Aon Plc (AON) is a leading insurance brokers business based in the US. It opened the day at $204.2 after a previous close of $206.24. During the day the price has varied from a low of $203.67 to a high of $207.7. The latest price was $204.11 (25 minute delay). Aon is listed on the NYSE and employs 50,000 staff. All prices are listed in US Dollars.
Since the stock market crash in March caused by coronavirus, Aon's share price has had significant negative movement.
Its last market close was $209.19, which is 9.64% down on its pre-crash value of $231.51 and 45.34% up on the lowest point reached during the March crash when the shares fell as low as $143.93.
If you had bought $1,000 worth of Aon shares at the start of February 2020, those shares would have been worth $645.93 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $928.80.
|52-week range||$142.9015 - $236.4881|
|50-day moving average||$205.6059|
|200-day moving average||$200.2594|
|Wall St. target price||$222.46|
|Dividend yield||$1.84 (0.87%)|
|Earnings per share (TTM)||$7.76|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2021-01-15)||-1.84%|
|1 month (2020-12-22)||-2.45%|
|3 months (2020-10-22)||-1.62%|
|6 months (2020-07-22)||-1.80%|
|1 year (2020-01-22)||-3.68%|
|2 years (2019-01-22)||32.80%|
|3 years (2018-01-22)||50.10%|
|5 years (2016-01-22)||136.21%|
Valuing Aon stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Aon's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Aon's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Aon shares trade at around 27x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
However, Aon's P/E ratio is best considered in relation to those of others within the insurance brokers industry or those of similar companies.
Aon's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6117. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Aon's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Aon's PEG ratio in relation to those of similar companies.
Aon's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $3.6 billion (£2.7 billion).
The EBITDA is a measure of a Aon's overall financial performance and is widely used to measure a its profitability.
To put Aon's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$11 billion|
|Operating margin TTM||28.75%|
|Gross profit TTM||$5.2 billion|
|Return on assets TTM||6.63%|
|Return on equity TTM||51.94%|
|Market capitalisation||$48.1 billion|
TTM: trailing 12 months
There are currently 21.2 million Aon shares held short by investors – that's known as Aon's "short interest". This figure is 12.1% up from 18.9 million last month.
There are a few different ways that this level of interest in shorting Aon shares can be evaluated.
Aon's "short interest ratio" (SIR) is the quantity of Aon shares currently shorted divided by the average quantity of Aon shares traded daily (recently around 1.5 million). Aon's SIR currently stands at 13.89. In other words for every 100,000 Aon shares traded daily on the market, roughly 13890 shares are currently held short.
To gain some more context, you can compare Aon's short interest ratio against those of similar companies.
However Aon's short interest can also be evaluated against the total number of Aon shares, or, against the total number of tradable Aon shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Aon's short interest could be expressed as 0.09% of the outstanding shares (for every 100,000 Aon shares in existence, roughly 90 shares are currently held short) or 0.0936% of the tradable shares (for every 100,000 tradable Aon shares, roughly 94 shares are currently held short).
A SIR above 10% would generally be considered pretty high, pointing to a potentially pessimistic outlook for the share price and a discouraging interest in betting against Aon.
Find out more about how you can short Aon stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Aon.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 27.5
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Aon's overall score of 27.5 (as at 01/01/2019) is pretty good – landing it in it in the 35th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Aon is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Aon's total ESG risk score against those of similar companies.
Environmental score: 3.06/100
Aon's environmental score of 3.06 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Aon is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 14.44/100
Aon's social score of 14.44 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Aon is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 16/100
Aon's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Aon is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Aon scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Aon has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||27.5|
|Total ESG percentile||34.5|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||2|
Dividend payout ratio: 18.35% of net profits
Recently Aon has paid out, on average, around 18.35% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.87% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Aon shareholders could enjoy a 0.87% return on their shares, in the form of dividend payments. In Aon's case, that would currently equate to about $1.84 per share.
While Aon's payout ratio might seem low, this can signify that Aon is investing more in its future growth.
Aon's most recent dividend payout was on 13 November 2020. The latest dividend was paid out to all shareholders who bought their shares by 30 October 2020 (the "ex-dividend date").
Aon's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Aon's shares were split on a 3:2 basis on 18 May 1999. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Aon shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Aon shares which in turn could have impacted Aon's share price.
Over the last 12 months, Aon's shares have ranged in value from as little as $142.9015 up to $236.4881. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Aon's is 0.8352. This would suggest that Aon's shares are less volatile than average (for this exchange).
To put Aon's beta into context you can compare it against those of similar companies.
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 captive insurance solutions provider; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as mergers and acquisition, capital raising, strategic advisory, restructuring, and recapitalization services; insurance-linked securities; and corporate finance advisory services, capital markets solutions, and risk management products. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management for organizations; 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 accelerating business outcomes by enhancing the performance of their people, including assessment and optimized deployment, as well as the design, alignment, and benchmarking of compensation to business strategy and performance outcomes. Further, the company develops, markets, and administers customized insurance programs and specialty market solutions for organizations, and their members or affiliates; operates the Global Risk Insight Platform, which provides data, analytics, engagement, and consulting services; and offers ReView that provides advisory, analysis, and benchmarking services to help reinsurers. Aon plc has collaboration with Athenium Analytics to develop a claims quality platform to enable insurers to identify high-risk claims. The company was founded in 1919 and is based in London, the United Kingdom.
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