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AON Stock Analysis: Hold (Score 54.9/100) | Blank Capital Research | Blank Capital Research
AON
Aon plc
$312.57
-12.83 (-3.94%)
Score54.9
Data as of Apr 6, 2026
AON
Aon plc
FinancialsInsurance
$312.57
-12.83 (-3.94%)
Open $323.16High $323.29Low $307.81Prev $325.40Vol ---52W: $304.59 – $402.49
Catalyst IntelligenceBearish Factor
Downward pressure identified in AON. The 3.9% decline correlates with broader sector weakness.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,051
Percentile
Top 24%
Business quality
75th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 75GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
25.4%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Aon plc (AON) receives a "Hold" rating with a composite score of 54.9/100, ranked #1051 out of 4446 stocks. Key factor scores: Quality 75/100, Value 61/100, Momentum 33/100. This is quantitative analysis only — not investment advice.
Aon plc (AON) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Aon plc Do?
Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captives management; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advice, restructuring, and mergers and acquisitions services; and corporate finance advisory services and capital markets solutions products. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; advice services on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions; and advice and solutions that help clients in risk, health, and wealth through commercial risk, reinsurance, health, and wealth solutions. Further, the company offers CoverWallet; Affinity; Aon Inpoint; CoverWallet; and ReView services. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland. Aon plc (AON) is classified as a large-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Gregory C. Case and employs approximately 50,000 people. With a market capitalization of $68.8B, AON is one of the prominent companies in the Financials sector.
Aon plc (AON) Stock Rating — Hold (April 2026)
As of April 2026, Aon plc receives a Hold rating with a composite score of 54.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AON ranks #1,051 out of 4,446 stocks in our coverage universe. Within the Financials sector, Aon plc ranks #324 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AON Stock Price and 52-Week Range
Aon plc (AON) currently trades at $312.57. The stock lost $12.83 (3.9%) in the most recent trading session. The 52-week high for AON is $402.49, which means the stock is currently trading -22.3% from its annual peak. The 52-week low is $304.59, putting the stock 2.6% above its annual trough. Recent trading volume was 2.4M shares, reflecting moderate market activity.
Is AON Overvalued or Undervalued? — Valuation Analysis
Aon plc (AON) carries a value factor score of 61/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 28.78x, compared to the Financials sector average of 14.88x — a premium of 93%. The price-to-book ratio stands at 7.30x, versus the sector average of 1.22x. The price-to-sales ratio is 4.16x, compared to 0.90x for the average Financials stock. On an enterprise value basis, AON trades at 22.44x EV/EBITDA, versus 3.26x for the sector.
Overall, AON's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Aon plc Profitability — ROE, Margins, and Quality Score
Aon plc (AON) earns a quality factor score of 75/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 25.4%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 4.7% versus the sector average of 1.2%.
On a margin basis, Aon plc reports gross margins of 0.0%. The operating margin is 22.2% (sector: 21.8%). Net profit margin stands at 14.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 12.1% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
AON Debt, Balance Sheet, and Financial Health
Aon plc has a debt-to-equity ratio of 161.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $15.25B. Cash and equivalents stand at $1.09B.
AON has a beta of 0.29, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Aon plc is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Aon plc Revenue and Earnings History — Quarterly Trend
In TTM 2026, Aon plc reported revenue of $16.60B and earnings per share (EPS) of $17.11. Net income for the quarter was $2.40B. Gross margin was 0.0%. Operating income came in at $3.76B.
In FY 2025, Aon plc reported revenue of $17.18B and earnings per share (EPS) of $17.11. Net income for the quarter was $3.75B. Revenue grew 9.4% year-over-year compared to FY 2024. Operating income came in at $4.34B.
In Q3 2025, Aon plc reported revenue of $4.00B and earnings per share (EPS) of $2.12. Net income for the quarter was $470M. Revenue grew 7.4% year-over-year compared to Q3 2024. Operating income came in at $816M.
In Q2 2025, Aon plc reported revenue of $4.16B and earnings per share (EPS) of $2.68. Net income for the quarter was $594M. Revenue grew 16.5% year-over-year compared to Q2 2024. Operating income came in at $859M.
Over the past 8 quarters, Aon plc has demonstrated a growth trajectory, with revenue expanding from $3.57B to $16.60B. Investors analyzing AON stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AON Dividend Yield and Income Analysis
Aon plc (AON) does not currently pay a dividend. This is common among growth-oriented companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
AON Momentum and Technical Analysis Profile
Aon plc (AON) has a momentum factor score of 33/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 39/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AON vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing AON against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AON vs S&P 500 (SPY) comparison to assess how Aon plc stacks up against the broader market across all factor dimensions.
