📊 AON Key Takeaways
Is Aon plc (AON) a Good Investment?
Aon exhibits strong fundamentals with exceptional 34.1% operating margins and 9.4% revenue growth, supported by 36.3% EPS expansion and excellent 11.9x interest coverage. However, tight liquidity (1.07x current ratio) and modest free cash flow conversion (7.2%) require monitoring.
Aon shows high-quality fundamentals with strong operating and net margins, solid revenue growth, and robust free cash flow generation. Financial health appears sound despite elevated leverage, supported by strong interest coverage and adequate liquidity. The main watchpoint is that net income declined slightly while EPS rose sharply, suggesting per-share growth may be benefiting from capital allocation more than underlying earnings expansion.
Aon plc Key Strengths (AON)
- Exceptional operating margin of 34.1% demonstrates superior pricing power and operational efficiency in insurance brokerage
- Strong EPS growth of 36.3% YoY significantly outpacing 9.4% revenue growth indicates operational leverage
- Excellent interest coverage ratio of 11.9x with manageable debt-to-equity of 1.38x provides financial stability
- Consistent free cash flow generation of $363M supports reinvestment and shareholder distributions
- Strong profitability with 25.3% operating margin and 21.5% net margin
- Healthy cash generation with $3.22B in free cash flow and an 18.7% FCF margin
- Manageable debt burden relative to earnings, with 30.2x interest coverage and solid liquidity
AON Stock Risks: Aon plc Investment Risks
- Tight current ratio of 1.07x provides limited liquidity cushion for operational disruptions
- Moderate leverage with $13.5B long-term debt and $1.2B cash position limits financial flexibility
- Low free cash flow margin of 7.2% indicates capital-intensive operations relative to profitability
- Leverage is meaningful, with $15.25B in long-term debt and 1.63x debt-to-equity
- Net income declined 1.5% YoY despite revenue growth, indicating some margin or cost pressure
- ROE of 39.5% is strong but likely amplified by leverage, which can overstate underlying capital efficiency
Key Metrics to Watch
- Operating cash flow sustainability and free cash flow margin expansion
- Current ratio and working capital trends indicating liquidity health
- Debt service coverage and leverage trajectory under various economic scenarios
- Net income growth relative to EPS growth
- Free cash flow conversion and debt levels
Aon plc (AON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Aon plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AON Profit Margin, ROE & Profitability Analysis
AON vs Finance Sector: How Aon plc Compares
How Aon plc compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aon plc Stock Overvalued? AON Valuation Analysis 2026
Based on fundamental analysis, Aon plc has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aon plc Balance Sheet: AON Debt, Cash & Liquidity
AON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aon plc's revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.51 reflects profitable operations.
AON Revenue Growth, EPS Growth & YoY Performance
AON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.7B | $965.0M | $4.43 |
| Q3 2025 | $3.7B | $343.0M | $1.57 |
| Q2 2025 | $3.8B | $524.0M | $2.46 |
| Q1 2025 | $4.1B | $965.0M | $4.43 |
| Q3 2024 | $3.0B | $343.0M | $1.57 |
| Q2 2024 | $3.2B | $524.0M | $2.46 |
| Q1 2024 | $3.9B | $1.1B | $5.07 |
| Q3 2023 | $2.7B | $408.0M | $1.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aon plc Dividends, Buybacks & Capital Allocation
AON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aon plc (CIK: 0000315293)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AON
What is the AI rating for AON?
Aon plc (AON) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AON's key strengths?
Claude: Exceptional operating margin of 34.1% demonstrates superior pricing power and operational efficiency in insurance brokerage. Strong EPS growth of 36.3% YoY significantly outpacing 9.4% revenue growth indicates operational leverage. ChatGPT: Strong profitability with 25.3% operating margin and 21.5% net margin. Healthy cash generation with $3.22B in free cash flow and an 18.7% FCF margin.
What are the risks of investing in AON?
Claude: Tight current ratio of 1.07x provides limited liquidity cushion for operational disruptions. Moderate leverage with $13.5B long-term debt and $1.2B cash position limits financial flexibility. ChatGPT: Leverage is meaningful, with $15.25B in long-term debt and 1.63x debt-to-equity. Net income declined 1.5% YoY despite revenue growth, indicating some margin or cost pressure.
What is AON's revenue and growth?
Aon plc reported revenue of $5.0B.
Does AON pay dividends?
Aon plc pays dividends, with $162.0M distributed to shareholders in the trailing twelve months.
Where can I find AON SEC filings?
Official SEC filings for Aon plc (CIK: 0000315293) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AON's EPS?
Aon plc has a diluted EPS of $5.63.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AON's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aon plc has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AON stock overvalued or undervalued?
Valuation metrics for AON: ROE of 12.3% (sector avg: 12%), net margin of 24.1% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
What is AON's AI grade for 2026?
Our dual AI analysis gives Aon plc a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AON's free cash flow?
Aon plc's operating cash flow is $430.0M, with capital expenditures of $67.0M. FCF margin is 7.2%.
How does AON compare to other Finance stocks?
Vs Finance sector averages: Net margin 24.1% (avg: 25%), ROE 12.3% (avg: 12%), current ratio 1.07 (avg: 1.2).