Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
66/100RyuScore 66 out of 100, Above average
66
Today's price. Only valuation depends on it.
-50%-40%-30%-20%-10%today+10%+20%+30%
Above average. Aon plc scores higher than 78% of the 1,794 companies Ryufin scores.
Carried by return on capital and return on new capital, held back by valuation and the balance sheet.
Financial Services median 58 · all companies 50
Valuation
26% of the score
43median 13
Aon plc is valued at 17.8x its operating profit before acquisition amortisation (EBITA), including debt: an ordinary multiple.
25x
20x
15x
10x
6x
17.8x
Full points at 6x or less, none from 25xfull points
Return on capital
18% of the score
83median 34
Over 7 years the business earned 16% a year after tax on the capital it uses.
2%
8%
15%
25%
16%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 13%
Return on new capital
16% of the score
87median 49
For every dollar of operating profit earned over 6 years, yearly profit grew by 10 cents. New capital earned 12%, and 81% of profit went back into the business.
-5%
12%
9.8%
None at minus 5 cents, full points from 12 centsfull points
Capital allocation
14% of the score
81median 64
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
Share countDown 1.4% a year over 5 years: buybacks
80
5%
-3%
-1.4%
0 pointsfull points
Assets against salesAssets grew 9.6% a year, sales 9.2%
83
12%
-2%
0.4%
0 pointsfull points
Cycle position
12% of the score
62median 62
Today's operating margin of 25% is 1.04x its normal 24%: close to its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
2x
1.5x
1x
0.7x
1x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 25%
Balance sheet
8% of the score
40median 50
What the debt weighs against the profit that has to carry it.
Net debt to EBITDA2.8x a year of EBITDA
44
4.5x
0.5x
2.8x
0 pointsfull points
Interest coverOperating profit covers interest 5x
37
1.5x
12x
5.3x
0 pointsfull points
Earnings quality
6% of the score
64median 90
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
Cash against profitOperating cash flow was 1.09x profit over 3 years
73
0.7x
1x
1.3x
1.1x
0 pointsfull points
AccrualsProfit ran ahead of cash by 0.5% of assets
56
8%
0%
-8%
0.5%
0 pointsfull points
How the RyuScore works
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.