AON : NYSE : Financial
$135.91 -3.04 | -2.19%
Today's Range: 135.6 - 138.94
Avg. Daily Volume: 1179500.0
07/27/17 - 4:02 PM ET

Financial Analysis


AON PLC's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. AON PLC has very weak liquidity. Currently, the Quick Ratio is 0.22 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.95% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2381.02276.0
EBITDA ($mil)584.0495.0
EBIT ($mil)487.0420.0
Net Income ($mil)291.0325.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)633.01052.0
Total Assets ($mil)26982.026813.0
Total Debt ($mil)6277.06597.0
Equity ($mil)5754.05281.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin24.5321.75
EBITDA Margin24.5221.74
Operating Margin20.4518.45
Sales Turnover0.420.41
Return on Assets5.085.15
Return on Equity23.1425.69
Debt Q1 FY17 Q1 FY16
Current Ratio1.191.1
Debt/Capital0.520.56
Interest Expense70.069.0
Interest Coverage6.966.09


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)262.8264.8
Div / share0.330.3
EPS0.941.1
Book value / share21.919.94
Institutional Own % n/a n/a
Avg Daily Volume1184204.01002047.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.89 for the Insurance industry and a premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 6.34 indicates a significant premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 1.91. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AON 27.99 Peers 29.89   AON 15.85 Peers 11.69

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AON is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AON is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AON 17.36 Peers 16.36   AON 1.07 Peers 2.85

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AON is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AON trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AON 6.34 Peers 1.91   AON 2.26 Peers 19.96

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AON is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AON is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AON 3.25 Peers 1.51   AON 0.94 Peers 12.67

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AON is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AON significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades