NYSE · Financial Services

Aon plc

AON · Insurance Brokers

$317.74

▼ -8.95 (-2.74%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 52.5%

Operating Margin 35.9%

Net Income Margin 24.1%

Fin. Health

D⤢

Years to Pay Off Debt 12.8 yrs

Working Capital vs Long-Term Debt -$11.9B

Working Capital $1.6B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 6.90x

Cash Flow

A⤢

Free Cash Flow $363M

CapEx % of Net Income 5.5%

Owner Earnings $1.5B

Profitability

Gross Profit Margin 52.5%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 35.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 24.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 12.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$11.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $363M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 5.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.5B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Aon plc

Aon plc operates as a professional services firm in the United States, rest of the Americas, the United Kingdom, Ireland, rest of Europe, the Middle East, Africa, and the Asia Pacific. It operates through Risk Capital and Human Capital segments. The company offers commercial risk solutions comprising retail and insurance brokerage, specialty solutions, global risk consulting, captives management, and affinity programs; health solutions, such as consulting and brokerage, consumer benefits, and talent advisory services; and wealth solutions, including retirement consulting and investments. It also provides treaty and facultative reinsurance; strategy and technology group solutions; insurance-linked securities, capital raising, strategic advice, restructuring, and merger and acquisition services; and risk management products and solutions, capital market solutions, and corporate finance advisory services. In addition, the company offers strategic design advice and actuarial services; pension risk transfer and integrated pension administration; and investment advisory services on developing and maintaining investment programs across various plan types, including defined benefit plans, defined contribution plans, master trusts, and pooled employer plans for corporations, public pensions, endowments, and foundations. Aon plc was incorporated in 1979 and is headquartered in Dublin, Ireland.

