ENXTAM:NN

Stock Analysis Report

Executive Summary

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands, rest of Europe, the United States, and Asia.

Snowflake

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has NN Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

NN

-0.9%

NL Insurance

-0.5%

NL Market


1 Year Return

-5.0%

NN

13.4%

NL Insurance

12.5%

NL Market

Return vs Industry: NN underperformed the Dutch Insurance industry which returned 13.4% over the past year.

Return vs Market: NN underperformed the Dutch Market which returned 12.5% over the past year.


Shareholder returns

NNIndustryMarket
7 Day-1.2%-0.9%-0.5%
30 Day5.1%0.8%1.7%
90 Day16.0%7.9%6.0%
1 Year0.9%-5.0%20.8%13.4%17.6%12.5%
3 Year35.2%16.0%43.3%22.3%44.9%28.5%
5 Year85.7%44.4%61.4%23.8%63.7%30.7%

Price Volatility Vs. Market

How volatile is NN Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NN Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NN (€35.24) is trading below our estimate of fair value (€82.86)

Significantly Below Fair Value: NN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NN is good value based on its PE Ratio (11.3x) compared to the Insurance industry average (12x).

PE vs Market: NN is good value based on its PE Ratio (11.3x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: NN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NN is good value based on its PB Ratio (0.3x) compared to the XE Insurance industry average (1.2x).


Next Steps

Future Growth

How is NN Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NN's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: NN's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: NN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NN's revenue is expected to decline over the next 3 years (-7.4% per year).

High Growth Revenue: NN's revenue is forecast to decline over the next 3 years (-7.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NN's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has NN Group performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NN has large one-off items impacting its financial results.

Growing Profit Margin: NN's current net profit margins (5%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: NN has become profitable over the past 5 years, growing earnings by 11.2% per year.

Accelerating Growth: NN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NN had negative earnings growth (-54.5%) over the past year, making it difficult to compare to the Insurance industry average (8.3%).


Return on Equity

High ROE: NN's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NN Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NN has a low level of unsold assets or inventory.

Debt Coverage by Assets: NN's debt is covered by short term assets (assets are 2.9x debt).


Financial Institutions Analysis

Asset Level: NN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NN has a sufficient allowance for bad loans.

Low Risk Liabilities: NN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NN has an appropriate level of bad loans.


Next Steps

Dividend

What is NN Group's current dividend yield, its reliability and sustainability?

5.68%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.1%markettop25%5.8%industryaverage4.7%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: NN's dividend (5.68%) is higher than the bottom 25% of dividend payers in the Dutch market (2.12%).

High Dividend: NN's dividend (5.68%) is low compared to the top 25% of dividend payers in the Dutch market (5.77%).


Stability and Growth of Payments

Stable Dividend: NN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64%), NN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NN's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).


Next Steps

Management

What is the CEO of NN Group's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

David Knibbe (48yo)

0.08yrs

Tenure

0

Dr. David E. Knibbe has been Chief Executive Officer and Chairman of the Executive Board at NN Group NV since October 1, 2019. Dr. Knibbe served as Member of Supervisory Board of Nationale-Nederlanden Bank ...


Management Age and Tenure

1.2yrs

Average Tenure

50yo

Average Age

Experienced Management: NN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: NN's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€11,07415 Mar 19
Delfin Arroyo
EntityIndividual
Role
Vice Chairman of Management Board
Vice Chairman of Executive Board & CFO
Shares288
Max Price€38.45
Sell€14,68815 Mar 19
E. Friese
EntityIndividual
Shares382
Max Price€38.45

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Delfin Arroyo (55yo)

    Vice Chairman of Management Board & CFO

    • Tenure: 5.3yrs
    • Compensation: €2.84m
  • Delfin Arroyo (55yo)

    Vice Chairman of Executive Board & CFO

    • Tenure: 5.3yrs
    • Compensation: €2.16m
  • David Knibbe (48yo)

    Chairman of Executive Board & CEO

    • Tenure: 0.08yrs
  • Satish S. Bapat (53yo)

    Member of Management Board & Interim CEO of NN Investment Partners

    • Tenure: 2.6yrs
  • Tjeerd Bosklopper (44yo)

    CEO Netherlands & Member of Management Board

    • Tenure: 1.2yrs
  • Fabian Rupprecht (50yo)

    CEO of International Insurance & Member of Management Board

    • Tenure: 1.2yrs
  • Jan-Hendrik Erasmus (39yo)

    Chief Risk Officer & Member of Management Board

    • Tenure: 3.2yrs
  • Karin de Jong

    Head of Investor Relations

    • Tenure: 0yrs
  • Dailah Nihot (46yo)

    Chief of Organisation and Corporate Relations & Member of Management Board

    • Tenure: 1.2yrs
  • Janet Stuijt (50yo)

    General Counsel

    • Tenure: 1.2yrs

Board Members

  • Rob Ruijter (68yo)

    Supervisory Board Member

    • Tenure: 2.4yrs
    • Compensation: €98.01k
  • Dick Harryvan (66yo)

    Supervisory Board Vice Chairman

    • Tenure: 3.8yrs
    • Compensation: €121.61k
  • David Cole (58yo)

    Chair of the Supervisory Board

    • Tenure: 0.5yrs
  • Robert Jenkins (68yo)

    Supervisory Board Member

    • Tenure: 3.8yrs
    • Compensation: €122.21k
  • Hélène Vletter-van Dort (55yo)

    Supervisory Board Member

    • Tenure: 4.1yrs
    • Compensation: €98.01k
  • Clara-Christina F. Streit (51yo)

    Supervisory Board Member

    • Tenure: 2.4yrs
    • Compensation: €117.37k
  • Heijo Gottfried Hauser (64yo)

    Supervisory Board Member

    • Tenure: 5.3yrs
    • Compensation: €136.73k
  • Hans Schoen (65yo)

    Supervisory Board Member

    • Tenure: 5.3yrs
    • Compensation: €102.85k

Company Information

NN Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NN Group N.V.
  • Ticker: NN
  • Exchange: ENXTAM
  • Founded: 2011
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: €11.805b
  • Shares outstanding: 334.99m
  • Website: https://www.nn-group.com

Number of Employees


Location

  • NN Group N.V.
  • Schenkkade 65
  • The Hague
  • Zuid-Holland
  • 2595 AS
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJul 2014
NNABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2014
2NNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
0QVVLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2014
NNGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014
NNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2014
NNGR.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDJan 2017

Biography

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands, rest of Europe, the United States, and Asia. The company operates through seven segments: Netherl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 21:30
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.