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Aon PLC Class A AON

Morningstar Rating
$315.32 −0.04 (0.01%)
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Company Report

Aon Earnings: Growth Holds Up

Aon finished the year on a solid note as growth accelerated slightly in the fourth quarter, with the company also closing the gap on its closest peer. In the quarter, overall revenue was up 8% year over year on a reported basis and 7% on an organic basis. We think Aon continues to benefit from some tailwinds, but the company will ultimately return to the low- to mid-single-digit growth it has generated historically. We will maintain our $291 per share fair value estimate for the narrow-moat company and see the shares as fairly valued.

Price vs Fair Value

AON is trading at a 8% premium.
Price
$315.32
Fair Value
$819.00
Uncertainty
Medium
1-Star Price
$389.12
5-Star Price
$652.60
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
$315.36
Day Range
$314.07316.16
52-Week Range
$280.89347.37
Bid/Ask
$314.12 / $315.63
Market Cap
$62.53 Bil
Volume/Avg
558,590 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
21.82
Price/Sales
4.73
Dividend Yield (Trailing)
0.78%
Dividend Yield (Forward)
0.78%
Total Yield
4.98%

Company Profile

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

Competitors

Valuation

Metric
AON
TRV
WTW
Price/Earnings (Normalized)
21.8225.1320.44
Price/Book Value
1.982.96
Price/Sales
4.731.223.08
Price/Cash Flow
21.274.8517.00
Price/Earnings
AON
TRV
WTW

Financial Strength

Metric
AON
TRV
WTW
Quick Ratio
0.200.32
Current Ratio
1.001.05
Interest Coverage
7.489.976.65
Quick Ratio
AON
TRV
WTW

Profitability

Metric
AON
TRV
WTW
Return on Assets (Normalized)
8.52%2.55%4.80%
Return on Equity (Normalized)
13.79%14.75%
Return on Invested Capital (Normalized)
27.84%11.35%10.47%
Return on Assets
AON
TRV
WTW
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Insurance Brokers Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MMC
Marsh & McLennan Companies IncMhgsn$100.1 Bil
AJG
Arthur J. Gallagher & CoBnq$53.1 Bil
WTW
Willis Towers Watson PLCYxyhzdq$28.5 Bil
BRO
Brown & Brown IncVywt$24.0 Bil
ERIE
Erie Indemnity Co Class ARzxz$18.3 Bil
CRVL
CorVel CorpMkklw$4.3 Bil
SFGLF
Steadfast Group LtdTbmwhnx$4.3 Bil
BRP
BRP Group Inc Class AXjbngpc$1.7 Bil
CRD.A
Crawford & Co Class AGjxth$609.1 Mil

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