AON Next Earnings Date
No upcoming earnings date has been announced for Aon plc (AON) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AON? — Investment Thesis Summary
Aon plc presents a balanced picture with arguments on both sides. The quality score of 75/100 indicates above-average profitability and business fundamentals. The value score of 61/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 33/100, a headwind for near-term performance. Low volatility (stability score 83/100) reduces downside risk.
In summary, Aon plc (AON) earns a Hold rating with a composite score of 54.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AON stock.
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Institutional Research Dossier
Aon plc (AON) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Aon plc. While the company exhibits strong profitability and stability, its current valuation appears stretched relative to its growth prospects and free cash flow generation. The firm's leading market position in risk, retirement, and health solutions provides a degree of defensibility, but the negative free cash flow and relatively high debt levels warrant caution.
Aon's high Quality score reflects its impressive ROE and operating margins, but the low Momentum and Investment scores suggest potential headwinds. The company's strategic focus on organic growth and strategic acquisitions is promising, but the execution of these initiatives and integration of acquired businesses will be critical to future performance. Investors should closely monitor free cash flow generation and debt reduction efforts.
Business Strategy & Overview
Aon operates as a global professional services firm, generating revenue primarily through providing advice and solutions in the areas of risk, retirement, and health. Its business model centers on offering specialized expertise to clients, helping them navigate complex challenges and optimize their performance. The company's revenue streams are diversified across its key segments: Commercial Risk Solutions, Reinsurance Solutions, Health Solutions, and Wealth Solutions.
Aon's strategic positioning is built on its deep industry knowledge, global reach, and data-driven insights. The company invests heavily in technology and analytics to enhance its service offerings and provide clients with actionable intelligence. Aon's product pipeline focuses on developing innovative solutions that address emerging risks and evolving client needs, such as cyber risk management, climate resilience, and workforce health.
The insurance brokerage and consulting industry is characterized by intense competition, with players ranging from large global firms to smaller regional specialists. Aon differentiates itself through its scale, breadth of services, and commitment to client service. The company's acquisition strategy plays a crucial role in expanding its capabilities and geographic footprint, allowing it to better serve multinational clients and capitalize on growth opportunities in emerging markets.
Aon's CoverWallet platform represents a strategic initiative to target the small and medium-sized business (SMB) market with digital insurance solutions. This offering leverages technology to streamline the insurance buying process and provide SMBs with access to a wider range of coverage options. The Affinity business focuses on providing customized insurance programs to members of associations and other affinity groups, further diversifying Aon's revenue base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
12.1%
Sector: 9.4%
+29% VS SCTR
Economic Moat Analysis
Aon possesses a Narrow economic moat, primarily derived from switching costs and intangible assets. The company's established relationships with clients, built over years of providing specialized advice and solutions, create a degree of stickiness. Clients are often reluctant to switch providers due to the disruption and potential loss of institutional knowledge that would result from transitioning to a new firm.
Aon's intangible assets, including its brand reputation and proprietary data, also contribute to its competitive advantage. The company's brand is recognized globally as a leader in risk management and consulting, which helps it attract and retain clients. Aon's extensive database of risk-related information provides it with a unique insight into emerging trends and allows it to develop more effective solutions for its clients.
While Aon benefits from switching costs and intangible assets, its moat is not considered Wide due to the presence of numerous competitors in the insurance brokerage and consulting industry. Large global firms like Marsh & McLennan and Willis Towers Watson, as well as smaller regional players, offer similar services and compete for the same clients. The industry is also subject to disruption from new entrants and technological innovations, which could erode Aon's competitive advantage over time.
The increasing complexity of risk management and the growing demand for specialized expertise are creating opportunities for Aon to widen its moat. By investing in technology, expanding its service offerings, and strengthening its client relationships, the company can further differentiate itself from its competitors and solidify its position as a leading provider of risk, retirement, and health solutions. However, failure to adapt to changing market conditions and maintain its competitive edge could lead to a narrowing of its moat.
Financial Health & Profitability
Aon's financial health presents a mixed picture. The company exhibits strong profitability, as evidenced by its high ROE of 25.4% compared to the sector average of 8.5%. Its operating margin of 22.2% is also slightly above the sector average of 22.0%. However, the company's net margin of 14.1% is below the sector average of 17.8%, suggesting potential inefficiencies in its cost structure.
