HANNOVER RUECK SE (HNR1.DE) Stock Fundamental Analysis
FRA:HNR1 - Deutsche Boerse Ag - DE0008402215 - Common Stock - Currency: EUR
Taking everything into account, HNR1 scores 6 out of 10 in our fundamental rating. HNR1 was compared to 33 industry peers in the Insurance industry. While HNR1 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HNR1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HNR1 was profitable.
In the past year HNR1 had a positive cash flow from operations.
Each year in the past 5 years HNR1 has been profitable.
In the past 5 years HNR1 always reported a positive cash flow from operatings.
1.2 Ratios
HNR1's Return On Assets of 3.20% is amongst the best of the industry. HNR1 outperforms 86.11% of its industry peers.
HNR1 has a Return On Equity of 20.19%. This is amongst the best in the industry. HNR1 outperforms 86.11% of its industry peers.
HNR1's Return On Invested Capital of 3.25% is amongst the best of the industry. HNR1 outperforms 88.89% of its industry peers.
HNR1 had an Average Return On Invested Capital over the past 3 years of 2.13%. This is in line with the industry average of 2.25%.
The last Return On Invested Capital (3.25%) for HNR1 is above the 3 year average (2.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 20.19% | ||
| ROIC | 3.25% |
ROA(3y)2.15%
ROA(5y)1.9%
ROE(3y)14.64%
ROE(5y)12.83%
ROIC(3y)2.13%
ROIC(5y)1.91%
1.3 Margins
HNR1 has a better Profit Margin (72.08%) than 97.22% of its industry peers.
HNR1's Profit Margin has improved in the last couple of years.
HNR1 has a Operating Margin of 82.74%. This is amongst the best in the industry. HNR1 outperforms 100.00% of its industry peers.
HNR1's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 82.74% | ||
| PM (TTM) | 72.08% | ||
| GM | N/A |
OM growth 3Y169.43%
OM growth 5Y60.78%
PM growth 3Y169.56%
PM growth 5Y67.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HNR1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HNR1 has less shares outstanding
Compared to 5 years ago, HNR1 has less shares outstanding
The debt/assets ratio for HNR1 has been reduced compared to a year ago.
2.2 Solvency
HNR1 has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.77, HNR1 belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that HNR1 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, HNR1 is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.22 indicates that HNR1 may have some problems paying its short term obligations.
HNR1's Current ratio of 0.22 is fine compared to the rest of the industry. HNR1 outperforms 72.22% of its industry peers.
A Quick Ratio of 0.22 indicates that HNR1 may have some problems paying its short term obligations.
HNR1 has a better Quick ratio (0.22) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.33% over the past year.
HNR1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.45% yearly.
The Revenue for HNR1 has decreased by -71.97% in the past year. This is quite bad
HNR1 shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -33.55% yearly.
EPS 1Y (TTM)16.33%
EPS 3Y27.38%
EPS 5Y11.45%
EPS Q2Q%51.1%
Revenue 1Y (TTM)-71.97%
Revenue growth 3Y-52.75%
Revenue growth 5Y-33.55%
Sales Q2Q%8.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.60% on average over the next years. This is quite good.
HNR1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.28% yearly.
EPS Next Y32.02%
EPS Next 2Y18.14%
EPS Next 3Y14.28%
EPS Next 5Y11.6%
Revenue Next Year-11.06%
Revenue Next 2Y-2.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y0.28%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.28, the valuation of HNR1 can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HNR1 is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.35. HNR1 is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.62 indicates a correct valuation of HNR1.
Based on the Price/Forward Earnings ratio, HNR1 is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, HNR1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HNR1 is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HNR1's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HNR1 has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HNR1's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)0.45
PEG (5Y)1.25
EPS Next 2Y18.14%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
HNR1 has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.64, HNR1 is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, HNR1 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
The dividend of HNR1 has a limited annual growth rate of 3.20%.
