ENXTAM:NN

Stock Analysis Report

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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 Analysis

Undervalued with solid track record and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

NN

-1.1%

NL Insurance

0.7%

NL Market


1 Year Return

-10.2%

NN

-18.3%

NL Insurance

-10.6%

NL Market

Return vs Industry: NN exceeded the Dutch Insurance industry which returned -18.5% over the past year.

Return vs Market: NN exceeded the Dutch Market which returned -11.8% over the past year.


Shareholder returns

NNIndustryMarket
7 Day1.1%-1.1%0.7%
30 Day6.1%2.8%6.5%
90 Day30.8%9.8%14.4%
1 Year-7.9%-10.2%-13.6%-18.3%-7.8%-10.6%
3 Year8.3%-4.3%1.7%-12.7%8.5%-2.6%
5 Year45.4%15.7%18.3%-8.3%25.7%2.2%

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 (€31.95) is trading below our estimate of fair value (€70.13)

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 (5.5x) compared to the XE Insurance industry average (9.6x).

PE vs Market: NN is good value based on its PE Ratio (5.5x) compared to the Dutch market (16.7x).


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 (1x).


Next Steps

Future Growth

How is NN Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-3.0%

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% per year).

Earnings vs Market: NN's earnings are forecast to decline over the next 3 years (-3% 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 (-6.6% per year).

High Growth Revenue: NN's revenue is forecast to decline over the next 3 years (-6.6% 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 (6%).


Next Steps

Past Performance

How has NN Group performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NN has high quality earnings.

Growing Profit Margin: NN's current net profit margins (9.4%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: NN's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: NN's earnings growth over the past year (79.7%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: NN earnings growth over the past year (79.7%) exceeded the Insurance industry 10%.


Return on Equity

High ROE: NN's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is NN Group's financial position?


Financial Position Analysis

Short Term Liabilities: NN's short term assets (€22.7B) do not cover its short term liabilities (€27.2B).

Long Term Liabilities: NN's short term assets (€22.7B) do not cover its long term liabilities (€188.6B).


Debt to Equity History and Analysis

Debt Level: NN's debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: NN's debt to equity ratio has reduced from 38.1% to 36.6% over the past 5 years.

Debt Coverage: NN's debt is well covered by operating cash flow (22.9%).

Interest Coverage: NN's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NN's dividend (6.76%) is higher than the bottom 25% of dividend payers in the Dutch market (2.21%).

High Dividend: NN's dividend (6.76%) is in the top 25% of dividend payers in the Dutch market (6.43%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.5%), NN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NN's dividends in 3 years are forecast to be covered by earnings (52.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

David Knibbe (49yo)

0.75

Tenure

€2,006,000

Compensation

Dr. David E. Knibbe has been Chairman of the Executive Board at NN Group NV since October 1, 2019. And served as its Chief Executive Officer since October 1, 2019 until Npvember 2019. Dr. Knibbe was Chief  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.28M) is below average for companies of similar size in the Dutch market ($USD4.93M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Knibbe
Chairman of Executive Board & CEO0.75yr€2.01m0.0090% 924.0k
D. Rueda Arroyo
Vice Chairman of Management Board & CFO6.33yrsno datano data
Tjeerd Bosklopper
CEO of Netherlands Non-life1.83yrsno datano data
Satish S. Bapat
Member of Management Board3.25yrsno datano data
Dailah Nihot
Chief of Organization & Corporate Relations and Member of Management Board1.83yrsno datano data
Fabian Rupprecht
CEO of International Insurance & Member of Management Board1.83yrsno datano data
J.L. Stuijt
General Counsel1.83yrsno datano data
Bernhard Kaufmann
Chief Risk Officer & Member of the Management Board0.083yrno datano data
Leon M. Riet
CEO of Netherlands Life & Pensions and Member of the Management Board0.083yrno datano data
Jelmer Lantinga
Head of Investor Relationsno datano datano data
Jan Van Autreve
Chief Executive Officer of NN Belgium4yrsno datano data
Pieter C. A. Emmen
Chief Risk Officer of Bank Business Unit1.5yrsno datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: NN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Cole
Chair of the Supervisory Board1.17yrs€158.81kno data
Robert Jenkins
Independent Supervisory Board Member4.42yrs€122.21kno data
Hélène Vletter-van Dort
Independent Vice-Chair of the Supervisory Board4.75yrs€102.95kno data
Clara-Christina F. Streit
Independent Supervisory Board Member3.08yrs€122.21kno data
Heinz-Josef Gottfried Hauser
Supervisory Board Member6yrs€131.89kno data
Johannes Schoen
Supervisory Board Member6yrs€102.85kno data

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: NN's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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: €10.233b
  • Shares outstanding: 320.27m
  • 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
2NNETLX (Eurotlx)YesOrdinary SharesITEURJul 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: Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Asset Management, Banking, and Other. It offers group and individual life insurance, and pension products; non-life insurance products, including motor, fire, liability, transport, travel, and disability and accident insurance; health insurance products; corporate-owned life insurance products; and single premium variable annuity individual life insurance products. The company also provides various asset management products; advisory services; banking services, including mortgage loans, savings products, bank annuities, consumer lending, and retail investment products; mortgage administration and management services; and reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, large corporations, retail customers, and institutional customers directly, as well as through agents, securities houses, and banks. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014 as a result of its merger with ING Verzekeringen N.V. NN Group N.V. was incorporated in 2011 and is headquartered in The Hague, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 20:52
End of Day Share Price2020/07/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.