Aon Plc Stock Return On Equity
AON Stock | USD 386.21 3.59 0.94% |
Aon PLC fundamentals help investors to digest information that contributes to Aon PLC's financial success or failures. It also enables traders to predict the movement of Aon Stock. The fundamental analysis module provides a way to measure Aon PLC's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Aon PLC stock.
Last Reported | Projected for Next Year | ||
Return On Equity | (3.10) | (2.95) |
Aon | Return On Equity |
Aon PLC Company Return On Equity Analysis
Aon PLC's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Aon PLC Return On Equity | 0.82 |
Most of Aon PLC's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Aon PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Aon Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Aon PLC is extremely important. It helps to project a fair market value of Aon Stock properly, considering its historical fundamentals such as Return On Equity. Since Aon PLC's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Aon PLC's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Aon PLC's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition |
Aon Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Aon PLC has a Return On Equity of 0.8218. This is 43.32% lower than that of the Insurance sector and 94.99% lower than that of the Financials industry. The return on equity for all United States stocks is notably lower than that of the firm.
Aon Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Aon PLC's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Aon PLC could also be used in its relative valuation, which is a method of valuing Aon PLC by comparing valuation metrics of similar companies.Aon PLC is currently under evaluation in return on equity category among its peers.
Aon PLC ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Aon PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Aon PLC's managers, analysts, and investors.Environmental | Governance | Social |
Aon Fundamentals
Return On Equity | 0.82 | ||||
Return On Asset | 0.0568 | ||||
Profit Margin | 0.16 % | ||||
Operating Margin | 0.19 % | ||||
Current Valuation | 100.23 B | ||||
Shares Outstanding | 216.27 M | ||||
Shares Owned By Insiders | 3.02 % | ||||
Shares Owned By Institutions | 88.50 % | ||||
Number Of Shares Shorted | 4.69 M | ||||
Price To Earning | 23.60 X | ||||
Price To Book | 13.38 X | ||||
Price To Sales | 5.60 X | ||||
Revenue | 13.38 B | ||||
Gross Profit | 5.82 B | ||||
EBITDA | 3.79 B | ||||
Net Income | 2.56 B | ||||
Cash And Equivalents | 690 M | ||||
Cash Per Share | 3.86 X | ||||
Total Debt | 12.03 B | ||||
Current Ratio | 1.03 X | ||||
Book Value Per Share | 28.84 X | ||||
Cash Flow From Operations | 3.44 B | ||||
Short Ratio | 4.75 X | ||||
Earnings Per Share | 11.66 X | ||||
Price To Earnings To Growth | 1.82 X | ||||
Target Price | 386.67 | ||||
Number Of Employees | 50 K | ||||
Beta | 0.91 | ||||
Market Capitalization | 83.52 B | ||||
Total Asset | 33.96 B | ||||
Retained Earnings | (3.4 B) | ||||
Working Capital | 53 M | ||||
Current Asset | 13.97 B | ||||
Current Liabilities | 13.09 B | ||||
Annual Yield | 0.01 % | ||||
Five Year Return | 0.87 % | ||||
Net Asset | 33.96 B | ||||
Last Dividend Paid | 2.58 |
About Aon PLC Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Aon PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aon PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aon PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Aon PLC
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Aon PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aon PLC will appreciate offsetting losses from the drop in the long position's value.Moving together with Aon Stock
Moving against Aon Stock
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The ability to find closely correlated positions to Aon PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aon PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aon PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aon PLC to buy it.
The correlation of Aon PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aon PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aon PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Aon PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Aon PLC Piotroski F Score and Aon PLC Altman Z Score analysis. To learn how to invest in Aon Stock, please use our How to Invest in Aon PLC guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aon PLC. If investors know Aon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aon PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.30) | Dividend Share 2.58 | Earnings Share 11.66 | Revenue Per Share 71.993 | Quarterly Revenue Growth 0.26 |
The market value of Aon PLC is measured differently than its book value, which is the value of Aon that is recorded on the company's balance sheet. Investors also form their own opinion of Aon PLC's value that differs from its market value or its book value, called intrinsic value, which is Aon PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aon PLC's market value can be influenced by many factors that don't directly affect Aon PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aon PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aon PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aon PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.