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Aon PLC Class A AON

Morningstar Rating
$323.00 +24.05 (8.04%)
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Company Report

Aon Earnings: Growth Is Back on Track

Aon’s second-quarter results show the company getting back on track following a weak first quarter. Year-over-year organic revenue growth was 6%, in line with what we’ve seen from peers. This supports our view that the previous quarter was a temporary blip based on mix. However, growth is a bit above our long-term expectations, and we do expect growth to moderate over time. We will maintain our $301 fair value estimate for the narrow-moat company and see shares as about fairly valued at the moment.

Price vs Fair Value

AON is trading within a range we consider fairly valued.
Price
$323.00
Fair Value
$345.00
Uncertainty
Medium
1-Star Price
$139.79
5-Star Price
$115.60
Economic Moat
Fnlyxx
Capital Allocation
Vjpktmbqk

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
$298.95
Day Range
$304.12323.45
52-Week Range
$268.06344.68
Bid/Ask
$322.00 / $338.85
Market Cap
$70.23 Bil
Volume/Avg
3.1 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
22.08
Price/Sales
4.68
Dividend Yield (Trailing)
0.78%
Dividend Yield (Forward)
0.84%
Total Yield
3.68%

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)
22.0818.2413.23
Price/Book Value
11.983.081.96
Price/Sales
4.683.051.12
Price/Cash Flow
24.2917.204.44
Price/Earnings
AON
WTW
TRV

Financial Strength

Metric
AON
WTW
TRV
Quick Ratio
0.480.31
Current Ratio
1.311.11
Interest Coverage
7.186.1312.52
Quick Ratio
AON
WTW
TRV

Profitability

Metric
AON
WTW
TRV
Return on Assets (Normalized)
8.31%5.56%3.02%
Return on Equity (Normalized)
16.98%16.15%
Return on Invested Capital (Normalized)
25.74%11.63%13.04%
Return on Assets
AON
WTW
TRV
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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