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NN GROUP NV (NN.AS) Stock Fundamental Analysis

AMS:NN - Euronext Amsterdam - NL0010773842 - Common Stock - Currency: EUR

42.965  -0.14 (-0.34%)

Fundamental Rating

5

NN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Insurance industry. The financial health of NN is average, but there are quite some concerns on its profitability. NN is not valued too expensively and it also shows a decent growth rate. NN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

NN had positive earnings in the past year.
NN had a negative operating cash flow in the past year.
In the past 5 years NN has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: NN reported negative operating cash flow in multiple years.
NN.AS Yearly Net Income VS EBIT VS OCF VS FCFNN.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

1.2 Ratios

NN has a worse Return On Assets (0.57%) than 76.67% of its industry peers.
The Return On Equity of NN (5.51%) is worse than 83.33% of its industry peers.
NN has a worse Return On Invested Capital (0.27%) than 76.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NN is in line with the industry average of 2.08%.
Industry RankSector Rank
ROA 0.57%
ROE 5.51%
ROIC 0.27%
ROA(3y)0.86%
ROA(5y)0.81%
ROE(3y)7.37%
ROE(5y)6.55%
ROIC(3y)0.43%
ROIC(5y)0.62%
NN.AS Yearly ROA, ROE, ROICNN.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

1.3 Margins

Looking at the Profit Margin, with a value of 9.26%, NN is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
NN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.44%, NN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NN has declined.
Industry RankSector Rank
OM 5.44%
PM (TTM) 9.26%
GM N/A
OM growth 3Y-19.44%
OM growth 5Y-10.55%
PM growth 3Y1.96%
PM growth 5Y8.52%
GM growth 3YN/A
GM growth 5YN/A
NN.AS Yearly Profit, Operating, Gross MarginsNN.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NN is destroying value.
NN has less shares outstanding than it did 1 year ago.
NN has less shares outstanding than it did 5 years ago.
NN has a better debt/assets ratio than last year.
NN.AS Yearly Shares OutstandingNN.AS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
NN.AS Yearly Total Debt VS Total AssetsNN.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B 200B 250B

2.2 Solvency

NN has an Altman-Z score of 0.11. This is a bad value and indicates that NN is not financially healthy and even has some risk of bankruptcy.
NN has a better Altman-Z score (0.11) than 76.67% of its industry peers.
NN has a Debt/Equity ratio of 0.58. This is a neutral value indicating NN is somewhat dependend on debt financing.
NN's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. NN outperforms 53.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Altman-Z 0.11
ROIC/WACC0.04
WACC6.35%
NN.AS Yearly LT Debt VS Equity VS FCFNN.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.87 indicates that NN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.87, NN belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
NN has a Quick Ratio of 1.87. This is a normal value and indicates that NN is financially healthy and should not expect problems in meeting its short term obligations.
NN has a better Quick ratio (1.87) than 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
NN.AS Yearly Current Assets VS Current LiabilitesNN.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 176.75% over the past year.
Measured over the past 5 years, NN shows a small growth in Earnings Per Share. The EPS has been growing by 5.10% on average per year.
The Revenue has grown by 18.39% in the past year. This is quite good.
Measured over the past years, NN shows a decrease in Revenue. The Revenue has been decreasing by -6.79% on average per year.
EPS 1Y (TTM)176.75%
EPS 3Y-11.66%
EPS 5Y5.1%
EPS Q2Q%9.92%
Revenue 1Y (TTM)18.39%
Revenue growth 3Y-16.93%
Revenue growth 5Y-6.79%
Sales Q2Q%3.98%

3.2 Future

Based on estimates for the next years, NN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.87% on average per year.
NN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.76% yearly.
EPS Next Y15%
EPS Next 2Y11.88%
EPS Next 3Y9.2%
EPS Next 5Y9.87%
Revenue Next Year-6.22%
Revenue Next 2Y-2.24%
Revenue Next 3Y-0.76%
Revenue Next 5Y0.76%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
NN.AS Yearly Revenue VS EstimatesNN.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
NN.AS Yearly EPS VS EstimatesNN.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.13, the valuation of NN can be described as very reasonable.
76.67% of the companies in the same industry are more expensive than NN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. NN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.22, the valuation of NN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NN indicates a rather cheap valuation: NN is cheaper than 93.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. NN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.13
Fwd PE 6.22
NN.AS Price Earnings VS Forward Price EarningsNN.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NN.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.18
NN.AS Per share dataNN.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

