NN Group Stock Analysis and Investment Prospects

NN Group is a leading insurance and banking company with a rich history dating back to 1991. The company operates in several countries, including the Netherlands, Belgium, and Switzerland.

NN Group's business model is built around its two main operating segments: Insurance and Banking. The Insurance segment provides life and non-life insurance products to individuals and businesses, while the Banking segment offers a range of financial services.

NN Group has a strong track record of financial performance, with a consistent increase in revenue and profit over the years. In 2020, the company's revenue reached €13.4 billion, a 5% increase from the previous year.

The company's focus on innovation and digitalization has enabled it to expand its customer base and improve operational efficiency.

NN Group is a financial services company that provides life and non-life insurance products in the Netherlands and internationally.

The company's fundamental analysis reveals a mixed picture, with a Snowflake Score of 5/6 for valuation, indicating that the stock is trading at 62.8% below its estimated fair value.

In terms of future growth, NN Group's forecast shows earnings are expected to grow 8.47% per year.

Past performance is also a strong aspect, with a Snowflake Score of 4/6, indicating a solid track record.

Financial health is a concern, with a Snowflake Score of 3/6, suggesting some areas for improvement.

Dividends are a bright spot, with a Snowflake Score of 4/6, indicating a relatively stable dividend payout.

Here's a breakdown of NN Group's Snowflake Score:

In the nn group stock, a key concern is the risk analysis, which highlights some areas that may impact the company's financial health.

The dividend of 7.83% is not well covered by free cash flows, indicating that the company may struggle to maintain its dividend payments.

This discrepancy suggests that nn group's financial situation might be more fragile than it appears.

The company's ability to generate sufficient free cash flows to support its dividend payments is a crucial aspect of its financial stability.

The nn group's financial situation may be more complex than initially thought, and investors should carefully consider this risk factor.

NN Group's revenue in 2024 was 6.90 billion, a significant decrease of -32.77% compared to the previous year.

This substantial drop in revenue is a notable trend in the company's financial performance.

Earnings were 1.52 billion, a notable increase of 35.33% from the previous year.

NN Group's valuation metrics are quite interesting, with a price to earnings (TTM) ratio of 1.12, indicating that the stock is trading at a relatively low multiple compared to its earnings.

The company's price to revenue (TTM) ratio is also low, at 1.12, suggesting that the stock is undervalued based on its revenue growth.

NN Group's dividend yield is a whopping 7.83%, making it an attractive option for income investors.

Despite the low valuation, NN Group's growth metrics are a bit concerning, with a 3-year revenue growth (CAGR) of -17.11% and a 3-year earnings per share growth (CAGR) of -20.97%.

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In the world of finance, it's essential to understand what analysts think the future holds for a company's stock price. According to Wall Street analysts, the average 1-year price target for NN Group NV is a significant €50.98.

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This is a substantial prediction, considering the company's current share price is €42.90. The analysts' forecast is not a guarantee, but it does give us a sense of their confidence in the company's growth prospects.

The price target range is quite broad, spanning from a low of €41.01 to a high of €60.90. This range reflects the varying opinions among analysts, but it also highlights the potential for significant growth in the coming year.

Here's a summary of the analysts' predictions in a table:

Keep in mind that these predictions are based on the company's historical performance and the analysts' expectations for the future. While they can be a useful guide, it's essential to remember that the stock market can be unpredictable.

The intrinsic value of a stock is a crucial concept to understand when evaluating its potential for growth. The intrinsic value of NN Group NV stock under the Base Case scenario is 103.65EUR.

This value is significantly higher than the current market price of 47.45 EUR, indicating that NN Group NV is undervalued by 54%. This discrepancy suggests that the stock may offer a buying opportunity for investors.

The intrinsic value is calculated as the average of DCF (Discounted Cash Flow) and Relative values. This calculation provides a comprehensive view of the stock's value, taking into account both its financial performance and market comparison.

Here's a breakdown of the intrinsic value calculation for NN Group NV:

This calculation highlights the potential for NN Group NV to grow in value, making it an attractive investment opportunity for those looking for long-term growth.

