NN GROUP NV (NN.AS)
NL0010773842 - Common Stock
Overall NN gets a fundamental rating of 4 out of 10. We evaluated NN against 36 industry peers in the Insurance industry. NN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NN has a correct valuation and a medium growth rate. Finally 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.
NN had positive earnings in each of the past 5 years.
In multiple years NN reported negative operating cash flow during the last 5 years.
1.2 Ratios
NN has a worse Return On Assets (0.54%) than 71.43% of its industry peers.
NN has a worse Return On Equity (5.33%) than 71.43% of its industry peers.
NN has a Return On Invested Capital of 0.37%. This is in the lower half of the industry: NN underperforms 65.71% 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 2.00%.
| 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 of 9.07%. This is in the better half of the industry: NN outperforms 62.86% of its industry peers.
NN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.73%, NN is doing worse than 65.71% of the companies in the same industry.
In the last couple of years the Operating Margin of NN has declined.
| 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.
The debt/assets ratio for NN has been reduced compared to a year ago.
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's Altman-Z score of 0.10 is fine compared to the rest of the industry. NN outperforms 74.29% 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 74.29% 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 has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: NN underperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 227.42 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.06
WACC5.93%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NN should not have too much problems paying 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.
A Quick Ratio of 1.12 indicates that NN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, NN belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for NN have decreased strongly by -32.98% in the last year.
NN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.10% yearly.
NN shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.73%.
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
Based on estimates for the next years, NN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.31% on average per year.
NN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
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.
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
The Price/Earnings ratio is 10.77, which indicates a very decent valuation of NN.
Compared to the rest of the industry, the Price/Earnings ratio of NN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NN to the average of the S&P500 Index (25.20), we can say NN is valued rather cheaply.
A Price/Forward Earnings ratio of 6.51 indicates a rather cheap valuation of NN.
85.71% of the companies in the same industry are more expensive than NN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, NN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NN is valued a bit cheaper than 68.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NN is valued a bit more expensive than the industry average as 74.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 192.23 | ||
| EV/EBITDA | 16.05 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.50%, NN is a good candidate for dividend investing.
NN's Dividend Yield is rather good when compared to the industry average which is at 5.28. NN pays more dividend than 91.43% of the companies in the same industry.
NN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector 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.
The dividend of NN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.18%
EPS Next 2Y12.2%
EPS Next 3Y10.11%
NN GROUP NV
AMS:NN (4/23/2024, 5:35:30 PM)
43.52
+0.15 (+0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 6.51 | ||
| 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 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)
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