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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.23
AON's Cash to Debt is ranked lower than
63% of the 379 Companies
in the Global Insurance Brokers industry.

( Industry Median: 101.40 vs. AON: 0.23 )
AON' s 10-Year Cash to Debt Range
Min: 0.15   Max: No Debt
Current: 0.23

Equity to Asset 0.27
AON's Equity to Asset is ranked higher than
57% of the 369 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.37 vs. AON: 0.27 )
AON' s 10-Year Equity to Asset Range
Min: 0.11   Max: 0.29
Current: 0.27

0.11
0.29
Interest Coverage 7.96
AON's Interest Coverage is ranked higher than
61% of the 319 Companies
in the Global Insurance Brokers industry.

( Industry Median: 13.78 vs. AON: 7.96 )
AON' s 10-Year Interest Coverage Range
Min: 6.51   Max: 9999.99
Current: 7.96

6.51
9999.99
F-Score: 5
Z-Score: 1.49
M-Score: -2.63
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 14.14
AON's Operating margin (%) is ranked higher than
62% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.69 vs. AON: 14.14 )
AON' s 10-Year Operating margin (%) Range
Min: 10.47   Max: 15.68
Current: 14.14

10.47
15.68
Net-margin (%) 9.42
AON's Net-margin (%) is ranked higher than
62% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.99 vs. AON: 9.42 )
AON' s 10-Year Net-margin (%) Range
Min: 1.98   Max: 19.42
Current: 9.42

1.98
19.42
ROE (%) 13.66
AON's ROE (%) is ranked higher than
88% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 5.64 vs. AON: 13.66 )
AON' s 10-Year ROE (%) Range
Min: 4.24   Max: 27.53
Current: 13.66

4.24
27.53
ROA (%) 3.68
AON's ROA (%) is ranked higher than
83% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.58 vs. AON: 3.68 )
AON' s 10-Year ROA (%) Range
Min: 0.66   Max: 6.37
Current: 3.68

0.66
6.37
ROC (Joel Greenblatt) (%) 118.26
AON's ROC (Joel Greenblatt) (%) is ranked higher than
71% of the 380 Companies
in the Global Insurance Brokers industry.

( Industry Median: 103.16 vs. AON: 118.26 )
AON' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 72.66   Max: 223.94
Current: 118.26

72.66
223.94
Revenue Growth (%) 9.50
AON's Revenue Growth (%) is ranked higher than
85% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.60 vs. AON: 9.50 )
AON' s 10-Year Revenue Growth (%) Range
Min: -9.7   Max: 20.9
Current: 9.5

-9.7
20.9
EBITDA Growth (%) 13.40
AON's EBITDA Growth (%) is ranked higher than
87% of the 255 Companies
in the Global Insurance Brokers industry.

( Industry Median: -4.20 vs. AON: 13.40 )
AON' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 65.2
Current: 13.4

0
65.2
EPS Growth (%) 12.80
AON's EPS Growth (%) is ranked higher than
83% of the 253 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.70 vs. AON: 12.80 )
AON' s 10-Year EPS Growth (%) Range
Min: -36.5   Max: 25.6
Current: 12.8

-36.5
25.6
» AON's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

AON Guru Trades in Q2 2013

Mario Gabelli 7,000 sh (New)
Steven Cohen 188,604 sh (+1879.47%)
Joel Greenblatt 40,342 sh (+63.25%)
Bill Nygren 2,120,000 sh (+19.77%)
Meryl Witmer 15,742,331 sh (+7.08%)
Larry Robbins 2,794,477 sh (+6.85%)
Charles Brandes 127,198 sh (+6.57%)
Ruane Cunniff 426,650 sh (unchged)
Steven Romick 6,249,200 sh (unchged)
Charles de Vaulx 1,177,836 sh (unchged)
Pioneer Investments Sold Out
Jim Simons Sold Out
Chris Davis Sold Out
John Keeley Sold Out
First Pacific Advisors 6,887,700 sh (-0.05%)
Wallace Weitz 2,065,430 sh (-2.41%)
Jeremy Grantham 95,600 sh (-4.5%)
Mason Hawkins 18,901,702 sh (-5.88%)
NWQ Managers 4,290,313 sh (-8.51%)
Francisco Garcia Parames 269,567 sh (-23.88%)
» More
Q3 2013