Market Data

Market Cap $67.9B

Enterprise Value $85.2B

P/E (TTM) 17.43

Dividend Yield 0.91%

Exchange NYSE

Key Margins

Gross Profit 52.5%

Operating Margin 35.9%

Net Margin 24.1%

Company Info

Sector Financial Services

Industry Insurance Brokers

Employees 60000

Country Ireland

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Aon plc at $317.74.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $317.74, the stock trades at a 316% premium to its Graham Number of $76.37. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	52.5%▲	50.8%•	N/A
Operating Margin %	35.9%▲	31.1%•	N/A
Net Income %	24.1%▼	39.4%•	N/A
Diluted EPS	5.63▼	7.82•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$51.4B	$50.8B	N/A
Total Debt	$15.5B▼	$16.1B•	N/A
Working Capital	$1.6B▼	$2.5B•	N/A
Years to Pay Debt	12.77	9.49	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$363M▼	$1.3B•	N/A
Owner Earnings	$1.5B	$2.0B	N/A
CapEx % of Net Income	5.5%	4.4%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-14,544	243,699
Tax Rate For Calcs	0	0
Normalized EBITDA	2,002,000	1,567,000
Total Unusual Items	-72,000	1,066,000
Total Unusual Items Excluding Goodwill	-72,000	1,066,000
Net Income From Continuing Operation Net Minority Interest	1,212,000	1,693,000
Reconciled Depreciation	198,000	233,000
Reconciled Cost Of Revenue	2,393,000	2,117,000
EBITDA	1,930,000	2,633,000
EBIT	1,732,000	2,400,000
Net Interest Income	-167,000	-177,000
Interest Expense	179,000	191,000
Interest Income	12,000	14,000
Normalized Income	1,269,456	870,699
Net Income From Continuing And Discontinued Operation	1,212,000	1,693,000
Total Expenses	3,227,000	2,963,000
Rent Expense Supplemental	81,000	85,000
Total Operating Income As Reported	1,715,000	1,208,000
Diluted Average Shares	215,400	216,500
Basic Average Shares	214,300	215,100
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,212,000	1,693,000
Net Income Common Stockholders	1,212,000	1,693,000
Net Income	1,212,000	1,693,000
Minority Interests	-27,000	-11,000
Net Income Including Noncontrolling Interests	1,239,000	1,704,000
Net Income Continuous Operations	1,239,000	1,704,000
Tax Provision	314,000	505,000
Pretax Income	1,553,000	2,209,000
Other Income Expense	-87,000	1,049,000
Other Non Operating Income Expenses	-15,000	-22,000
Special Income Charges	-72,000	1,179,000
Gain On Sale Of Business	20,000	1,308,000
Other Special Charges			0
Restructuring And Mergern Acquisition	92,000	129,000
Earnings From Equity Interest	0	5,000
Gain On Sale Of Security		-113,000	6,000
Net Non Operating Interest Income Expense	-167,000	-177,000
Interest Expense Non Operating	179,000	191,000
Interest Income Non Operating	12,000	14,000
Operating Income	1,807,000	1,337,000
Operating Expense	834,000	846,000
Other Operating Expenses	144,000	156,000
Depreciation Amortization Depletion Income Statement	198,000	233,000
Depreciation And Amortization In Income Statement	198,000	233,000
Amortization	152,000	185,000
Amortization Of Intangibles Income Statement	152,000	185,000
Depreciation Income Statement	46,000	48,000
Selling General And Administration	492,000	457,000
General And Administrative Expense	492,000	457,000
Other Gand A	411,000	372,000
Rent And Landing Fees	81,000	85,000
Salaries And Wages			13,000
Gross Profit	2,641,000	2,183,000
Cost Of Revenue	2,393,000	2,117,000
Total Revenue	5,034,000	4,300,000
Operating Revenue	5,041,000	4,304,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	213,600	214,500
Share Issued	213,600	214,500
Net Debt	13,485,000	14,054,000
Total Debt	15,474,000	16,071,000
Tangible Book Value	-11,917,000	-12,172,000
Invested Capital	24,497,000	24,601,000
Working Capital	1,626,000	2,548,000
Net Tangible Assets	-11,917,000	-12,172,000
Capital Lease Obligations	811,000	822,000
Common Stock Equity	9,834,000	9,352,000
Total Capitalization	23,376,000	24,012,000
Total Equity Gross Minority Interest	9,980,000	9,548,000
Minority Interest	146,000	196,000
Stockholders Equity	9,834,000	9,352,000
Gains Losses Not Affecting Retained Earnings	-3,928,000	-3,843,000
Other Equity Adjustments	-3,928,000	-3,843,000
Retained Earnings	307,000	-245,000
Additional Paid In Capital	13,453,000	13,438,000
Capital Stock	2,000	2,000
Common Stock	2,000	2,000
Total Liabilities Net Minority Interest	41,449,000	41,236,000
Total Non Current Liabilities Net Minority Interest	16,912,000	18,010,000
Other Non Current Liabilities	232,000	181,000
Employee Benefits	1,081,000	1,084,000
Non Current Pension And Other Postretirement Benefit Plans	1,028,000	1,084,000
Tradeand Other Payables Non Current	1,046,000	1,074,000
Non Current Deferred Liabilities	378,000	370,000
Non Current Deferred Revenue	28,000	30,000
Non Current Deferred Taxes Liabilities	350,000	340,000
Long Term Debt And Capital Lease Obligation	14,175,000	15,301,000
Long Term Capital Lease Obligation	633,000	641,000
Long Term Debt	13,542,000	14,660,000
Current Liabilities	24,537,000	23,226,000
Other Current Liabilities	20,177,000	19,027,000
Current Deferred Liabilities	348,000	259,000
Current Deferred Revenue	348,000	259,000
Current Debt And Capital Lease Obligation	1,299,000	770,000
Current Capital Lease Obligation	178,000	181,000
Current Debt	1,121,000	589,000
Other Current Borrowings	1,121,000	589,000
Payables And Accrued Expenses	2,713,000	3,170,000
Payables	2,713,000	3,170,000
Total Tax Payable	505,000	309,000
Accounts Payable	2,208,000	2,861,000
Total Assets	51,429,000	50,784,000
Total Non Current Assets	25,266,000	25,010,000
Other Non Current Assets	275,000	274,000
Defined Pension Benefit	598,000	603,000
Non Current Deferred Assets	946,000	956,000
Non Current Deferred Taxes Assets	737,000	748,000
Non Current Accounts Receivable	110,000	82,000
Investments And Advances	198,000	192,000
Goodwill And Other Intangible Assets	21,751,000	21,524,000
Other Intangible Assets	5,826,000	5,727,000
Goodwill	15,925,000	15,797,000
Net PPE	1,388,000	1,379,000
Accumulated Depreciation		-1,645,000	-1,509,000
Gross PPE	1,388,000	3,024,000
Leases		491,000	437,000
Construction In Progress		199,000	133,000
Other Properties	1,388,000	723,000
Machinery Furniture Equipment		1,611,000	1,549,000
Current Assets	26,163,000	25,774,000
Other Current Assets	213,000	190,000
Assets Held For Sale Current			1,000
Current Deferred Assets	325,000	450,000
Restricted Cash	8,286,000	7,378,000	17,566,000
Prepaid Assets	155,000	136,000
Receivables	15,768,000	14,822,000
Other Receivables	10,619,000	10,511,000
Taxes Receivable	60,000	102,000
Accounts Receivable	5,089,000	4,209,000
Allowance For Doubtful Accounts Receivable	-83,000	-74,000
Gross Accounts Receivable	5,172,000	4,283,000
Cash Cash Equivalents And Short Term Investments	1,416,000	2,798,000
Other Short Term Investments	238,000	1,603,000
Cash And Cash Equivalents	1,178,000	1,195,000
Cash Equivalents	1,178,000

