AON - Aon plc | StockAlert.pro

Stock Details

Aon plc (AON), a prominent company in the finance sector within the insurance agents, brokers & service industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $359.75. Over the past 52 weeks, it has ranged between $293.49 and $412.10. This places the current price at 87.3% of its 52-week high and 22.6% above its 52-week low. Recent trading volume was recorded at 119,495. The International Securities Identification Number (ISIN) for this stock is US0371331015.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

30.83

Above market average

Forward P/E

20.37

Earnings expected to grow

PEG Ratio

1.71

Reasonably valued

Price to Book

10.88

EV/EBITDA

17.23

EPS (TTM)

$11.57

Price to Sales

4.71

Beta

0.86

Less volatile than market

How is AON valued relative to its earnings and growth?

Aon plc trades at a P/E ratio of 30.83, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 20.37 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.71 indicates reasonable value when growth is considered.

What is AON's risk profile compared to the market?

With a beta of 0.86, Aon plc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 10.88 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

15.60%

Operating Margin

33.70%

Return on Equity

72.00%

Return on Assets

6.03%

Revenue Growth (YoY)

16.20%

Earnings Growth (YoY)

-17.20%

How profitable and efficient is AON's business model?

Aon plc achieves a profit margin of 15.60%, meaning it retains $15.60 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 72.00% and ROA at 6.03%, the company generates strong returns on invested capital.

What are AON's recent growth trends?

Aon plc's revenue grew by 16.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 17.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INSURANCE AGENTS, BROKERS & SERVICE industry averages for proper context.

Dividend Information

Dividend Per Share

$2.77

Dividend Yield

0.84%

Ex-Dividend Date

5/1/2025

Dividend Date

5/15/2025

What dividend income can investors expect from AON?

Aon plc offers a dividend yield of 0.84%, paying $2.77 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/1/2025.

How reliable is AON's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Aon plc pays $2.77 per share in dividends against earnings of $11.57 per share, resulting in a payout ratio of 23.94%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 5/15/2025.

Company Size & Market

Market Cap

$77.04B

Shares Outstanding

215.94M

Book Value/Share

$32.41

Asset Type

Common Stock

What is AON's market capitalization and position?

Aon plc has a market capitalization of $77.04B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 215.94M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INSURANCE AGENTS, BROKERS & SERVICE industry, it competes with other firms in this sector.

How does AON's price compare to its book value?

Aon plc's book value per share is $32.41, while the current stock price is $359.75, resulting in a price-to-book (P/B) ratio of 11.10. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$396.07

10.10% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for AON?

20 analysts cover AON with 50% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $396.07 implies 10.1% upside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on AON?

Current analyst recommendations:6 Strong Buy, 4 Buy, 8 Hold, 02 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 03:06 AM

Aon plc (AON) Stock