NN GROUP NV (NN.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:NN - NL0010773842 - Common Stock
65.68 EUR
+0.4 (+0.61%)
Overall NN gets a fundamental rating of 4 out of 10. We evaluated NN against 48 industry peers in the Insurance industry. Both the profitability and the financial health of NN get a neutral evaluation. Nothing too spectacular is happening here. NN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- NN had positive earnings in the past year.
- In the past year NN had a positive cash flow from operations.
- NN had positive earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: NN reported negative operating cash flow in multiple years.
1.2 Ratios
- NN has a Return On Assets of 0.61%. This is in the lower half of the industry: NN underperforms 72.92% of its industry peers.
- NN has a worse Return On Equity (5.84%) than 85.42% of its industry peers.
- The Return On Invested Capital of NN (0.43%) is worse than 60.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NN is below the industry average of 2.74%.
- The 3 year average ROIC (0.31%) for NN is below the current ROIC(0.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 5.84% | ||
| ROIC | 0.43% |
ROA(3y)0.67%
ROA(5y)0.8%
ROE(3y)6.62%
ROE(5y)6.79%
ROIC(3y)0.31%
ROIC(5y)0.56%
1.3 Margins
- NN has a Profit Margin of 9.91%. This is in the better half of the industry: NN outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of NN has grown nicely.
- NN has a Operating Margin (8.71%) which is comparable to the rest of the industry.
- NN's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.71% | ||
| PM (TTM) | 9.91% | ||
| GM | N/A |
OM growth 3Y-1.79%
OM growth 5Y0.69%
PM growth 3Y-3.58%
PM growth 5Y9.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- NN 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, NN has less shares outstanding
- NN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NN has an improved debt to assets ratio.
2.2 Solvency
- NN has an Altman-Z score of 0.13. This is a bad value and indicates that NN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of NN (0.13) is better than 77.08% of its industry peers.
- The Debt to FCF ratio of NN is 70.44, which is on the high side as it means it would take NN, 70.44 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 70.44, NN is doing worse than 79.17% of the companies in the same industry.
- NN has a Debt/Equity ratio of 0.62. This is a neutral value indicating NN is somewhat dependend on debt financing.
- The Debt to Equity ratio of NN (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 70.44 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.05
WACC7.95%
2.3 Liquidity
- A Current Ratio of 2.16 indicates that NN has no problem at all paying its short term obligations.
- NN has a Current ratio of 2.16. This is amongst the best in the industry. NN outperforms 93.75% of its industry peers.
- A Quick Ratio of 2.16 indicates that NN has no problem at all paying its short term obligations.
- NN has a Quick ratio of 2.16. This is amongst the best in the industry. NN outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.68% over the past year.
- Measured over the past years, NN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.60% on average per year.
- NN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.39%.
- The Revenue for NN have been decreasing by -12.53% on average. This is quite bad
EPS 1Y (TTM)10.68%
EPS 3Y-18.75%
EPS 5Y-0.6%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y-19.29%
Revenue growth 5Y-12.53%
Sales Q2Q%6.55%
3.2 Future
- NN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
- NN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.
EPS Next Y-2.92%
EPS Next 2Y11.89%
EPS Next 3Y9.86%
EPS Next 5Y6.03%
Revenue Next Year0.22%
Revenue Next 2Y1.88%
Revenue Next 3Y2.5%
Revenue Next 5Y2.1%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- NN is valuated correctly with a Price/Earnings ratio of 13.97.
- Compared to the rest of the industry, the Price/Earnings ratio of NN is on the same level as its industry peers.
- NN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- NN is valuated reasonably with a Price/Forward Earnings ratio of 8.14.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NN indicates a rather cheap valuation: NN is cheaper than 83.33% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. NN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
- NN's Enterprise Value to EBITDA is on the same level as the industry average.
- 79.17% of the companies in the same industry are cheaper than NN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.48 | ||
| EV/EBITDA | 18.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.89%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.43%, NN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.17, NN pays a bit more dividend than its industry peers.
- NN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
- The dividend of NN is nicely growing with an annual growth rate of 15.91%!
Dividend Growth(5Y)15.91%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- NN pays out 73.42% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of NN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.42%
EPS Next 2Y11.89%
EPS Next 3Y9.86%
NN GROUP NV / NN.AS FAQ
Can you provide the ChartMill fundamental rating for NN GROUP NV?
ChartMill assigns a fundamental rating of 4 / 10 to NN.AS.
Can you provide the valuation status for NN GROUP NV?
ChartMill assigns a valuation rating of 4 / 10 to NN GROUP NV (NN.AS). This can be considered as Fairly Valued.
What is the profitability of NN stock?
NN GROUP NV (NN.AS) has a profitability rating of 4 / 10.
What is the expected EPS growth for NN GROUP NV (NN.AS) stock?
The Earnings per Share (EPS) of NN GROUP NV (NN.AS) is expected to decline by -2.92% in the next year.
Is the dividend of NN GROUP NV sustainable?
The dividend rating of NN GROUP NV (NN.AS) is 6 / 10 and the dividend payout ratio is 73.42%.