Last Updated: 14 Sep 2024
Executive Summary
Aon PLC (NYSE: AON) is a leading global professional services firm providing risk mitigation solutions, including insurance, pension administration, and health insurance plans. With a market capitalization of $75.57 billion, Aon has a strong financial position and is well-positioned to continue its growth trajectory. The company's latest stock price of $347.85 is slightly above its 50-day moving average, indicating short-term momentum.
Company Overview
Aon was founded in 1982 and has since grown into a multinational corporation with operations in over 120 countries. The company's core business segments include:
Commercial Risk Solutions: Provides insurance brokerage and risk management services to businesses.
Reinsurance Solutions: Offers reinsurance solutions to insurance companies.
Health Solutions: Administers health insurance plans and provides consulting services.
Human Capital Solutions: Offers pension administration, employee benefits, and talent management services.
Fundamental Analysis
Aon's financial performance has been solid in recent years. The company has consistently reported strong revenue and earnings growth, driven by increased demand for its risk mitigation services.
Revenue: Aon's revenue for the trailing twelve months (TTM) was $14.16 billion, representing a 0.18% year-over-year growth.
Earnings: Diluted earnings per share (EPS) for the TTM were $12.43, a decline of 0.09% year-over-year.
Profitability: Aon's profit margin is 18.0%, while its operating margin is 22.8%.
Balance Sheet: Aon has a strong balance sheet with $26.98 in book value per share. The company's debt-to-equity ratio is 0.56, which is considered manageable.
Technical Analysis
Aon's stock price has been trending sideways in recent months, with the latest price of $347.85 slightly above its 50-day moving average. The 200-day moving average is at $309.15, providing support.
The Relative Strength Index (RSI) is at 52.85, indicating that the stock is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) is also neutral, suggesting that there is no clear trend at the moment.
Short Term Outlook
In the short term, Aon's stock price is likely to remain range-bound, with support at the 200-day moving average and resistance at the 52-week high of $352.49. The company's solid financial performance and positive analyst sentiment should provide some support for the stock.
Long Term Outlook
Over the long term, Aon is well-positioned to continue its growth trajectory. The company's global presence, diversified business segments, and strong balance sheet provide a solid foundation for future success. The increasing demand for risk mitigation solutions should drive continued revenue and earnings growth.
Analyst Recommendations
Analysts are generally positive on Aon's long-term prospects. The consensus analyst rating is "Buy," with an average target price of $346.71. Of the analysts covering Aon, 1 has a "Strong Buy" rating, 4 have "Buy" ratings, 12 have "Hold" ratings, 3 have "Sell" ratings, and 0 have "Strong Sell" ratings.
