Aon (AON) AI Stock Analysis

• Market Cap: $80.20B
• Dividend Yield: 0.76%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.36
• Revenue Growth: 18.42%
• EPS Growth: -4.44%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Brokers
• EPS (TTM): 3.49
• Shares Outstanding: 215,626,600
• 10 Day Avg. Volume: 1,077,172
• 30 Day Avg. Volume: 1,373,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.64
• Enterprise Value/Gross Profit: 12.01
• Enterprise Value/Ebitda: 18.63
• 1Y Price Target: $416.93
• Price Target Upside: 11.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 78 Outperform
• Price Target: $424.00 ▲(13.52% Upside)

Aon's overall stock score of 78 reflects strong financial performance and strategic initiatives that support long-term growth. The company's robust earnings call and positive corporate events further bolster confidence. However, high leverage and premium valuation present potential risks. Investors should monitor these factors while considering Aon's growth potential and strategic execution.

Positive Factors

Earnings

AON's better-than-expected results led to an increase in target price, reflecting more consistent net-new business growth and increased organic growth estimates.

Financial Performance

Strong organic revenue growth for the quarter indicates considerable progress of the Aon United Strategy.

Market Position

AON is expected to be the largest beneficiary from a rebound in M&A/IPO activity due to its leading market share in lines that would benefit from increased activity.

Negative Factors

Macroeconomic Risks

Management acknowledges macroeconomic uncertainties, which could affect future performance.

Valuation Concerns

There is concern that the current valuation may overly reflect the earnings per share growth outlook, suggesting potential risk of stock underperformance.

Aon Business Overview & Revenue Model

Company Description

Aon plc is a leading global professional services firm that provides a broad range of risk, retirement, and health solutions. Operating in over 120 countries, Aon serves clients through its two main segments: Aon Risk Solutions, which focuses on risk management and insurance brokerage services, and Aon Solutions, which provides consulting services in areas such as human capital, retirement, and health benefits. The firm leverages data analytics and technology to deliver innovative solutions tailored to the needs of its diverse client base, including corporations, public sector entities, and non-profit organizations.

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 exhibits strong financial health with impressive profitability and growth metrics. The income statement highlights robust growth and efficiency, though the balance sheet reveals high leverage, posing some risk. Cash flow generation remains strong, supporting the company's financial stability. Overall, Aon is in a solid financial position, but attention to leverage is advised.

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: Positive
• Last Price: 373.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AON, the sentiment is Positive. The current price of 373.49 is above the 20-day moving average (MA) of 369.58, above the 50-day MA of 361.50, and above the 200-day MA of 368.94, indicating a bullish trend. The MACD of 2.88 indicates Positive momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AON.

Aon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AON	78 Outperform	$80.20B	31.14	37.99%	0.76%	18.42%	-4.44%
BRO	76 Outperform	$31.48B	27.52	11.27%	0.63%	11.68%	-0.17%
AJG	75 Outperform	$77.58B	45.61	9.49%	0.85%	15.03%	28.86%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
MMC	67 Neutral	$101.00B	24.66	28.33%	1.63%	9.22%	3.05%
RYAN	66 Neutral	$14.62B	2,410.00	9.44%	0.86%	22.21%	-30.67%
WTW	65 Neutral	$31.75B	227.45	1.57%	1.09%	1.27%	-84.75%

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.

Aon Expands Board with New Director Appointment

On August 1, 2025, Aon plc expanded its Board of Directors to thirteen members, appointing Jo Ann Jenkins as a director effective August 15, 2025. Jenkins, who previously served as CEO of AARP, will join the Audit Committee and is considered independent by NYSE standards. Her appointment is expected to strengthen Aon’s governance and oversight capabilities, potentially impacting its strategic direction and stakeholder confidence.

Aon Appoints David DeBrunner as New Global Controller

On July 29, 2025, Aon plc announced the appointment of David DeBrunner as Senior Vice President, Global Controller, and Chief Accounting Officer, effective September 15, 2025. This strategic move follows DeBrunner’s extensive experience at Ally Financial Inc. and Fifth Third Bancorp. His compensation package includes a base salary of $500,000, a target annual incentive award, and a sign-on bonus of up to $2.1 million. DeBrunner will replace Michael Neller, who will transition to a new role within the company. This leadership change is expected to strengthen Aon’s financial management and align with its strategic goals.

Aon Extends CEO’s International Assignment by One Year

On June 27, 2025, Aon Corporation extended the international assignment of Gregory C. Case by one year, now set to expire on June 30, 2026. Additionally, during its 2025 Annual General Meeting, Aon shareholders approved an amendment to the Aon plc 2011 Incentive Plan, increasing the shares available for issuance and setting a minimum vesting period for equity awards. The meeting also saw the election of 12 directors and approval of various resolutions, including executive compensation and the re-appointment of Ernst & Young as auditors.