AON Aon plc - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Aon trades at a substantial valuation premium to financial services peers like TRV (P/E 11.31) and USB (P/E 10.78), reflecting its superior growth and profitability, but leaves limited margin of safety.
- Forward P/E of 20.13 is more reasonable than current 28.01, suggesting earnings acceleration is priced in
- Price/Sales of 4.43 is high but justified by industry-leading margins and ROE
- Current P/E of 28.01 is significantly above sector average of 20.60, increasing downside risk
- Price/Book of 9.49 is extremely high, indicating rich valuation relative to book value
Despite a -6.4% 1Y return and recent price weakness, Aon’s strong earnings trajectory and positive analyst sentiment suggest inflection potential, especially as forward multiples de-risk the valuation.
- 34.4% YoY earnings growth and 7.4% revenue growth outpace most peers
- Analyst target implies 15% upside, with strong consensus buy rating
- Q/Q EPS down -20.7%, indicating near-term volatility
- Forward P/E compression risk if growth slows
Aon has demonstrated strong historical profitability and margin discipline, with a 5Y return of +74.7%, but recent quarters show increased earnings volatility and short-term underperformance.
- Consistent profitability with 15.96% net margin and 20.36% operating margin over time
- Long-term earnings beat rate of ~60% with frequent positive surprises (e.g., +24.1% in Q3 2021)
- Earnings misses in 3 of last 4 quarters, including -6.1% surprise in Q1 2025
- 1Y price return of -6.4% underperforms sector momentum
Aon’s financial health is a mixed bag: strong returns on capital are offset by aggressive leverage and weak short-term liquidity compared to peers like TRV (Debt/Equity 0.29).
- High ROA of 5.59% despite leverage, indicating efficient asset use
- No cash burn concerns; strong operating cash flow implied by consistent profitability
- Debt/Equity of 2.15 is high vs sector avg of 0.72, raising refinancing and interest rate risk
- Quick ratio of 0.22 signals tight liquidity, potentially constraining operational flexibility
While Aon’s dividend yield is modest at 0.85%, the low payout ratio and strong earnings coverage make it a sustainable and flexible component of capital allocation.
- Low payout ratio of 22.72% ensures high sustainability and room for growth
- Dividend yield of 0.85% may be modest but is well-covered by earnings
- Yield is below peer average, limiting appeal to income investors
- No 5-year yield history available, making trend assessment difficult
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AON and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AON
Aon plc
Primary
|
+74.7% | +22.6% | -6.4% | -3.0% | -1.6% | +1.1% |
|
APO
Apollo Global Management, Inc.
Peer
|
+224.9% | +113.5% | -19.5% | -8.9% | +2.3% | -1.3% |
|
USB
U.S. Bancorp
Peer
|
+31.7% | +24.3% | -2.2% | +7.2% | +1.4% | -0.5% |
|
PNC
The PNC Financial Services Group, Inc.
Peer
|
+74.5% | +26.5% | -8.2% | +4.4% | +0.9% | -0.1% |
|
AJG
Arthur J. Gallagher & Co.
Peer
|
+132.4% | +41.5% | -11.6% | -24.1% | -12.7% | +3.4% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Financial Services Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AON
Aon plc
|
BULLISH | $75.43B | 28.01 | 37.7% | 16.0% | $350.13 | |
|
APO
Apollo Global Management, Inc.
|
BULLISH | $75.8B | 19.04 | 16.5% | 15.8% | $130.6 | |
|
USB
U.S. Bancorp
|
BULLISH | $73.54B | 10.78 | 11.7% | 27.6% | $47.1 | |
|
PNC
The PNC Financial Services...
|
BULLISH | $72.15B | 11.89 | 11.5% | 29.9% | $183.99 | |
|
AJG
Arthur J. Gallagher & Co.
|
NEUTRAL | $66.39B | 41.3 | 9.1% | 13.3% | $258.51 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-05 | ZEIDEL DARREN | General Counsel | Sale | 8,800 | $3,031,818 |
| 2025-09-26 | JENKINS JO ANN C. | Director | Stock Award | 547 | - |
| 2025-07-01 | REESE EDMUND | Chief Financial Officer | Stock Award | 3,975 | - |
| 2025-06-26 | FRANCIS CHERYL A | Director | Stock Award | 637 | - |
| 2025-06-26 | CAMPBELL JEFFREY C | Director | Stock Award | 637 | - |
| 2025-06-26 | SMITH SARAH G | Director | Stock Award | 637 | - |
| 2025-06-26 | SPRUELL BYRON | Director | Stock Award | 637 | - |
| 2025-06-26 | NOTEBAERT RICHARD C | Director | Stock Award | 637 | - |
| 2025-06-26 | SANTONA GLORIA | Director | Stock Award | 637 | - |
| 2025-06-26 | ALVAREZ JOSE ANTONIO | Director | Stock Award | 637 | - |
| 2025-06-26 | KARABOUTIS ADRIANA | Director | Stock Award | 637 | - |
| 2025-06-26 | STAVRIDIS JAMES G | Director | Stock Award | 637 | - |
| 2025-06-26 | CAI JIN-YONG | Director | Stock Award | 637 | - |
| 2025-06-26 | KNIGHT LESTER B III | Director | Stock Award | 1,273 | - |
| 2025-05-29 | NOTEBAERT RICHARD C | Director | Gift | 1,795 | - |
Wall Street Analysts
Professional analyst ratings and price targets