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.

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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
Interest Expense70.069.0
Interest Coverage6.966.09

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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



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