Hannover Rueck (HNR1) AI Stock Analysis

• Market Cap: €32.27B
• Dividend Yield: 3.36%
• Average Volume (3M): 87.20K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.75
• Revenue Growth: 9.68%
• EPS Growth: 18.57%
• Country: DE
• Employees: 3,895
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Reinsurance
• EPS (TTM): 3.98
• Shares Outstanding: 120,597,140
• 10 Day Avg. Volume: 89,942
• 30 Day Avg. Volume: 87,199
• PEG Ratio: -4.25
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €293.27
• Price Target Upside: 9.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: €297.00 ▲(10.99%Upside)

Hannover Rueck's strong financial performance heavily influences its overall score, showcasing robust growth and stability. The valuation is reasonable, bolstered by an attractive dividend yield. However, technical analysis points to a slightly bearish trend, indicating potential short-term weakness. The lack of recent earnings call and corporate events data does not impact the score calculation.

Hannover Rueck Business Overview & Revenue Model

Company Description

Hannover Rück SE, commonly known as Hannover Re, is one of the world's leading reinsurance companies, headquartered in Hannover, Germany. Operating in the insurance sector, Hannover Re provides a comprehensive range of reinsurance services, including property and casualty reinsurance, life and health reinsurance, and specialty lines. The company serves clients globally, offering tailored reinsurance solutions that help insurance companies manage risks and enhance their financial stability.

How the Company Makes Money

Hannover Re generates revenue primarily through the underwriting of reinsurance policies and the investment of premium income. The company's key revenue streams include premiums received for reinsurance coverage, investment income from its substantial asset portfolio, and fees for providing various risk management and advisory services. Hannover Re's earnings are influenced by its ability to accurately assess and price risk, manage claims efficiently, and achieve favorable investment returns. Significant partnerships with primary insurers and a strong global presence further bolster its revenue by expanding its client base and market reach.

Hannover Rueck Financial Statement Overview

Summary

Hannover Rueck demonstrates strong financial performance with consistent revenue growth, efficient cost management, and robust cash generation. The balance sheet is solid with low leverage and strong equity, supporting financial stability. Cash flow generation is robust, providing a positive outlook for liquidity. Minor net income fluctuations slightly dampen profitability but overall financial health is strong.

Income Statement

Hannover Rueck's income statement shows strong performance with a consistent increase in revenue over the TTM period, indicating a solid growth trajectory. The gross profit margin is robust at 63.09%, reflecting efficient cost management. However, the slight decline in net income compared to the previous year slightly dampens the overall profitability. Net profit margin remains healthy at 9.10%, and the EBIT and EBITDA margins are strong at 12.75% and 13.05%, respectively.

Balance Sheet

The balance sheet of Hannover Rueck is solid with a healthy equity ratio of 16.65%, suggesting a strong capital structure. The debt-to-equity ratio is low at 0.38, indicating low financial leverage and risk. Return on Equity (ROE) is impressive at 18.63%, showcasing efficient utilization of shareholder funds. The company maintains substantial cash reserves, which enhances financial stability.

Cash Flow

Hannover Rueck's cash flow statement highlights robust free cash flow generation, with a healthy free cash flow to net income ratio of 2.53, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio is also strong at 2.53, reflecting effective cash conversion from operations. The consistent growth in free cash flow further supports a positive outlook for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.73B	26.46B	25.72B	24.16B	26.28B	23.17B
Gross Profit	15.60B	26.46B	25.72B	24.16B	26.28B	23.17B
EBITDA	3.23B	3.21B	2.06B	1.47B	1.71B	1.44B
Net Income	2.25B	2.33B	1.82B	780.80M	1.23B	883.07M
Balance Sheet
Total Assets	72.57B	72.13B	65.67B	62.96B	82.90B	71.44B
Cash, Cash Equivalents and Short-Term Investments	57.40B	57.39B	1.05B	46.65B	47.59B	1.28B
Total Debt	4.64B	4.67B	4.77B	5.51B	4.37B	3.43B
Total Liabilities	59.62B	59.44B	54.65B	53.00B	70.15B	59.60B
Stockholders Equity	12.08B	11.79B	10.13B	9.06B	11.89B	11.00B
Cash Flow
Free Cash Flow	5.70B	5.68B	5.79B	4.95B	4.94B	3.02B
Operating Cash Flow	5.70B	5.68B	5.79B	4.95B	4.94B	3.02B
Investing Cash Flow	-4.74B	-4.41B	-4.51B	-5.08B	-5.26B	-2.03B
Financing Cash Flow	-1.10B	-1.10B	-1.50B	44.30M	277.51M	-726.04M

Hannover Rueck Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 267.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HNR1, the sentiment is Neutral. The current price of 267.6 is below the 20-day moving average (MA) of 273.59, below the 50-day MA of 274.28, and above the 200-day MA of 253.39, indicating a neutral trend. The MACD of -2.56 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 17.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:HNR1.

Hannover Rueck Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	75 Outperform	£52.82M	16.74	7.93%	1.16%	13.60%	46.74%
HNR1	72 Outperform	€32.27B	14.33	19.63%	3.36%	9.68%	18.57%
MUV2	67 Neutral	€71.85B	12.86	18.25%	3.17%	6.63%	26.20%
Sector *	62 Neutral	AU$9.98B	8.06	10.79%	5.20%	31.01%	38.31%