7 Bil
CRD.A
Crawford & Co Class ACxrt$478.9 Mil
CRD.B
Crawford & Co Class BFmbz$478.9 Mil

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