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66.18 (1y: +41%)
Market Cap 20.44 B P/E(ttm) 21.40
Enterprise Value 24.25 B P/B 2.70
AON- NYSE (USA)
Aon plc
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$66.18
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GuruFocus Financial Strength Rank measures how strong a companyย’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 : 6/10

vs
industry		 vs
history
Cash to Debt 0.153
AON's Cash to Debt is ranked lower than
81% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2100.97 vs. AON: 0.153 )
AON' s 10-Year Cash to Debt Range
Min: 0.12   Max: 2.02
Current: 0.15
0.12
2.02
Equity to Asset -0.136
AON's Equity to Asset is ranked lower than
93% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.24 vs. AON: -0.136 )
AON' s 10-Year Equity to Asset Range
Min: -0.14   Max: 0.04
Current: -0.14
-0.14
0.04
Interest Coverage 7.3
AON's Interest Coverage is ranked lower than
81% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 10000.00 vs. AON: 7.3 )
AON' s 10-Year Interest Coverage Range
Min: 4   Max: 12
Current: 7.3
4
12
F-Score: 6
Z-Score: 1.38
M-Score: -2.75
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 7/10

vs
industry		 vs
history
Operating margin (%) 13.90
AON's Operating margin (%) is ranked higher than
52% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 16.70 vs. AON: 13.90 )
AON' s 10-Year Operating margin (%) Range
Min: 6.9   Max: 15.7
Current: 13.9
6.9
15.7
Net-margin (%) 8.6
AON's Net-margin (%) is ranked higher than
53% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.55 vs. AON: 8.6 )
AON' s 10-Year Net-margin (%) Range
Min: 2.6   Max: 19.2
Current: 8.6
2.6
19.2
ROE (%) 12.8
AON's ROE (%) is ranked higher than
82% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.60 vs. AON: 12.8 )
AON' s 10-Year ROE (%) Range
Min: 5.8   Max: 27.5
Current: 12.8
5.8
27.5
ROA (%) 3.3
AON's ROA (%) is ranked higher than
76% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.20 vs. AON: 3.3 )
AON' s 10-Year ROA (%) Range
Min: 0.9   Max: 6.4
Current: 3.3
0.9
6.4
ROC (Joel Greenblatt) (%) 95.70
AON's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 63.60 vs. AON: 95.70 )
AON' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 71.6   Max: 1602.9
Current: 95.7
71.6
1602.9
Revenue Growth (%) 7.3
AON's Revenue Growth (%) is ranked higher than
84% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. AON: 7.3 )
AON' s 10-Year Revenue Growth (%) Range
Min: -6.3   Max: 7.3
Current: 7.3
-6.3
7.3
EBITDA Growth (%) 11.8
AON's EBITDA Growth (%) is ranked higher than
90% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.85 vs. AON: 11.8 )
AON' s 10-Year EBITDA Growth (%) Range
Min: -40   Max: 78.2
Current: 11.8
-40
78.2
EPS Growth (%) 3.9
AON's EPS Growth (%) is ranked higher than
65% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -2.95 vs. AON: 3.9 )
AON' s 10-Year EPS Growth (%) Range
Min: -23   Max: 22.3
Current: 3.9
-23
22.3
ยป AON's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

AON Guru Trades in Q2 2012

Bill Nygren 1,300,000 sh (New)
NWQ Managers 6,312,140 sh (+131.14%)
Steven Cohen 27,978 sh (+84.86%)
Jeremy Grantham 66,500 sh (+21.13%)
First Pacific Advisors 7,256,600 sh (+5.54%)
Steven Romick 6,590,000 sh (+5.1%)
Pioneer Investments 913,320 sh (+2.15%)
Wallace Weitz 2,202,032 sh (+1.56%)
Mason Hawkins 26,995,051 sh (+0.39%)
Ruane Cunniff 426,650 sh (unchged)
John Keeley 40,245 sh (unchged)
Glenn Greenberg Sold Out
Dodge & Cox Sold Out
Louis Moore Bacon Sold Out
Charles Brandes 138,870 sh (-3.93%)
Chris Davis 1,264,575 sh (-6.84%)
Charles de Vaulx 1,622,210 sh (-8.89%)
Arnold Schneider 33,216 sh (-9.62%)
Larry Robbins 2,694,138 sh (-24.96%)
» More
Q3 2012