AON Guru Trades in Q3 2013

Pioneer Investments 117,688 sh (New)
Charles Brandes 128,086 sh (+0.7%)
Ruane Cunniff 426,650 sh (unchged)
Charles de Vaulx 1,177,836 sh (unchged)
Steven Romick 6,249,200 sh (unchged)
First Pacific Advisors 6,849,900 sh (-0.55%)
Bill Nygren 2,100,000 sh (-0.94%)
Wallace Weitz 1,919,920 sh (-7.05%)
Mario Gabelli 6,300 sh (-10%)
Jeremy Grantham 85,400 sh (-10.67%)
Joel Greenblatt 33,516 sh (-16.92%)
NWQ Managers 3,550,977 sh (-17.23%)
Mason Hawkins 15,524,966 sh (-17.86%)
Larry Robbins 2,234,157 sh (-20.05%)
Francisco Garcia Parames 202,120 sh (-25.02%)
Steven Cohen 59,913 sh (-68.23%)
» More
Q4 2013

AON Guru Trades in Q4 2013

Robert Olstein 60,000 sh (New)
Paul Tudor Jones 2,822 sh (New)
Bill Nygren 2,500,000 sh (+19.05%)
Charles Brandes 131,019 sh (+2.29%)
Larry Robbins 500,000 sh (unchged)
Joel Greenblatt Sold Out
Jeremy Grantham 85,300 sh (-0.12%)
Pioneer Investments 112,888 sh (-4.08%)
NWQ Managers 3,357,590 sh (-5.45%)
First Pacific Advisors 6,342,200 sh (-7.41%)
Steven Romick 5,755,000 sh (-7.91%)
Larry Robbins 1,935,157 sh (-13.38%)
Charles de Vaulx 806,726 sh (-31.51%)
Steven Cohen 40,058 sh (-33.14%)
Mason Hawkins 10,339,122 sh (-33.4%)
Mario Gabelli 3,200 sh (-49.21%)
Wallace Weitz 918,520 sh (-52.16%)
Francisco Garcia Parames 94,413 sh (-53.29%)
Ruane Cunniff 134,700 sh (-68.43%)
» More
Q1 2014

AON Guru Trades in Q1 2014

Steven Romick 5,995,000 sh (+4.17%)
» More
» Details

Insider Trades

Latest Guru Trades with AON

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Wallace Weitz 2013-12-31 Reduce -52.16%2.82%$71.25 - $83.93 $ 82.144%918520
Mason Hawkins 2013-12-31 Reduce -33.4%1.94%$71.25 - $83.93 $ 82.144%10339122
Ruane Cunniff 2013-12-31 Reduce -68.43%0.13%$71.25 - $83.93 $ 82.144%134700
Joel Greenblatt 2013-12-31 Sold Out 0.08%$71.25 - $83.93 $ 82.144%0
Mario Gabelli 2013-12-31 Reduce -49.21%$71.25 - $83.93 $ 82.144%3200
Mason Hawkins 2013-09-30 Reduce -17.86%1.07%$64.61 - $76.02 $ 82.1420%15524966
Wallace Weitz 2013-09-30 Reduce -7.05%0.38%$64.61 - $76.02 $ 82.1420%1919920
Mason Hawkins 2013-06-30 Reduce -5.88%0.33%$59 - $66.44 $ 82.1430%18901702
Wallace Weitz 2013-06-30 Reduce -2.41%0.13%$59 - $66.44 $ 82.1430%2065430
John Keeley 2013-06-30 Sold Out 0.05%$59 - $66.44 $ 82.1430%0
Joel Greenblatt 2013-06-30 Add 63.25%0.04%$59 - $66.44 $ 82.1430%40342
Mario Gabelli 2013-06-30 New Buy$59 - $66.44 $ 82.1430%7000
Joel Greenblatt 2013-03-31 New Buy0.08%$54.9 - $61.82 $ 82.1440%24712
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Aon plc

Mason Hawkins Comments on Aon - Feb 17, 2014

For Aon (AON), the world's largest insurance broker and a leading benefits manager, increasing cash flow and healthy share repurchases helped our position gain 53% for the year. As noted in our third quarter commentary, higher interest rates should improve fiduciary income and help close thepensiongap.Aon'sprivatehealthcare exchange for corporate employees gained critical mass with the addition of Walgreens to the client base. CEO Greg Case and his management team have built value per share through their customer- focused, shareholder-oriented leadership.

From Mason Hawkins (Trades, Portfolio)' 2013 Longleaf Partners Fund management discussion.

Check out Mason Hawkins latest stock trades

Mason Hawkins' Longleaf Partners Comments on Aon - Oct 25, 2013

For the YTD, Aon (AON), the world's largest insurance broker and a leading benefits management firm, was among the Fund's largest contributors as the company's lower tax rate and increasing cash flow helped drive a 35% return. Higher interest rates will increase fiduciary income and help close the gap in the underfunded pension. Although nascent, Aon's healthcare exchange for corporate employees is gaining critical mass, most recently adding Walgreen Co in the third quarter. We applaud Greg Case and his team for their customer- focused, shareholder-oriented leadership.

From Mason Hawkins' Longleaf Partners Fund third quarter 2013 commentary.


