NN GROUP NV (NN.AS)

NL0010773842 - Common Stock

43.46  +0.7 (+1.64%)

Fundamental Rating

4

Overall NN gets a fundamental rating of 4 out of 10. We evaluated NN against 36 industry peers in the Insurance industry. While NN seems to be doing ok healthwise, there are quite some concerns on its profitability. NN has a correct valuation and a medium growth rate. Finally NN also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

NN had positive earnings in the past year.
NN had a positive operating cash flow in the past year.
Each year in the past 5 years NN has been profitable.
In multiple years NN reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of NN (0.54%) is worse than 71.43% of its industry peers.
NN has a worse Return On Equity (5.33%) than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.37%, NN is doing worse than 65.71% of the companies in the same industry.
NN had an Average Return On Invested Capital over the past 3 years of 0.43%. This is in line with the industry average of 2.00%.
Industry RankSector Rank
ROA 0.54%
ROE 5.33%
ROIC 0.37%
ROA(3y)0.86%
ROA(5y)0.81%
ROE(3y)7.37%
ROE(5y)6.55%
ROIC(3y)0.43%
ROIC(5y)0.62%

1.3 Margins

NN has a better Profit Margin (9.07%) than 62.86% of its industry peers.
NN's Profit Margin has improved in the last couple of years.
The Operating Margin of NN (7.73%) is worse than 65.71% of its industry peers.
In the last couple of years the Operating Margin of NN has declined.
Industry RankSector Rank
OM 7.73%
PM (TTM) 9.07%
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

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NN is destroying value.
The number of shares outstanding for NN has been reduced compared to 1 year ago.
The number of shares outstanding for NN has been reduced compared to 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 0.10. This is a bad value and indicates that NN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.10, NN is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
The Debt to FCF ratio of NN is 227.42, which is on the high side as it means it would take NN, 227.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NN (227.42) is worse than 74.29% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that NN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, NN is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 227.42
Altman-Z 0.1
ROIC/WACC0.06
WACC5.95%

2.3 Liquidity

NN has a Current Ratio of 1.12. This is a normal value and indicates that NN is financially healthy and should not expect problems in meeting its short term obligations.
NN's Current ratio of 1.12 is amongst the best of the industry. NN outperforms 94.29% of its industry peers.
NN has a Quick Ratio of 1.12. This is a normal value and indicates that NN is financially healthy and should not expect problems in meeting its short term obligations.
NN's Quick ratio of 1.12 is amongst the best of the industry. NN outperforms 94.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.12

4

3. Growth

3.1 Past

The earnings per share for NN have decreased strongly by -32.98% in the last 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 44.73% in the past year. This is a very strong growth!
The Revenue has been decreasing by -6.79% on average over the past years.
EPS 1Y (TTM)-32.98%
EPS 3Y-11.66%
EPS 5Y5.1%
EPS growth Q2Q530.6%
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-16.93%
Revenue growth 5Y-6.79%
Revenue growth Q2Q34.66%

3.2 Future

NN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.31% yearly.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y21.15%
EPS Next 2Y12.2%
EPS Next 3Y10.11%
EPS Next 5Y12.31%
Revenue Next Year1.32%
Revenue Next 2Y1.92%
Revenue Next 3Y3.84%
Revenue Next 5Y3.61%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.76, the valuation of NN can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as NN.
Compared to an average S&P500 Price/Earnings ratio of 24.75, NN is valued rather cheaply.
A Price/Forward Earnings ratio of 6.50 indicates a rather cheap valuation of NN.
Based on the Price/Forward Earnings ratio, NN is valued cheaper than 91.43% of the companies in the same industry.
NN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.23, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.76
Fwd PE 6.5

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NN indicates a somewhat cheap valuation: NN is cheaper than 68.57% of the companies listed in the same industry.
74.29% of the companies in the same industry are cheaper than NN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 191.97
EV/EBITDA 15.9

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.51
PEG (5Y)2.11
EPS Next 2Y12.2%
EPS Next 3Y10.11%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.50%, NN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.28, NN pays a better dividend. On top of this NN pays more dividend than 94.29% of the companies listed in the same industry.
NN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 7.5%

5.2 History

The dividend of NN has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr Years5
Div Non Decr Years5

5.3 Sustainability

NN pays out 38.18% of its income as dividend. This is a sustainable payout ratio.
NN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.18%
EPS Next 2Y12.2%
EPS Next 3Y10.11%

NN GROUP NV

AMS:NN (4/22/2024, 5:19:04 PM)

43.46

+0.7 (+1.64%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.90B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 7.5%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.76
Fwd PE 6.5
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.51
PEG (5Y)2.11
Profitability
Industry RankSector Rank
ROA 0.54%
ROE 5.33%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.73%
PM (TTM) 9.07%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.12
Quick Ratio 1.12
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-32.98%
EPS 3Y-11.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-16.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y