Patamaporn Umnahanant/E+ via Getty Images Investment Thesis Aon plc ( NYSE: AON ) continues to be a free cash flow machine, generating over $3 billion as of the last TTM. Cash flows continue to be resilient and have steadily grown since 2020, but I believe the stock is rather expensive at the current price. I don't believe the future growth of free cash flows is enough to justify anything over $300 per share, so I believe the shares are already fairly valued and should be held.
The business has spectacular margins and fundamentals, but going forward I don't expect that much improvement and believe Aon has reached its full potential, and shares will perform in-line with the broader market. Company Overview The company operates as a "leading global professional services firm providing a broad range of risk and human capital solutions" according to their annual report . Clients choose Aon for their professional services which help them manage risk and grow their workforce intelligently.
Their annual report says they provide these risk and human capital solutions through four solution lines "Commercial Risk, Reinsurance, Health, and Wealth". Commercial Risk solutions refer to "retail brokerage, specialty solutions, global risk consulting and captives management, and Affinity programs". Basically, these programs help analyze and provide clients with unique insights that help them manage risk in their businesses.
Whether its buying insurance or assessing business continuity risks, .