Check out Mason Hawkins latest stock trades

Mason Hawkins Comments on AON - Aug 12, 2013

Aon (AON) also performed well in the quarter and first half, adding 5% and 16% respectively. As the world's largest insurance broker, the Risk Solutions group grows with global economic recovery as insurance pricing and risk coverage increase. In addition, fiduciary income should rise as interest rates move up. CEO Greg Case and his team continue to improve the Human Resources segment, which has been hampered by various issues including European weakness. By repurchasing $300 million in shares at discounts to our appraisal, management built value per share over the period.

From Mason Hawkins' semi-annual 2013 report.
Check out Mason Hawkins latest stock trades

Wallace Weitz Comments on Aon - Jul 15, 2013

Aon ($64)(AON) Aon is a growing insurance brokerage firm whose stock was depressed by its acquisition of HR consultant Hewitt. Aon would be a beneficiary of higher insurance rates and increasing global economic activity.

From Wallace Weitz’s second quarter 2013 letter to shareholders.


Check out Wallace Weitz latest stock trades

Bill Nygren Comments on AON Plc - Jul 10, 2012

From Bill Nygren's second-quarter letter:

AON PLC (AON-$47)
As one of only three insurance brokers with a global platform, AON (AON)’s market position should allow the company to directly benefit from global economic growth. AON stock surpassed $50 in 2007 when it earned just over $2 per share. In 2012, after a restructuring that improved margins, AON is expected to earn over $4 per share after adding back goodwill amortization from recent acquisitions. Despite the growth in earnings and the potential for further margin improvement, the stock has been stagnant. As a result, the P/E ratio for AON has fallen from 25 times in 2007 to 11 times now, slightly less than the P/E ratio for the S&P 500. Unlike the insurance business, insurance brokerage is not capital intensive. Therefore, we believe AON has the ability to return most of its earnings to shareholders through share repurchases and dividends. An additional feature we value is AON’s potential to generate meaningful interest income. AON, as a fiduciary, holds its clients’ capital for a short period of time before it is turned over to the insurance companies. With today’s low short-term interest rates, there is little opportunity to generate returns on that capital. We don’t believe short-term rates will stay low forever and like getting the option for more rapid earnings growth when rates increase.
Check out Bill Nygren latest stock trades

Top Ranked Articles about Aon plc

Mason Hawkins Comments on Aon
For Aon (AON), the world's largest insurance broker and a leading benefits manager, increasing cash flow and healthy share repurchases helped our position gain 53% for the year. As noted in our third quarter commentary, higher interest rates should improve fiduciary income and help close thepensiongap.Aon'sprivatehealthcare exchange for corporate employees gained critical mass with the addition of Walgreens to the client base. CEO Greg Case and his management team have built value per share through their customer- focused, shareholder-oriented leadership. Read more...
Omaha’s Other Oracle Wallace Weitz - Top Holdings in Review
Being known as The Other Oracle of Omaha is a good thing. Wallace “Wally” Weitz of Wallace R. Weitz & Co., is based in Omaha, Neb. His updated portfolio includes 60 stocks, one of them new, a total value of $2.65 billion, with a quarter-over-quarter turnover of 5%. The Weitz portfolio is weighted with top sectors: consumer cyclical at 17.5%, financial services at 15.6%, technology at 13.3% and health care at 13%. The stocks bought by Weitz are averaging a 12-month return of 28.02%. In 2012, he returned 19.72%. His 25-year cumulative return is 11.6% annually. Read more...
Mason Hawkins' Longleaf Partners Comments on Aon
For the YTD, Aon (AON), the world's largest insurance broker and a leading benefits management firm, was among the Fund's largest contributors as the company's lower tax rate and increasing cash flow helped drive a 35% return. Higher interest rates will increase fiduciary income and help close the gap in the underfunded pension. Although nascent, Aon's healthcare exchange for corporate employees is gaining critical mass, most recently adding Walgreen Co in the third quarter. We applaud Greg Case and his team for their customer- focused, shareholder-oriented leadership. Read more...
Mason Hawkins Comments on AON
Aon (AON) also performed well in the quarter and first half, adding 5% and 16% respectively. As the world's largest insurance broker, the Risk Solutions group grows with global economic recovery as insurance pricing and risk coverage increase. In addition, fiduciary income should rise as interest rates move up. CEO Greg Case and his team continue to improve the Human Resources segment, which has been hampered by various issues including European weakness. By repurchasing $300 million in shares at discounts to our appraisal, management built value per share over the period. Read more...
Wallace Weitz Comments on Aon
Aon ($64)(AON) Aon is a growing insurance brokerage firm whose stock was depressed by its acquisition of HR consultant Hewitt. Aon would be a beneficiary of higher insurance rates and increasing global economic activity. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 23.20
AON's P/E(ttm) is ranked higher than
56% of the 322 Companies
in the Global Insurance Brokers industry.