AON Guru Trades in Q3 2012

Jeremy Grantham 81,800 sh (+23.01%)
Bill Nygren 1,400,000 sh (+7.69%)
Larry Robbins 2,836,376 sh (+5.28%)
Steven Romick 6,685,000 sh (+1.44%)
First Pacific Advisors 7,343,900 sh (+1.2%)
John Keeley 40,355 sh (+0.27%)
Ruane Cunniff 426,650 sh (unchged)
Pioneer Investments Sold Out
Arnold Schneider Sold Out
Mason Hawkins 26,332,239 sh (-2.46%)
Wallace Weitz 2,147,032 sh (-2.5%)
NWQ Managers 5,930,872 sh (-6.04%)
Charles Brandes 129,738 sh (-6.58%)
Charles de Vaulx 1,439,280 sh (-11.28%)
Chris Davis 377,875 sh (-70.12%)
Steven Cohen 4,227 sh (-84.89%)
» More
Q4 2012

AON Guru Trades in Q4 2012

Steven Cohen 26,458 sh (+525.93%)
Bill Nygren 1,770,000 sh (+26.43%)
John Keeley 40,415 sh (+0.15%)
Jeremy Grantham 79,100 sh (unchged)
Ruane Cunniff 426,650 sh (unchged)
Larry Robbins 2,828,041 sh (-0.29%)
Wallace Weitz 2,137,442 sh (-0.45%)
First Pacific Advisors 7,025,500 sh (-4.34%)
Steven Romick 6,380,300 sh (-4.56%)
Charles Brandes 122,253 sh (-5.77%)
NWQ Managers 5,390,671 sh (-9.11%)
Charles de Vaulx 1,233,863 sh (-14.27%)
Chris Davis 322,695 sh (-14.6%)
Mason Hawkins 20,586,365 sh (-21.82%)
» More
Q1 2013

AON Guru Trades in Q1 2013

Joel Greenblatt 24,712 sh (New)
Jim Simons 389,801 sh (New)
Pioneer Investments 304,680 sh (New)
Jeremy Grantham 100,100 sh (+26.55%)
Bill Nygren 1,770,000 sh (unchged)
Ruane Cunniff 426,650 sh (unchged)
John Keeley 40,415 sh (unchged)
Chris Davis 322,285 sh (-0.13%)
Wallace Weitz 2,116,404 sh (-0.98%)
First Pacific Advisors 6,891,000 sh (-1.91%)
Steven Romick 6,249,200 sh (-2.05%)
Charles Brandes 119,355 sh (-2.37%)
Mason Hawkins 20,082,577 sh (-2.45%)
Larry Robbins 2,615,317 sh (-7.52%)
NWQ Managers 4,689,177 sh (-13.01%)
Steven Cohen 9,528 sh (-63.99%)
» More
» Details

Insider Trades

Latest Guru Trades with AON

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 New Buy0.08%$54.9 - $61.82 $ 66.1813%24712
Mason Hawkins 2012-12-31 Reduce -21.82%1.33%$52.08 - $57.74 $ 66.1820%20586365
Glenn Greenberg 2012-06-30 Sold Out 4.61%$45.29 - $51.85 $ 66.1838%0
Dodge & Cox 2012-06-30 Sold Out $45.29 - $51.85 $ 66.1838%0
Mason Hawkins 2012-03-31 Add 17.18%0.82%$46.14 - $49.37 $ 66.1850%26890582
Leon Cooperman 2012-03-31 Sold Out 0.2%$46.14 - $49.37 $ 66.1850%0
Glenn Greenberg 2011-12-31 Reduce -41.38%4.35%$40.62 - $50.94 $ 66.1844%1508051
Leon Cooperman 2011-12-31 Reduce -76.4%0.68%$40.62 - $50.94 $ 66.1844%168700
Glenn Greenberg 2011-09-30 Add 12.33%1.15%$40 - $51.83 $ 66.1843%2572423
Ruane Cunniff 2011-09-30 Reduce -48.36%0.19%$40 - $51.83 $ 66.1843%427170
Mason Hawkins 2011-09-30 Add 3.63%0.16%$40 - $51.83 $ 66.1843%23084982
Glenn Greenberg 2011-06-30 Add 39.17%2.89%$49.12 - $53.8 $ 66.1828%2290106
Leon Cooperman 2011-06-30 Add 48.24%0.31%$49.12 - $53.8 $ 66.1828%818311
Wallace Weitz 2011-06-30 Add 1.96%0.1%$49.12 - $53.8 $ 66.1828%2383886
George Soros 2011-06-30 Sold Out $49.12 - $53.8 $ 66.1828%0
Glenn Greenberg 2011-03-31 New Buy7.45%$43.83 - $52.93 $ 66.1835%1645494
Wallace Weitz 2010-12-31 Add 20.24%0.88%$38.99 - $46.05 $ 66.1859%2306998
John Keeley 2010-12-31 New Buy0.03%$38.99 - $46.05 $ 66.1859%46560
Dodge & Cox 2010-12-31 New Buy$38.99 - $46.05 $ 66.1859%5077
Wallace Weitz 2010-09-30 Add 46.91%1.19%$35.62 - $39.62 $ 66.1876%1918650
Mason Hawkins 2010-09-30 Add 7.85%0.3%$35.62 - $39.62 $ 66.1876%23546926
George Soros 2010-09-30 Reduce -71.76%$35.62 - $39.62 $ 66.1876%6100
Wallace Weitz 2010-06-30 New Buy2.66%$37.72 - $44.26 $ 66.1861%1306000
Mason Hawkins 2010-06-30 Add 23.21%0.77%$37.72 - $44.26 $ 66.1861%21833526
Charles Brandes 2010-06-30 New Buy0.06%$37.72 - $44.26 $ 66.1861%240793
David Dreman 2010-06-30 Sold Out 0.01%$37.72 - $44.26 $ 66.1861%0
Dodge & Cox 2010-06-30 Sold Out $37.72 - $44.26 $ 66.1861%0
Mason Hawkins 2010-03-31 Add 28.31%0.77%$37.56 - $42.9 $ 66.1865%17721029
David Dreman 2010-03-31 New Buy0.01%$37.56 - $42.9 $ 66.1865%9051
Dodge & Cox 2010-03-31 Reduce -30.23%$37.56 - $42.9 $ 66.1865%5077
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Aon plc