Revenue growth has been robust, with a TTM revenue growth rate of 12.1% compared to the sector average of 9.3%. This indicates that Aon is successfully expanding its business and gaining market share. However, the company's free cash flow is a concern, with a TTM free cash flow of negative $865.77 million. This negative free cash flow raises questions about the company's ability to fund its growth initiatives and return capital to shareholders.
Aon's balance sheet is characterized by a relatively high level of debt. The company's total debt of $15.25 billion is significantly higher than its total cash of $1.09 billion. Its debt-to-equity ratio of 161.00 is also higher than the sector average of 115.00. This high level of leverage increases the company's financial risk and could limit its flexibility to pursue strategic opportunities.
Analyzing the quarterly financial history reveals some volatility in Aon's performance. While revenue has generally been trending upwards, net income and operating margins have fluctuated from quarter to quarter. The significant negative free cash flow in Q2 FY2024, coupled with a negative gross margin and unusually high operating margin, warrants further investigation. Overall, Aon's financial health is solid but requires careful monitoring due to its negative free cash flow and high debt levels.
Valuation Assessment
Aon's valuation appears stretched based on several key metrics. The company's P/E ratio of 19.0x is higher than the sector average of 15.5x, suggesting that investors are paying a premium for its earnings. Similarly, its EV/EBITDA ratio of 4.9x is higher than the sector average of 3.5x, indicating that the company is relatively expensive compared to its peers.
Given the negative free cash flow, a traditional FCF yield analysis is not applicable. This lack of positive free cash flow is a significant concern, as it limits the company's ability to return capital to shareholders and invest in future growth. The high valuation multiples, coupled with the negative free cash flow, suggest that the stock is currently overvalued.
While Aon's strong profitability and revenue growth may justify a premium valuation to some extent, the company's high debt levels and negative free cash flow warrant caution. Investors should carefully consider the risks associated with the company's financial profile before investing in the stock. A more attractive entry point may present itself if the company can improve its free cash flow generation and reduce its debt burden.
Relative to its historical valuation, Aon's current multiples are also elevated. This suggests that the market's expectations for the company's future performance are high. If Aon fails to meet these expectations, the stock could be subject to a significant correction. Therefore, we believe the current valuation does not offer a sufficient margin of safety, supporting our Hold rating.
Risk & Uncertainty
Aon faces several specific risks that could impact its business and financial performance. One key risk is the potential for increased competition in the insurance brokerage and consulting industry. New entrants and technological innovations could disrupt the market and erode Aon's competitive advantage. The company must continuously invest in innovation and adapt to changing market conditions to maintain its leading position.
Another risk is the potential for regulatory changes that could negatively impact Aon's business. The insurance industry is subject to extensive regulation, and changes in these regulations could increase compliance costs or limit the company's ability to operate in certain markets. Aon must closely monitor regulatory developments and proactively adapt its business practices to comply with new requirements.
Aon's high level of debt also poses a significant risk. The company's debt-to-equity ratio of 161.00 is relatively high, which increases its financial risk and could limit its flexibility to pursue strategic opportunities. Aon must prioritize debt reduction to strengthen its balance sheet and reduce its vulnerability to economic downturns.
The integration of acquired businesses also presents a risk. Aon has a history of making acquisitions, and the success of these acquisitions depends on the company's ability to effectively integrate the acquired businesses into its existing operations. Failure to successfully integrate acquisitions could lead to cost overruns, loss of key personnel, and a decline in overall performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAon's leading market position and global reach provide a strong foundation for future growth, allowing it to capitalize on increasing demand for risk management and consulting services.
BULL VIEWThe company's strategic focus on organic growth and strategic acquisitions will drive revenue growth and improve profitability, leading to higher shareholder returns.
BULL VIEWAon's investments in technology and analytics will enhance its service offerings and provide clients with actionable intelligence, further differentiating it from its competitors.
The Bear Case
BEAR VIEWAon's negative free cash flow and high debt levels raise concerns about its financial health and ability to fund future growth initiatives.
BEAR VIEWThe company's stretched valuation multiples suggest that the stock is overvalued, leaving limited upside potential for investors.
BEAR VIEWIncreased competition and regulatory changes could negatively impact Aon's business and financial performance, eroding its competitive advantage.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AON and 4,400+ other equities.
Aon plc exhibits a 386% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
22.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
14.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