( Industry Median: 20.30 vs. AON: 23.20 )
AON' s 10-Year P/E(ttm) Range
Min: 6.42   Max: 24.77
Current: 23.2

6.42
24.77
P/B 3.00
AON's P/B is ranked lower than
59% of the 357 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.36 vs. AON: 3.00 )
AON' s 10-Year P/B Range
Min: 1.29   Max: 3.3
Current: 3

1.29
3.3
P/S 2.20
AON's P/S is ranked higher than
66% of the 393 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.01 vs. AON: 2.20 )
AON' s 10-Year P/S Range
Min: 0.8   Max: 2.8
Current: 2.2

0.8
2.8
PFCF 18.20
AON's PFCF is ranked lower than
52% of the 207 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.72 vs. AON: 18.20 )
AON' s 10-Year PFCF Range
Min: 5.63   Max: 215.46
Current: 18.2

5.63
215.46
EV-to-EBIT 16.40
AON's EV-to-EBIT is ranked higher than
57% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.72 vs. AON: 16.40 )
AON' s 10-Year EV-to-EBIT Range
Min: 8.3   Max: 22.7
Current: 16.4

8.3
22.7
PEG 1.60
AON's PEG is ranked higher than
61% of the 120 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.60 vs. AON: 1.60 )
AON' s 10-Year PEG Range
Min: 1.05   Max: 208.87
Current: 1.6

1.05
208.87
Shiller P/E 24.80
AON's Shiller P/E is ranked higher than
56% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.84 vs. AON: 24.80 )
AON' s 10-Year Shiller P/E Range
Min: 12.19   Max: 25.88
Current: 24.8

12.19
25.88

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.90
AON's Dividend Yield is ranked lower than
88% of the 299 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.50 vs. AON: 0.90 )
AON' s 10-Year Dividend Yield Range
Min: 0.6   Max: 3.1
Current: 0.9

0.6
3.1
Dividend Payout 0.15
AON's Dividend Payout is ranked higher than
90% of the 263 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.43 vs. AON: 0.15 )
AON' s 10-Year Dividend Payout Range
Min: 0.13   Max: 1.69
Current: 0.15

0.13
1.69
Dividend growth (3y) -4.40
AON's Dividend growth (3y) is ranked higher than
72% of the 169 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.50 vs. AON: -4.40 )
AON' s 10-Year Dividend growth (3y) Range
Min: -12.5   Max: 13.2
Current: -4.4

-12.5
13.2
Yield on cost (5-Year) 0.80
AON's Yield on cost (5-Year) is ranked lower than
88% of the 305 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.53 vs. AON: 0.80 )
AON' s 10-Year Yield on cost (5-Year) Range
Min: 0.53   Max: 2.76
Current: 0.8

0.53
2.76
Share Buyback Rate -1.90
AON's Share Buyback Rate is ranked higher than
66% of the 285 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.10 vs. AON: -1.90 )
AON' s 10-Year Share Buyback Rate Range
Min: 4.9   Max: -7.5
Current: -1.9

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.40
AON's Price/DCF (Projected) is ranked higher than
54% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. AON: 1.40 )
AON' s 10-Year Price/DCF (Projected) Range
Min: 0.76   Max: 1.43
Current: 1.4

0.76
1.43
Price/Median PS Value 1.40
AON's Price/Median PS Value is ranked lower than
59% of the 362 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.10 vs. AON: 1.40 )
AON' s 10-Year Price/Median PS Value Range
Min: 0.44   Max: 1.38
Current: 1.4

0.44
1.38
Price/Peter Lynch Fair Value 1.60
AON's Price/Peter Lynch Fair Value is ranked lower than
57% of the 58 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.20 vs. AON: 1.60 )
AON' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.63   Max: 4.08
Current: 1.6

0.63
4.08
Earnings Yield (Greenblatt) 6.10
AON's Earnings Yield (Greenblatt) is ranked higher than
61% of the 338 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.30 vs. AON: 6.10 )
AON' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.4   Max: 12.1
Current: 6.1

4.4
12.1
Forward Rate of Return (Yacktman) 16.76
AON's Forward Rate of Return (Yacktman) is ranked higher than
86% of the 273 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.80 vs. AON: 16.76 )
AON' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -3   Max: 20.9
Current: 16.76

-3
20.9

Business Description

Industry: Brokers & Exchanges » Insurance Brokers
Compare:BRO, WSH, MMC, ERIE, NFP » details
Traded in other countries:9H6.Germany
Aon plc provides risk management & human capital consulting services, delivering distinctive client value via risk management solutions, including insurance & reinsurance brokerage and workforce productivity solutions.

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