AON : NYSE : Financial
$117.54 | %
Today's Range: 117.08 - 118.17
Avg. Daily Volume: 964200.0
03/24/17 - 4:02 PM ET

Financial Analysis


AON PLC's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.27 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 10.33% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)3323.03288.0
EBITDA ($mil)941.0854.0
EBIT ($mil)810.0717.0
Net Income ($mil)502.0584.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)721.0740.0
Total Assets ($mil)26615.027164.0
Total Debt ($mil)6205.05737.0
Equity ($mil)5475.06106.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.3225.97
EBITDA Margin28.3125.97
Operating Margin24.3821.81
Sales Turnover0.440.43
Return on Assets5.245.09
Return on Equity25.4922.68
Debt Q4 FY16 Q4 FY15
Current Ratio1.051.07
Debt/Capital0.530.48
Interest Expense70.068.0
Interest Coverage11.5710.54


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)262.0269.8
Div / share0.330.3
EPS1.872.09
Book value / share20.922.63
Institutional Own % n/a n/a
Avg Daily Volume959121.01055632.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.66 for the Insurance industry and a discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 5.62 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 1.80. 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 22.72 Peers 23.66   AON 13.23 Peers 11.75

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 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 14.87 Peers 15.01   AON 0.97 Peers 1.48

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 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 5.62 Peers 1.80   AON 5.72 Peers -9.54

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.

 

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

AON is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AON 2.65 Peers 1.43   AON -0.48 Peers 15.12

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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