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)โ€™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 AONโ€™s potential to generate meaningful interest income. AON, as a fiduciary, holds its clientsโ€™ capital for a short period of time before it is turned over to the insurance companies. With todayโ€™s low short-term interest rates, there is little opportunity to generate returns on that capital. We donโ€™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

Q&A with Investor Steven Romick of FPA Funds
August 28, 2012
Steven Romick - Q&A With Investor Steven Romick Of FPA Funds
Top investor Steven Romick will join GuruFocus for an interview this month. You can ask him a question related to investing by leaving it as a comment below. GuruFocus will receive his answers via a phone interview in the next several weeks. Read more...
The Stocks Steven Romick Keeps Buying
July 25, 2012
Steven Romick - The Stocks Steven Romick Keeps Buying
Steven Romick is a strict bottom-up investor who does not neglect the macro picture. In the second quarter he finds stocks neither particularly cheap nor particularly expensive, according to his second-quarter commentary on his FPA Crescent Fund. He believes that Central Bankers are leading the world to inflation where his stocks should at least perform โ€œnominally well,โ€ but says, โ€œIf a business or asset is good and cheap โ€“ absolutely, not relatively โ€“ we'll buy it.โ€ Read more...
Bill Nygren Comments on AON Plc
July 10, 2012
[b]From Bill Nygren's second-quarter letter: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 21.40
AON's P/E(ttm) is ranked higher than
63% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 18.27 vs. AON: 21.40 )
AON' s 10-Year P/E(ttm) Range
Min: 6.42   Max: 58.31
Current: 21.4
6.42
58.31
P/B 2.70
AON's P/B is ranked lower than
62% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.30 vs. AON: 2.70 )
AON' s 10-Year P/B Range
Min: 1.16   Max: 3.31
Current: 2.7
1.16
3.31
P/S 1.88
AON's P/S is ranked higher than
64% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.10 vs. AON: 1.88 )
AON' s 10-Year P/S Range
Min: 0.52   Max: 2.4
Current: 1.88
0.52
2.4
PFCF 17.80
AON's PFCF is ranked lower than
86% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 8.17 vs. AON: 17.80 )
AON' s 10-Year PFCF Range
Min: 3.53   Max: 112.22
Current: 17.8
3.53
112.22
EV-to-EBIT 15.2
AON's EV-to-EBIT is ranked higher than
76% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 14.81 vs. AON: 15.2 )
AON' s 10-Year EV-to-EBIT Range
Min: 6.6   Max: 41.3
Current: 15.2
6.6
41.3
PEG 1.5
AON's PEG is ranked lower than
72% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.80 vs. AON: 1.5 )
AON' s 10-Year PEG Range
Min: 0.29   Max: 56.17
Current: 1.5
0.29
56.17
Shiller P/E 20.3
AON's Shiller P/E is ranked higher than
89% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.40 vs. AON: 20.3 )
AON' s 10-Year Shiller P/E Range
Min: 11.65   Max: 22.78
Current: 20.3
11.65
22.78