Dividend Growth(5Y)3.2%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
HNR1 pays out 34.16% of its income as dividend. This is a sustainable payout ratio.
HNR1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.16%
EPS Next 2Y18.14%
EPS Next 3Y14.28%
FRA:HNR1 (3/7/2025, 7:00:00 PM)
266.5
+0.1 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners23.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.14B
Analysts73.33
Price Target274.89 (3.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend6.36
Dividend Growth(5Y)3.2%
DP34.16%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.01%
Min EPS beat(2)17.29%
Max EPS beat(2)18.73%
EPS beat(4)3
Avg EPS beat(4)8.71%
Min EPS beat(4)-7.6%
Max EPS beat(4)18.73%
EPS beat(8)5
Avg EPS beat(8)2.14%
EPS beat(12)6
Avg EPS beat(12)-2.44%
EPS beat(16)9
Avg EPS beat(16)228.71%
Revenue beat(2)2
Avg Revenue beat(2)1.77%
Min Revenue beat(2)1.69%
Max Revenue beat(2)1.84%
Revenue beat(4)3
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-6.03%
Max Revenue beat(4)1.84%
Revenue beat(8)4
Avg Revenue beat(8)-6.65%
Revenue beat(12)6
Avg Revenue beat(12)-10.76%
Revenue beat(16)7
Avg Revenue beat(16)-9.37%
PT rev (1m)0.3%
PT rev (3m)4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0.06%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.62 | ||
| P/S | 10.3 | ||
| P/FCF | 5.34 | ||
| P/OCF | 5.34 | ||
| P/B | 2.88 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)18.66
EY7%
EPS(NY)21.12
Fwd EY7.92%
FCF(TTM)49.91
FCFY18.73%
OCF(TTM)49.91
OCFY18.73%
SpS25.88
BVpS92.38
TBVpS91.72
PEG (NY)0.45
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 20.19% | ||
| ROCE | 3.7% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.52% | ||
| OM | 82.74% | ||
| PM (TTM) | 72.08% | ||
| GM | N/A | ||
| FCFM | 192.84% |
ROA(3y)2.15%
ROA(5y)1.9%
ROE(3y)14.64%
ROE(5y)12.83%
ROIC(3y)2.13%
ROIC(5y)1.91%
ROICexc(3y)2.17%
ROICexc(5y)1.94%
ROICexgc(3y)2.39%
ROICexgc(5y)2.24%
ROCE(3y)2.42%
ROCE(5y)2.17%
ROICexcg growth 3Y23.79%
ROICexcg growth 5Y1.84%
ROICexc growth 3Y30.63%
ROICexc growth 5Y6.2%
OM growth 3Y169.43%
OM growth 5Y60.78%
PM growth 3Y169.56%
PM growth 5Y67.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.71 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 267.53% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | N/A |
F-Score7
WACC7.16%
ROIC/WACC0.45
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)361.81%
Profit Quality(5y)324.54%
High Growth Momentum
Growth
EPS 1Y (TTM)16.33%
EPS 3Y27.38%
EPS 5Y11.45%
EPS Q2Q%51.1%
EPS Next Y32.02%
EPS Next 2Y18.14%
EPS Next 3Y14.28%
EPS Next 5Y11.6%
Revenue 1Y (TTM)-71.97%
Revenue growth 3Y-52.75%
Revenue growth 5Y-33.55%
Sales Q2Q%8.68%
Revenue Next Year-11.06%
Revenue Next 2Y-2.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y0.28%
EBIT growth 1Y-3.55%
EBIT growth 3Y27.32%
EBIT growth 5Y6.84%
EBIT Next Year43.64%
EBIT Next 3Y18.32%
EBIT Next 5YN/A
FCF growth 1Y33.24%
FCF growth 3Y24.22%
FCF growth 5Y21.06%
OCF growth 1Y33.24%
OCF growth 3Y24.22%
OCF growth 5Y21.06%