Aon (AON) AI Stock Analysis

• Market Cap: $76.28B
• Dividend Yield: 0.81%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.36
• Revenue Growth: 18.42%
• EPS Growth: -4.44%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 3.49
• Shares Outstanding: 215,626,600
• 10 Day Avg. Volume: 1,531,108
• 30 Day Avg. Volume: 1,223,709
• PEG Ratio: -72.09
• Price to Book (P/B): 12.40
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 26.95
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 5.64
• Enterprise Value/Gross Profit: 12.01
• Enterprise Value/Ebitda: 18.63
• 1Y Price Target: $417.56
• Price Target Upside: 18.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $409.00 ▲(16.31% Upside)

Aon's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust growth and strategic initiatives. However, high leverage on the balance sheet and a relatively high P/E ratio present potential risks. Technical indicators suggest a neutral trend, while the modest dividend yield offers limited income potential.

Positive Factors

Revenue Growth

Consistent revenue growth and EPS improvements indicate strong market demand and effective business strategies, supporting long-term expansion.

Aon United Strategy

The Aon United strategy fosters innovation and strengthens client relationships, enhancing competitive positioning and market share.

Cash Flow Generation

Strong cash flow generation supports financial stability and provides resources for strategic investments and debt management.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Reinsurance Segment Challenges

Declining reinsurance rates could pressure margins and profitability in this segment, affecting overall financial performance.

Economic Uncertainty

Economic uncertainties and global trends create a complex environment, potentially impacting client demand and operational stability.

Aon Business Overview & Revenue Model

Company Description

Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captives management; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advice, restructuring, and mergers and acquisitions services; and corporate finance advisory services and capital markets solutions products. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; advice services on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions; and advice and solutions that help clients in risk, health, and wealth through commercial risk, reinsurance, health, and wealth solutions. Further, the company offers CoverWallet; Affinity; Aon Inpoint; CoverWallet; and ReView services. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Aon generates revenue primarily through fees and commissions for its consulting and brokerage services. In its Aon Risk Solutions segment, the company earns commissions from insurance carriers for placing coverage on behalf of clients, along with consulting fees for risk management services. The Aon Solutions segment contributes revenue through advisory fees for consulting services related to employee benefits, retirement planning, and health management. Additionally, Aon utilizes technology-driven platforms and analytics to enhance service delivery and create value for clients, which helps in retaining existing clients and attracting new ones. Significant partnerships with leading insurance companies and technology firms also bolster Aon's ability to provide comprehensive solutions and expand its market reach, contributing to its overall earnings.

Aon Financial Statement Overview

Summary

Aon demonstrates strong financial health with impressive profitability and growth metrics. The income statement highlights robust growth and efficiency, while the balance sheet shows high leverage, posing some risk. Cash flow generation remains strong, supporting financial stability. Overall, Aon is in a solid financial position, but attention to leverage is advised to mitigate potential risks.

Income Statement

Aon has demonstrated strong revenue growth, with a TTM revenue increase of 6.7% from the previous year. The gross profit margin stands at a robust 47.0%, and the net profit margin is 15.5%, indicating solid profitability. EBIT margin of 24.1% and EBITDA margin of 28.5% reflect efficient operations. The overall growth and profitability metrics are impressive, indicating a well-managed income statement.

Balance Sheet

Aon's balance sheet shows a high debt-to-equity ratio of 2.29, indicating significant leverage. However, the company has improved its equity position with a positive stockholders' equity of $7.84 billion in the latest TTM data. The equity ratio is relatively low at 14.5%, suggesting potential risks associated with high leverage. Despite this, the return on equity is strong at 33.2%, showcasing effective use of equity to generate profits.

Cash Flow

Aon's cash flow is solid, with a free cash flow growth rate of 3.4% in TTM. The operating cash flow to net income ratio is 1.21, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio of 1.12 further underscores the company's capacity to generate cash. Overall, cash flow performance is strong, though slightly affected by substantial financing outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.75B	15.70B	13.38B	12.48B	12.19B	11.07B
Gross Profit	7.87B	7.42B	6.47B	6.00B	5.46B	5.16B
EBITDA	5.08B	4.94B	3.91B	3.83B	2.58B	3.21B
Net Income	2.60B	2.65B	2.56B	2.59B	1.25B	1.97B
Balance Sheet
Total Assets	54.01B	48.97B	33.96B	32.70B	31.93B	32.11B
Cash, Cash Equivalents and Short-Term Investments	9.70B	11.62B	1.15B	1.14B	836.00M	1.19B
Total Debt	18.18B	17.89B	12.03B	11.68B	10.42B	8.93B
Total Liabilities	45.92B	42.53B	34.70B	33.13B	30.77B	28.52B
Stockholders Equity	7.84B	6.12B	-826.00M	-529.00M	1.06B	3.50B
Cash Flow
Free Cash Flow	2.91B	2.82B	3.18B	3.02B	2.04B	2.64B
Operating Cash Flow	3.15B	3.04B	3.44B	3.22B	2.18B	2.78B
Investing Cash Flow	-816.00M	-2.83B	-188.00M	-449.00M	49.00M	-679.00M
Financing Cash Flow	-1.84B	796.00M	-2.87B	-1.79B	-1.92B	-1.77B

Aon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 351.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AON, the sentiment is Negative. The current price of 351.64 is below the 20-day moving average (MA) of 363.04, below the 50-day MA of 363.34, and below the 200-day MA of 367.33, indicating a bearish trend. The MACD of -3.88 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AON.

Aon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRO	76 Outperform	30.75B	26.88	15.43%	0.65%	11.68%	-0.17%
AON	75 Outperform	$76.28B	29.62	37.99%	0.81%	18.42%	-4.44%
AJG	75 Outperform	78.09B	45.91	7.13%	0.84%	15.03%	28.86%
RYAN	68 Neutral	14.57B	2,401.74	9.13%	0.86%	22.21%	-30.67%
MMC	67 Neutral	98.16B	23.97	26.17%	1.69%	9.22%	3.05%
WTW	65 Neutral	33.51B	240.06	1.69%	1.06%	1.27%	-84.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Aon Corporate Events

Aon Sells Wealth Businesses to Madison Dearborn Partners

On September 3, 2025, Aon plc announced a definitive agreement to sell a significant majority of its wealth businesses, including Wealthspire Advisors and Fiducient Advisors, to Madison Dearborn Partners for approximately $2.7 billion. This transaction, expected to close in late Q4 2025, aligns with Aon’s strategy to focus on core risk capital and human capital capabilities, enhancing its capital position and flexibility for growth investments, while MDP aims to support the acquired businesses’ growth and client service.

The most recent analyst rating on (AON) stock is a Hold with a $402.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.