Aon has historically demonstrated modest growth and strong, stable free cash flow, and we expect much of the same going forward, though 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
|
TRV
|
MRSH
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.55 | 9.97 | 18.25 |
Price/Book Value | 7.98 | 2.37 | 6.03 |
Price/Sales | 4.55 | 1.66 | 3.26 |
Price/Cash Flow | 20.47 | 4.97 | 15.86 |
|
Metric
|
AON
|
TRV
|
MRSH
|
|---|---|---|---|
Quick Ratio | 0.70 | — | 0.48 |
Current Ratio | 1.07 | — | 1.11 |
Interest Coverage | 7.39 | 23.66 | 6.50 |
|
Metric
|
AON
|
TRV
|
MRSH
|
|---|---|---|---|
Return on Assets (Normalized) | 7.49% | 5.83% | 7.47% |
Return on Equity (Normalized) | 46.04% | 26.09% | 29.17% |
Return on Invested Capital (Normalized) | 17.33% | 21.25% | 13.64% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Marsh
MRSH
| LOCK|WF$m<?Y | LOCK|lDfpd | $88B | |||
| Arthur J. Gallagher & Co
AJG
| LOCK|jwffQwD | LOCK|z#Q! | $65B | |||
| Willis Towers Watson PLC
WTW
| LOCK|LwC#rl^ | LOCK|Ld>g | $28B | |||
| Brown & Brown Inc
BRO
| — | LOCK|?Dbq | $24B | |||
| Erie Indemnity Co Class A
ERIE
| — | LOCK|>%&! | $12B | |||
| Neptune Insurance Holdings Inc Ordinary Shares- Class A
NP
| — | LOCK|dJ?P$ | $4B | |||
| Steadfast Group Ltd
SFGLF
| — | LOCK|XypC | $4B | |||
| CorVel Corp
CRVL
| — | LOCK|$qbF | $3B | |||
| Accelerant Holdings Ordinary Shares - Class A
ARX
| — | LOCK|K^ | $3B |
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United States