Aon (AON) AI Stock Analysis

• Market Cap: $73.98B
• Dividend Yield: 0.85%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.31
• Revenue Growth: 14.06%
• EPS Growth: 5.52%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 3.05
• Shares Outstanding: 214,935,270
• 10 Day Avg. Volume: 1,458,309
• 30 Day Avg. Volume: 1,204,531
• 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: 1.27
• Enterprise Value/Revenue: 5.51
• Enterprise Value/Gross Profit: 12.62
• Enterprise Value/Ebitda: 18.04
• 1Y Price Target: $403.15
• Price Target Upside: 17.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 16.95
• Revenue Forecast (FY): $17.27B

• Rating: 66 Neutral
• Price Target: $368.00 ▲(7.70% Upside)

Aon's overall stock score reflects strong earnings performance and strategic growth initiatives, which are offset by high leverage and bearish technical indicators. The company's valuation suggests potential overvaluation, but its strategic focus and robust revenue growth provide a positive outlook.

Positive Factors

Revenue Growth

Consistent organic revenue growth indicates strong demand for Aon's services, enhancing its market position and long-term financial stability.

Strategic Initiatives

Focus on data center insurance aligns with industry trends, positioning Aon for substantial growth and competitive advantage in a burgeoning market.

Capital Flexibility

Increased capital flexibility allows Aon to invest in growth opportunities, ensuring long-term sustainability and competitive positioning.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Aon's ability to invest in growth or weather economic downturns.

Margin Pressure

Margin compression may affect profitability if cost pressures persist, challenging Aon's ability to maintain its current financial performance.

Interest Rate Impact

Decreased investment income due to interest rate changes can reduce profitability, affecting Aon's financial results and strategic flexibility.

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's financial performance is solid with consistent revenue growth and strong profitability. However, the balance sheet shows high leverage, and there is room for improvement in operating cash flow. The company is managing its debt levels and maintaining robust cash generation.

Income Statement

Aon's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 1.65%. The gross profit margin has slightly decreased to 43.67% in the TTM, indicating some pressure on cost management. The net profit margin is healthy at 16.03%, although it has decreased from previous years. EBIT and EBITDA margins remain strong, reflecting efficient operations. Overall, the income statement reflects solid growth and profitability, albeit with some margin compression.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.22 in the TTM, indicating significant leverage. However, this is an improvement from previous years, showing efforts to manage debt levels. The return on equity is robust at 37.61%, suggesting effective use of equity to generate profits. The equity ratio is not directly provided, but the high leverage poses a risk if not managed carefully. Overall, the balance sheet shows improvement but remains leveraged.

Cash Flow

Aon's cash flow statement indicates a positive trend in free cash flow growth, with a TTM growth rate of 4.40%. The operating cash flow to net income ratio is relatively low at 0.13, suggesting potential constraints in cash generation relative to net income. The free cash flow to net income ratio is strong at 0.93, indicating efficient cash conversion. Overall, the cash flow statement shows healthy cash generation with some areas for improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.03B	15.70B	13.38B	12.48B	12.19B	11.07B
Gross Profit	7.44B	7.42B	6.47B	6.00B	5.46B	5.16B
EBITDA	5.20B	4.94B	3.91B	3.83B	2.58B	3.21B
Net Income	2.73B	2.65B	2.56B	2.59B	1.25B	1.97B
Balance Sheet
Total Assets	51.64B	48.97B	33.96B	32.70B	31.93B	32.11B
Cash, Cash Equivalents and Short-Term Investments	1.30B	11.62B	1.15B	1.14B	836.00M	1.19B
Total Debt	17.63B	17.89B	12.03B	11.68B	10.42B	8.93B
Total Liabilities	43.54B	42.53B	34.70B	33.13B	30.77B	28.52B
Stockholders Equity	7.94B	6.12B	-826.00M	-529.00M	1.06B	3.50B
Cash Flow
Free Cash Flow	3.04B	2.82B	3.18B	3.02B	2.04B	2.64B
Operating Cash Flow	3.28B	3.04B	3.44B	3.22B	2.18B	2.78B
Investing Cash Flow	-939.00M	-2.83B	-188.00M	-449.00M	49.00M	-679.00M
Financing Cash Flow	-1.91B	796.00M	-2.87B	-1.79B	-1.92B	-1.77B

Aon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 341.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 341.7 is below the 20-day moving average (MA) of 343.22, below the 50-day MA of 354.40, and below the 200-day MA of 365.35, indicating a bearish trend. The MACD of -5.09 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.49 is Neutral, 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	71 Outperform	$26.97B	23.71	10.47%	0.78%	17.87%	-9.35%
MMC	71 Outperform	$88.43B	21.65	28.62%	1.92%	10.57%	2.57%
AJG	69 Neutral	$64.54B	40.09	9.05%	0.97%	17.17%	19.12%
WTW	69 Neutral	$30.91B	15.41	27.79%	1.13%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$73.98B	27.57	38.33%	0.85%	14.06%	5.52%
RYAN	64 Neutral	$14.52B	431.95	11.16%	0.93%	22.77%	-34.97%

Aon Corporate Events

Aon Plc’s Q3 2025 Stock Buyback Surge: Balancing Shareholder Value and Financial Flexibility

Aon Plc’s aggressive repurchase of equity securities during the third quarter of 2025, totaling 690,593 shares at an average price of $362.00, highlights a significant allocation of resources towards stock buybacks. This strategy, while potentially boosting shareholder value, poses a risk of depleting cash reserves that could otherwise be used for strategic investments or to buffer against economic downturns. The continuation of this repurchase program, which has expanded significantly since its inception in 2012, may also signal a lack of lucrative investment opportunities, potentially impacting Aon’s long-term growth prospects. Stakeholders should closely monitor the implications of these buybacks on the company’s financial flexibility and overall market position.

Aon Plc’s Aggressive Stock Buyback Strategy in Q3 2025: Potential Risks and Implications

Aon Plc’s ongoing repurchase of equity securities during the third quarter of 2025 presents a potential financial risk, as the company invested significantly in buybacks with a total of 690,593 shares purchased at an average price of $362.00 per share. This aggressive repurchase strategy, part of a long-standing program with $27.5 billion in authorized repurchases, could strain Aon’s financial resources and impact its liquidity, especially if market conditions fluctuate unfavorably. While buybacks can enhance shareholder value by reducing the number of shares outstanding, they also limit the company’s ability to allocate capital towards other strategic investments or to cushion against economic downturns. Therefore, stakeholders should closely monitor Aon’s financial health and market conditions to assess the sustainability of its repurchase program.

Aon Completes Sale of Wealth Businesses

On October 30, 2025, Aon plc completed the sale of a significant majority of its wealth businesses, including Wealthspire Advisors, Fiducient Advisors, and Newport Private Wealth, to Madison Dearborn Partners. This transaction marks a strategic shift in Aon’s operations, potentially impacting its market positioning and stakeholder relationships by narrowing its focus on core service areas.

The most recent analyst rating on (AON) stock is a Sell with a $412.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.

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.

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.

The most recent analyst rating on (AON) stock is a Buy with a $425.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.