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.98
AON's Dividend Yield is ranked lower than
51% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.06 vs. AON: 0.98 )
AON' s 10-Year Dividend Yield Range
Min: 0.72   Max: 5.85
Current: 0.98
0.72
5.85
Dividend Payout 0.1527
AON's Dividend Payout is ranked higher than
95% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.68 vs. AON: 0.1527 )
AON' s 10-Year Dividend Payout Range
Min: 0.12   Max: 1.2
Current: 0.15
0.12
1.2
Dividend growth (3y) 0.9
AON's Dividend growth (3y) is ranked lower than
80% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -5.90 vs. AON: 0.9 )
AON' s 10-Year Dividend growth (3y) Range
Min: -9.5   Max: 5.1
Current: 0.9
-9.5
5.1
Yield on cost (5-Year) 1.04
AON's Yield on cost (5-Year) is ranked lower than
51% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.34 vs. AON: 1.04 )
AON' s 10-Year Yield on cost (5-Year) Range
Min: 0.75   Max: 6.09
Current: 1.04
0.75
6.09
Share Buyback Rate -3.4
AON's Share Buyback Rate is ranked higher than
51% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: -0.40 vs. AON: -3.4 )
AON' s 10-Year Share Buyback Rate Range
Min: 4   Max: -5.4
Current: -3.4

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 9.1
AON's Price/Net Current Asset Value is ranked higher than
78% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.50 vs. AON: 9.1 )
AON' s 10-Year Price/Net Current Asset Value Range
Min: 0.7   Max: 9.6
Current: 9.1
0.7
9.6
Price/DCF (Projected) 1.3
AON's Price/DCF (Projected) is ranked higher than
91% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.80 vs. AON: 1.3 )
AON' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 1.2
Current: 1.3
0.8
1.2
Price/Median PS Value 1.4
AON's Price/Median PS Value is ranked higher than
81% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.00 vs. AON: 1.4 )
AON' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.5
Current: 1.4
0.4
1.5
Price/Peter Lynch Fair Value 1.3
AON's Price/Peter Lynch Fair Value is ranked lower than
72% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.40 vs. AON: 1.3 )
AON' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 3
Current: 1.3
0.5
3
Earnings Yield (Greenblatt) 6.60
AON's Earnings Yield (Greenblatt) is ranked higher than
73% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9.05 vs. AON: 6.60 )
AON' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.4   Max: 15.2
Current: 6.6
2.4
15.2
Forward Rate of Return (Yacktman) 18.37
AON's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 176 Companies
in the Global Insurance Brokers industry.

( Industry Median: 7.98 vs. AON: 18.37 )
AON' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.3   Max: 43.2
Current: 18.37
0.3
43.2

Business Description

Aon Corporation was incorporated in Delaware, in 1979. provides risk management and human capital consulting services, delivering distinctive client value via innovative and effective risk management solutions, including insurance and reinsurance brokerage and workforce productivity solutions. The Company, through its subsidiaries, serves its clients through two operating segments: Risk and Insurance Brokerage Services and Consulting. The Company provides risk and insurance brokerage and related services in this segment primarily through its Aon Risk Services and Aon Benfield companies. It operates in this segment through two product lines: retail brokerage and reinsurance brokerage. Retail brokerage encompasses its retail brokerage services, affinity products, managing general underwriting, placement, and captive management services. Reinsurance brokerage offers advisory services in program design and claim recoveries that enhance the risk/return characteristics of insurance policy portfolios, improve capital utilization, and evaluate and mitigate catastrophic loss exposures worldwide. The Company generates revenues through commissions, fees from clients, and compensation from insurance and reinsurance companies for services they provide to them. Commission rates and fees vary depending upon several factors, which may include the amount of premium, the type of insurance or reinsurance coverage provided, the particular services provided to an insurer or reinsurer, and the capacity in which they act. The risk and insurance brokerage services business is competitive, and they compete mainly with two other global insurance brokers, Marsh & McLennan Companies, Inc. and Willis Group Holdings Ltd., in addition to numerous specialists, regional and local firms in almost every area of its business. It provides products and services in this segment mainly through Aon Consulting, offering a range of consulting services in the following practice areas: Consulting Services and Outsourcing. The Company's business activities are subject to licensing requirements and extensive regulation under U.S. federal and state laws, as well as the laws of other countries in which they operate.
Company Website
SEC Reports
Industry: Insurance Brokers
Compare:BRO, WSH, MMC, ERIE, NFP
Traded in other countries:9H6.Germany
ยป More Articles for AON

Headlines

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Q&A with Investor Steven Romick of FPA Funds Aug 28 2012 
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Mason Hawkins of Southeastern Asset Management Answering Readers' Questions Now Jul 17 2012 
Bill Nygren Comments on AON Plc Jul 10 2012 
Bill Nygren of Oakmark Releases His Second Quarter Letter to Investors Jul 10 2012 
Steve Romick: Fed Experiment Won't End Well Jun 24 2012 

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