AON FCF Yield Analysis
Higher than 35% of Financial Services sector peers
Updated 2891h ago·SEC filings & market data
Key Takeaway
Aon’s current FCF Yield of 4.2% means that for every dollar of its stock price, the company generated roughly 4.2 cents in free cash flow over the past year—free cash flow being the cash left after operating expenses and capital expenditures.
Sector Performance
35th percentileAON
4.2%
Sector Median
6.2%
Sector Avg
4.9%
Deep Analysis
Aon’s current FCF Yield of 4.2% means that for every dollar of its stock price, the company generated roughly 4.2 cents in free cash flow over the past year—free cash flow being the cash left after operating expenses and capital expenditures.
This yield sits below the sector median of 6.4% for Financial Services, placing Aon in the 27th percentile among its peers, indicating lower cash return relative to price than most competitors. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the direction over the last eight quarters is not provided. The combination of a below-median yield and absent trend data suggests limited immediate evidence of improving cash generation, which could imply a modest risk that the stock is not cheap on a cash-flow basis. However, the yield is not extremely low, and without a trend, the metric alone provides no strong signal of opportunity or danger. This supports the overall NEUTRAL verdict, as the FCF Yield is below average but not alarming, and the lack of historical movement leaves the picture inconclusive.
Frequently Asked Questions
What does the FCF Yield tell investors about AON?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does AON's FCF Yield compare to its sector?
AON's FCF Yield of 4.2% compares to a Financial Services sector median of 6.2%, placing it in the 35th percentile.
Who are AON's closest peers by FCF Yield?
The closest Financial Services peers by FCF Yield include: AMP (6.2%), ARES (6.1%), RJF (6.6%), AIG (6.9%), AFL (4.4%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master AON's Valuation
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4.2%
Sector Median
6.2%
Sector Avg
4.9%
How AON's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.