NN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.68
PEG (5Y)1.99
EPS Next 2Y11.88%
EPS Next 3Y9.2%

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8

5. Dividend

5.1 Amount

NN has a Yearly Dividend Yield of 7.59%, which is a nice return.
NN's Dividend Yield is rather good when compared to the industry average which is at 5.01. NN pays more dividend than 93.33% of the companies in the same industry.
NN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 7.59%

5.2 History

The dividend of NN has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr Years6
Div Non Decr Years6
NN.AS Yearly Dividends per shareNN.AS Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

NN pays out 43.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.43%
EPS Next 2Y11.88%
EPS Next 3Y9.2%
NN.AS Yearly Income VS Free CF VS DividendNN.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B
NN.AS Dividend Payout.NN.AS Dividend Payout, showing the Payout Ratio.NN.AS Dividend Payout.PayoutRetained Earnings

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NN GROUP NV

AMS:NN (2/5/2025, 2:53:39 PM)

42.965

-0.14 (-0.34%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)08-15 2024-08-15/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners48.45%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap12.25B
Analysts76.15
Price Target50.98 (18.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.59%
Yearly Dividend1.54
Dividend Growth(5Y)4.13%
DP43.43%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.73%
PT rev (3m)-1.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.74%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.54%
Revenue NY rev (3m)-4.54%
Valuation
Industry RankSector Rank
PE 10.13
Fwd PE 6.22
P/S 0.97
P/FCF N/A
P/OCF N/A
P/B 0.58
P/tB 0.62
EV/EBITDA 21.18
EPS(TTM)4.24
EY9.87%
EPS(NY)6.91
Fwd EY16.08%
FCF(TTM)-1.46
FCFYN/A
OCF(TTM)-1.31
OCFYN/A
SpS44.14
BVpS74.13
TBVpS69.73
PEG (NY)0.68
PEG (5Y)1.99
Profitability
Industry RankSector Rank
ROA 0.57%
ROE 5.51%
ROCE 0.34%
ROIC 0.27%
ROICexc 0.28%
ROICexgc 0.36%
OM 5.44%
PM (TTM) 9.26%
GM N/A
FCFM N/A
ROA(3y)0.86%
ROA(5y)0.81%
ROE(3y)7.37%
ROE(5y)6.55%
ROIC(3y)0.43%
ROIC(5y)0.62%
ROICexc(3y)0.44%
ROICexc(5y)0.64%
ROICexgc(3y)0.56%
ROICexgc(5y)0.83%
ROCE(3y)0.53%
ROCE(5y)0.77%
ROICexcg growth 3Y-28.33%
ROICexcg growth 5Y-14.58%
ROICexc growth 3Y-28.38%
ROICexc growth 5Y-15.42%
OM growth 3Y-19.44%
OM growth 5Y-10.55%
PM growth 3Y1.96%
PM growth 5Y8.52%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Debt/EBITDA 14.61
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 0.63
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.87
Quick Ratio 1.87
Altman-Z 0.11
F-Score6
WACC6.35%
ROIC/WACC0.04
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)176.75%
EPS 3Y-11.66%
EPS 5Y5.1%
EPS Q2Q%9.92%
EPS Next Y15%
EPS Next 2Y11.88%
EPS Next 3Y9.2%
EPS Next 5Y9.87%
Revenue 1Y (TTM)18.39%
Revenue growth 3Y-16.93%
Revenue growth 5Y-6.79%
Sales Q2Q%3.98%
Revenue Next Year-6.22%
Revenue Next 2Y-2.24%
Revenue Next 3Y-0.76%
Revenue Next 5Y0.76%
EBIT growth 1Y564.08%
EBIT growth 3Y-33.08%
EBIT growth 5Y-16.63%
EBIT Next Year-1.69%
EBIT Next 3Y-0.37%
EBIT Next 5YN/A
FCF growth 1Y94.88%
FCF growth 3Y-79.26%
FCF growth 5YN/A
OCF growth 1Y95.38%
OCF growth 3Y-79.31%
OCF growth 5YN/A