(AON) Aon - Overview
Sector: Financial Services | Industry: Insurance Brokers | Exchange: NYSE (USA) | Market Cap: 69.126m USD | Total Return: -7.8% in 12m
Industry Rotation: +10.1
Avg Turnover: 465M
EPS Trend: 73.6%
Qual. Beats: 0
Rev. Trend: 98.4%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Aon plc is a global professional services firm headquartered in Dublin, Ireland, specializing in risk, health, and wealth solutions. The company operates through two primary segments: Risk Capital, which focuses on commercial risk and reinsurance, and Human Capital, which manages health benefits and retirement consulting. Its service portfolio includes insurance brokerage, investment advisory, actuarial services, and capital market solutions for corporate and institutional clients.
The insurance brokerage industry functions as an intermediary, earning commission and fee-based revenue without carrying the underlying underwriting risk associated with insurance policies. Aon utilizes a capital-light business model that emphasizes long-term consulting relationships and data-driven risk assessment across diverse geographic markets. For deeper insights into these operational trends, interested investors can review the comprehensive data on ValueRay.
- Organic revenue growth depends on global commercial insurance premium rate cycles
- Strategic acquisition of NFP expands middle-market presence and drives synergy potential
- Rising interest rates increase fiduciary investment income on client funds held
- Expansion of Human Capital consulting services improves high-margin recurring revenue streams
- Global regulatory pressure on brokerage commissions threatens long-term professional services margins
| Net Income: 3.94b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 1.55 > 1.0 |
| NWC/Revenue: 9.30% < 20% (prev 6.61%; Δ 2.69% < -1%) |
| CFO/TA 0.07 > 3% & CFO 3.77b > Net Income 3.94b |
| Net Debt (14.69b) to EBITDA (6.77b): 2.17 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (215.4m) vs 12m ago -1.15% < -2% |
| Gross Margin: 65.99% > 18% (prev 0.47%; Δ 6.55k% > 0.5%) |
| Asset Turnover: 34.38% > 50% (prev 32.52%; Δ 1.86% > 0%) |
| Interest Coverage Ratio: 7.42 > 6 (EBITDA TTM 6.77b / Interest Expense TTM 788.0m) |
| A: 0.03 (Total Current Assets 26.16b - Total Current Liabilities 24.54b) / Total Assets 51.43b |
| B: 0.01 (Retained Earnings 307.0m / Total Assets 51.43b) |
| C: 0.12 (EBIT TTM 5.85b / Avg Total Assets 50.87b) |
| D: -0.09 (Book Value of Equity -3.62b / Total Liabilities 41.47b) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 0.31 (Receivables 5.09b/15.38b, Revenue 17.49b/16.36b) |
| GMI: 0.71 (GM 65.99% / 47.12%) |
| AQI: 0.95 (AQ_t 0.46 / AQ_t-1 0.49) |
| SGI: 1.07 (Revenue 17.49b / 16.36b) |
| TATA: 0.00 (NI 3.94b - CFO 3.77b) / TA 51.43b) |
| Beneish M = -3.83 (Cap -4..+1) = AAA |
Over the past week, the price has changed by +2.38%, over one month by -0.37%, over three months by +3.28% and over the past year by -7.77%.
- StrongBuy: 4
- Buy: 5
- Hold: 9
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 387.3 | 19.3% |
P/E Forward = 16.4204
P/S = 3.9532
P/B = 6.7932
P/EG = 2.4865
Revenue TTM = 17.49b USD
EBIT TTM = 5.85b USD
EBITDA TTM = 6.77b USD
Long Term Debt = 13.54b USD (from longTermDebt, last quarter)
Short Term Debt = 1.12b USD (from shortTermDebt, last quarter)
Debt = 16.11b USD (from shortLongTermDebtTotal, last quarter) + Leases 811.0m
Net Debt = 14.69b USD (calculated: Debt 16.11b - CCE 1.42b)
Enterprise Value = 83.82b USD (69.13b + Debt 16.11b - CCE 1.42b)
Interest Coverage Ratio = 7.42 (Ebit TTM 5.85b / Interest Expense TTM 788.0m)
EV/FCF = 23.97x (Enterprise Value 83.82b / FCF TTM 3.50b)
FCF Yield = 4.17% (FCF TTM 3.50b / Enterprise Value 83.82b)
FCF Margin = 20.00% (FCF TTM 3.50b / Revenue TTM 17.49b)
Net Margin = 22.54% (Net Income TTM 3.94b / Revenue TTM 17.49b)
Gross Margin = 65.99% ((Revenue TTM 17.49b - Cost of Revenue TTM 5.95b) / Revenue TTM)
Gross Margin QoQ = 87.66% (prev 83.56%)
Tobins Q-Ratio = 1.63 (Enterprise Value 83.82b / Total Assets 51.43b)
Interest Expense / Debt = 1.11% (Interest Expense 179.0m / Debt 16.11b)
Taxrate = 20.22% (314.0m / 1.55b)
NOPAT = 4.67b (EBIT 5.85b * (1 - 20.22%))
Current Ratio = 1.07 (Total Current Assets 26.16b / Total Current Liabilities 24.54b)
Debt / Equity = 1.64 (Debt 16.11b / totalStockholderEquity, last quarter 9.83b)
Debt / EBITDA = 2.17 (Net Debt 14.69b / EBITDA 6.77b)
Debt / FCF = 4.20 (Net Debt 14.69b / FCF TTM 3.50b)
Total Stockholder Equity = 8.74b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.75% (Net Income 3.94b / Total Assets 51.43b)
RoE = 45.09% (Net Income TTM 3.94b / Total Stockholder Equity 8.74b)
RoCE = 26.25% (EBIT 5.85b / Capital Employed (Equity 8.74b + L.T.Debt 13.54b))
RoIC = 17.55% (NOPAT 4.67b / Invested Capital 26.60b)
WACC = 5.32% (E(69.13b)/V(85.23b) * Re(6.35%) + D(16.11b)/V(85.23b) * Rd(1.11%) * (1-Tc(0.20)))
Discount Rate = 6.35% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 2.22 | Cagr: 2.90%
[DCF] Terminal Value 86.56% ; FCFF base≈3.15b ; Y1≈3.22b ; Y5≈3.58b
[DCF] Fair Price = 427.5 (EV 105.99b - Net Debt 14.69b = Equity 91.30b / Shares 213.6m; r=6.0% [WACC]; 5y FCF grow 2.08% → 3.0% )
EPS Correlation: 73.60 | EPS CAGR: 8.85% | SUE: 0.11 | # QB: 0
Revenue Correlation: 98.43 | Revenue CAGR: 13.43% | SUE: 0.94 | # QB: 1
EPS current Quarter (2026-06-30): EPS=3.82 | Chg30d=+0.01% | Revisions=-16% | Analysts=21
EPS next Quarter (2026-09-30): EPS=3.41 | Chg30d=+0.28% | Revisions=-12% | Analysts=21
EPS current Year (2026-12-31): EPS=19.11 | Chg30d=+0.68% | Revisions=+64% | GrowthEPS=+11.9% | GrowthRev=+5.0%
EPS next Year (2027-12-31): EPS=21.41 | Chg30d=+0.16% | Revisions=+33% | GrowthEPS=+12.0% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: +64%