Cash Flow

	2026	2025	2024
Free Cash Flow	363,000	1,323,000
Repurchase Of Capital Stock	-500,000	-250,000
Repayment Of Debt	-593,000	-1,150,000
Issuance Of Capital Stock	25,000	10,000
Capital Expenditure	-67,000	-74,000
Interest Paid Supplemental Data	271,000	107,000
Income Tax Paid Supplemental Data	120,000		203,000
End Cash Position	9,464,000	8,573,000
Beginning Cash Position	8,573,000	9,520,000
Effect Of Exchange Rate Changes	-97,000	72,000
Changes In Cash	988,000	-1,019,000
Financing Cash Flow	-441,000	-3,064,000
Cash Flow From Continuing Financing Activities	-441,000	-3,064,000
Net Other Financing Charges	789,000	-1,113,000
Cash Dividends Paid	-162,000	-161,000
Common Stock Dividend Paid	-162,000	-161,000
Net Common Stock Issuance	-475,000	-240,000
Common Stock Payments	-500,000	-250,000
Common Stock Issuance	25,000	10,000
Net Issuance Payments Of Debt	-593,000	-1,550,000
Net Short Term Debt Issuance	0	-400,000
Net Long Term Debt Issuance	-593,000	-1,150,000
Long Term Debt Payments	-593,000	-1,150,000
Investing Cash Flow	999,000	648,000
Cash Flow From Continuing Investing Activities	999,000	648,000
Net Investment Purchase And Sale	1,361,000	-1,397,000
Sale Of Investment	1,380,000	15,000
Purchase Of Investment	-19,000	-1,412,000
Net Business Purchase And Sale	-295,000	2,119,000
Sale Of Business	1,000	2,237,000
Purchase Of Business	-296,000	-118,000
Capital Expenditure Reported	-67,000	-74,000
Operating Cash Flow	430,000	1,397,000
Cash Flow From Continuing Operating Activities	430,000	1,397,000
Change In Working Capital	-1,021,000	522,000
Change In Other Working Capital	526,000	-7,000
Change In Other Current Liabilities	14,000	56,000
Change In Payables And Accrued Expense	-656,000	388,000
Change In Receivables	-905,000	85,000
Other Non Cash Items	1,000	-17,000
Stock Based Compensation	82,000	60,000
Deferred Tax	-49,000	95,000
Deferred Income Tax	-49,000	95,000
Depreciation Amortization Depletion	198,000	233,000
Depreciation And Amortization	198,000	233,000
Amortization Cash Flow	152,000	185,000
Amortization Of Intangibles	152,000	185,000
Depreciation	46,000	48,000
Operating Gains Losses	-20,000	-1,200,000	-4,000
Gain Loss On Sale Of Business	-20,000	-1,200,000
Net Income From Continuing Operations	1,239,000	1,704,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.7B ▲ $5.0B +6.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 52.4% ▲ 52.5% +0.0pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 38.2% ▲ 35.9% -2.3pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 20.4% ▲ 24.1% +3.7pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$5.0B/qtr (≈$20.1B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.07x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$363M

vs Positive

Operating Cash Flow

$430M

Latest quarter · Buffett's cash reality check

ROIC

5.3%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

6.8x

Net Assets: $10.0B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Insurance Brokers. You can manually compare AON against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

1.17%

Low — management has little skin in the game

Return on Equity (ROE)

12.3%

Adequate — returns are moderate

Return on Assets (ROA)

2.4%

Fair — average asset utilization

Share Buybacks (Latest Year)

$1.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-3.7% YoY

Debt is declining — management is deleveraging

Leadership Team

Gregory Clarence Case

President, CEO & Executive Director

Age 62

Pay: $4,972,698

0.410% of net income

Edmund Reese

Executive VP & Chief Financial Officer

Age 50

Pay: $3,379,666

0.279% of net income

Mindy Simon

Executive VP & Global Chief Operating Officer

Age 48

Pay: $2,914,264

0.240% of net income

Andrew Marcell

Executive VP & CEO of Global Solutions

Age 57

Pay: $2,379,197

0.196% of net income

Karen Kissam

Senior Vice President - H&B Local Practice Leader

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.56%	16,148,507
Vanguard Capital Management LLC	6.36%	13,581,756
Capital World Investors	5.37%	11,477,788
State Street Corporation	4.32%	9,219,773
Massachusetts Financial Services Co.	3.91%	8,358,097
Dodge & Cox Inc.	3.80%	8,116,095
Morgan Stanley	2.98%	6,374,945
JPMORGAN CHASE & CO	2.64%	5,641,431

Risk Analysis

Beta (Market Risk)

0.71

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.55x

Moderate leverage

Current Ratio

1.07x

Adequate liquidity

52-Week Price Range

Low: $304.59 Current: $317.74 High: $381.00

Currently at 17% of 52-week range

Aon plc

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis