📊 AON Key Takeaways
Is Aon plc (AON) a Good Investment?
Aon demonstrates strong fundamental financial health with robust profitability metrics (21.5% net margin, 39.5% ROE) and exceptional cash generation (3.2B FCF, 18.7% FCF margin). Revenue growth of 9.4% YoY combined with outstanding interest coverage (30.2x) indicates a well-capitalized, operationally efficient business with solid growth trajectories, though elevated leverage (1.63x debt/equity) requires 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.
Why Buy Aon plc Stock? AON Key Strengths
- Exceptional profitability with 25.3% operating margin and 21.5% net margin in insurance services sector
- Outstanding return on equity of 39.5% and strong free cash flow generation of 3.2B annually
- Robust debt servicing capability with 30.2x interest coverage ratio despite 1.63x leverage
- Consistent revenue growth of 9.4% YoY demonstrating market share gains and operational momentum
- Strong free cash flow margin of 18.7% providing flexibility for capital allocation and debt reduction
- 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
- Elevated debt-to-equity ratio of 1.63x with 15.2B long-term debt relative to 9.4B equity creates refinancing risk
- Net income declined 1.5% YoY despite 9.4% revenue growth, indicating margin compression or one-time charges requiring investigation
- Tight current ratio of 1.11x suggests limited short-term liquidity cushion relative to current liabilities
- Insurance and brokerage sector exposure to economic cycles and potential commission/fee compression
- 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 conversion to ensure financial flexibility
- Debt-to-equity trajectory and interest expense trends to monitor deleveraging progress
- Net margin recovery and gross profitability metrics to diagnose 1.5% YoY net income decline
- Current ratio and working capital management to ensure adequate liquidity coverage
- 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 appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $3.0B | $501.0M | $2.33 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AON's key strengths?
Claude: Exceptional profitability with 25.3% operating margin and 21.5% net margin in insurance services sector. Outstanding return on equity of 39.5% and strong free cash flow generation of 3.2B annually. 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: Elevated debt-to-equity ratio of 1.63x with 15.2B long-term debt relative to 9.4B equity creates refinancing risk. Net income declined 1.5% YoY despite 9.4% revenue growth, indicating margin compression or one-time charges requiring investigation. 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 $17.2B.
Does AON pay dividends?
Aon plc pays dividends, with $629.0M 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 $17.02.
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 rating reflects both perspectives for balanced insights.
Is AON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Aon plc has a BUY rating 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 39.5% (sector avg: 12%), net margin of 21.5% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy AON stock in 2026?
Our dual AI analysis gives Aon plc a combined BUY rating 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 $3.5B, with capital expenditures of $263.0M. FCF margin is 18.7%.
How does AON compare to other Finance stocks?
Vs Finance sector averages: Net margin 21.5% (avg: 25%), ROE 39.5% (avg: 12%), current ratio 1.11 (avg: 1.2).
Is Aon plc carrying too much debt?
AON has a debt-to-equity ratio of 1.63x, which is above the Finance sector average of 2x. However, the current ratio of 1.11 suggests adequate short-term liquidity.
Why is AON's return on equity (ROE) so high?
Aon plc has a return on equity of 39.5%, significantly above the Finance sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 21.5% net margin.