NN GROUP NV (NN.AS)
NL0010773842 - Common Stock
NN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Insurance industry. While NN seems to be doing ok healthwise, 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.
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.
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
With a Return On Assets value of 0.54%, NN is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
NN's Return On Equity of 5.33% is on the low side compared to the rest of the industry. NN is outperformed by 83.87% of its industry peers.
NN has a worse Return On Invested Capital (0.37%) than 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NN is in line with the industry average of 2.14%.
| Industry Rank | Sector 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 Profit Margin (9.07%) which is in line with its industry peers.
NN's Profit Margin has improved in the last couple of years.
NN has a Operating Margin of 7.73%. This is in the lower half of the industry: NN underperforms 74.19% of its industry peers.
NN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
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.
NN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.10, we must say that NN is in the distress zone and has some risk of bankruptcy.
NN has a better Altman-Z score (0.10) than 80.65% of its industry peers.
NN has a debt to FCF ratio of 227.42. This is a negative value and a sign of low solvency as NN would need 227.42 years to pay back of all of its debts.
NN's Debt to FCF ratio of 227.42 is on the low side compared to the rest of the industry. NN is outperformed by 70.97% of its industry peers.
NN has a Debt/Equity ratio of 0.67. This is a neutral value indicating NN is somewhat dependend on debt financing.
NN's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. NN is outperformed by 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 227.42 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.06
WACC6.16%
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.
With an excellent Current ratio value of 1.12, NN belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
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 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
NN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.98%.
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!
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)-32.98%
EPS 3Y-11.66%
EPS 5Y5.1%
EPS Q2Q%530.6%
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-16.93%
Revenue growth 5Y-6.79%
Sales Q2Q%34.66%
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 12.32% yearly.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y21.27%
EPS Next 2Y12.36%
EPS Next 3Y10.28%
EPS Next 5Y12.32%
Revenue Next Year-4.64%
Revenue Next 2Y-1.6%
Revenue Next 3Y0.43%
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.
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
A Price/Earnings ratio of 11.35 indicates a reasonable valuation of NN.
67.74% of the companies in the same industry are cheaper than NN, based on the Price/Earnings ratio.
NN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 6.85 indicates a rather cheap valuation of NN.
Based on the Price/Forward Earnings ratio, NN is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NN to the average of the S&P500 Index (20.59), we can say NN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NN is on the same level as its industry peers.
70.97% 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 | 202.61 | ||
| EV/EBITDA | 16.66 |
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)0.53
PEG (5Y)2.23
EPS Next 2Y12.36%
EPS Next 3Y10.28%
5. Dividend
5.1 Amount
NN has a Yearly Dividend Yield of 7.02%, which is a nice return.
Compared to an average industry Dividend Yield of 5.57, NN pays a better dividend. On top of this NN pays more dividend than 83.87% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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.
The dividend of NN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.18%
EPS Next 2Y12.36%
EPS Next 3Y10.28%
NN GROUP NV
AMS:NN (7/26/2024, 7:00:00 PM)
45.87
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 6.85 | ||
| 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)0.53
PEG (5Y)2.23
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-32.98%
EPS 3Y-11.66%
EPS 5Y
EPS Q2Q%
EPS Next Y21.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-16.93%
Revenue growth 5Y
Sales 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