NN Group's revenue has seen a significant increase, with a 29.78% change in revenue from the last 12 months.

The company's European business is consistently growing, according to NN Group CEO David Knibbe.

Over the past three years, NN Group's revenue has actually decreased, with a 3-year revenue growth (CAGR) of -17.11%.

NN Group's earnings per share have also declined, with a 3-year earnings per share growth (CAGR) of -20.97%.

On the other hand, NN Group's dividend per share has shown steady growth, with a 3-year dividend per share growth (CAGR) of 11.87%.

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The GF Value Rank is a crucial metric to understand when evaluating a company's valuation. It's a way to gauge whether a stock is undervalued or overvalued compared to its intrinsic value.

Looking at the GF Value Rank, we see that the PE Ratio is 10.14, which is a relatively low number. This suggests that the stock may be undervalued compared to its earnings.

The Forward PE Ratio is even lower, at 6.46, indicating that the market is expecting strong earnings growth in the future. This could be a sign that the stock is undervalued and poised for growth.

The Shiller PE Ratio is 7.35, which is also relatively low. This metric takes into account the historical earnings of the company, providing a more comprehensive view of its valuation.

Here's a breakdown of the key valuation metrics:

These metrics suggest that the stock may be undervalued, but it's essential to consider other factors, such as the company's growth prospects and industry trends, to make a well-informed investment decision.

NN Group stock offers a well-covered 7.5% dividend yield, which is a significant attraction for income-seeking investors.

Trading at a low valuation, NN Group presents a compelling investment opportunity.

NN Group has a strong financial position, enabling them to return lots of cash to shareholders.

The company's dividend growth potential is solid, making it an excellent investment for those looking for long-term returns.

As of January 27, 2025, the dividend rate is €3.36 and the yield is 7.83%, which is a clear indication of the company's commitment to rewarding shareholders.

The payout ratio of 45.3% on a trailing twelve-month basis suggests that NN Group's dividend is well-covered and sustainable.

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NN Group's commercial performance was a key driver of its successful quarter, according to CEO David Knibbe. He credited strong commercial growth for the insurer's half-year results.

The Dutch insurer's focus on commercial growth has clearly paid off, with significant gains in this area contributing to its overall success.

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NN's price has been relatively stable in the past 3 months, with an average weekly movement of 2.0%, which is lower than the Dutch market's average of 3.9%.

This stability is a positive sign for investors, as it indicates that NN's share price is less prone to sudden fluctuations.

NN's weekly volatility has been stable over the past year, with an average movement of 2%. This consistency is a good indicator of the company's financial health.

Here's a comparison of NN's volatility with its peers and the market:

NN's stable share price is a testament to the company's solid financial foundation and ability to manage risks effectively.

NN Group's commercial growth has been a significant driver of their success in recent quarters. The company's revenue change over the past 12 months has been a notable 29.78%. This growth is a testament to the company's ability to adapt and thrive in a competitive market.

David Knibbe, NN Group's CEO, has highlighted the importance of commercial growth in their half-year results. He attributes the company's success to a strong commercial drive. The company's revenue was 6.90 billion in 2024, a decrease of 32.77% compared to the previous year's 10.26 billion.

Despite this decrease in revenue, NN Group's earnings were 1.52 billion, an increase of 35.33%. This suggests that the company has been able to maintain profitability despite a decline in revenue. The company's dividend per share growth has been 11.87% over the past three years, indicating a commitment to shareholder value.

NN Group's European business is consistently growing, as stated by CEO David Knibbe.

This growth is a testament to the company's strong presence and reputation in the region.

The nn group stock has shown steady growth over the years, with a compound annual growth rate (CAGR) of 15% since its inception.

This growth can be attributed to the company's focus on innovation and expansion into new markets.

nn group's diversification into various business segments, including engineering, IT, and logistics, has helped reduce its dependence on a single revenue stream.

As a result, the company's revenue has become more stable and predictable.