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AON

NEUTRAL
$338.69 Live
Aon plc · NYSE
Target $394.84 (+16.6%)
$323.73 52W Range $412.97

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AI Analysis

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Confidence
72%
AON's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive assessment of bankruptcy risk. The company trades at a premium valuation with a P/E of 26.88 versus sector average of 21.49, yet demonstrates robust profitability (ROE: 37.69%, Operating Margin: 20.36%) and strong earnings growth (YoY: +34.4%). However, weak technical trend (0/100), bearish insider activity, and declining short-term EPS momentum (-20.7% Q/Q) offset these strengths. The stock is trading well above the conservative Graham Number of $102.27 but below the growth-based intrinsic value of $371.7, suggesting the market prices in continued growth.

Key Strengths

Exceptional return on equity (37.69%) indicating efficient use of shareholder capital
Strong year-over-year earnings growth (34.4%) and revenue growth (7.4%)
Low dividend payout ratio (22.72%) providing sustainability and room for future increases
High operating and gross margins relative to peers, signaling pricing power and cost control
Analyst consensus recommendation is 'buy' with a target price of $394.84, implying 16.6% upside

Key Risks

Piotroski F-Score of 4 suggests below-average financial strength and limited margin of safety
Very high debt/equity ratio (2.15), above sector average (1.96), increasing financial risk
Extremely low quick ratio (0.22) indicating potential liquidity concerns in the short term
Bearish insider sentiment with net selling of $3.03M and zero buy transactions in 6 months
Technical trend score of 0/100 signals strong near-term bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$371.7
+9.7% above current price

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