NN Group N.V. (NN) AI Stock Analysis

• Market Cap: €14.97B
• Dividend Yield: 6.11%
• Average Volume (3M): 632.64K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.59
• Revenue Growth: -15.54%
• EPS Growth: 10.53%
• Country: NL
• Employees: 13,497
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance - Diversified
• EPS (TTM): 1.31
• Shares Outstanding: 269,000,000
• 10 Day Avg. Volume: 547,221
• 30 Day Avg. Volume: 632,638
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €65.20
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: €63.00 ▲(8.81% Upside)

The strong technical performance and attractive valuation are the primary drivers of the score, offsetting concerns about cash flow issues. The company's growth and profitability are robust, but attention to cash flow management is necessary.

NN Group N.V. Business Overview & Revenue Model

Company Description

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands and internationally. The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments. 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; employee benefits, and health insurance products; corporate-owned life insurance products; and single premium variable annuity individual life insurance products. The company also provides banking services, including mortgage loans, online savings accounts, bank annuities, consumer lending, and retail investment products, as well as administration and management services; reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, retail customers, and institutional customers directly, as well as through tied agents, bancassurance partners, brokers, and direct channels. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014. NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.

How the Company Makes Money

NN Group generates revenue primarily through premiums collected from its insurance products, including life and non-life insurance policies. The Life segment contributes significantly to earnings by offering long-term insurance products, where customers pay premiums in exchange for coverage and benefits. The Non-life segment generates revenue from policies covering property, health, and liability risks. Additionally, NN earns income from its Investment Management segment, which includes fees from managing assets for both retail and institutional clients. The company also benefits from partnerships with financial institutions and distribution channels that enhance its market reach and customer base. Investment income from the portfolio of assets backing its insurance liabilities further contributes to overall profitability.

NN Group N.V. Financial Statement Overview

Summary

NN Group N.V. shows strong revenue and profitability growth with a stable balance sheet, but cash flow issues pose a risk. The company must focus on improving operational cash generation.

Income Statement

NN Group N.V. experienced a significant revenue increase of 22.9% in 2024 compared to 2023, indicating positive growth. The gross profit margin is consistently high due to the nature of the insurance industry. However, net profit margins have been volatile, with a notable increase in the latest year. EBIT and EBITDA margins are strong, reflecting efficient operations and cost management.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, demonstrating balanced financial leverage. The equity ratio shows improvement, indicating a solid capital structure. Return on equity has shown a positive trajectory, reflecting effective use of shareholder funds. Overall, the balance sheet is stable with adequate liquidity.

Cash Flow

NN Group N.V. faces challenges with negative operating and free cash flows in recent periods, raising concerns about cash generation. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting profits into cash. However, investing cash flows are positive, showing potential long-term growth investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.62B	10.26B	15.54B	20.50B	19.92B
Gross Profit	12.62B	-13.54B	15.54B	20.50B	19.92B
EBITDA	9.42B	8.87B	1.32B	3.60B	2.65B
Net Income	1.58B	1.17B	477.00M	3.28B	1.90B
Balance Sheet
Total Assets	210.38B	208.94B	217.11B	251.59B	263.74B
Cash, Cash Equivalents and Short-Term Investments	112.98B	118.31B	88.56B	114.81B	130.56B
Total Debt	11.53B	14.10B	15.40B	12.24B	11.95B
Total Liabilities	188.72B	187.82B	199.28B	216.67B	224.97B
Stockholders Equity	21.57B	19.62B	17.77B	34.65B	38.49B
Cash Flow
Free Cash Flow	-401.00M	62.00M	-8.22B	-2.64B	6.95B
Operating Cash Flow	-401.00M	62.00M	-8.18B	-2.59B	7.00B
Investing Cash Flow	2.56B	4.53B	6.08B	-1.83B	550.00M
Financing Cash Flow	-3.41B	-2.99B	1.76B	-741.00M	-1.50B

NN Group N.V. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 57.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:NN, the sentiment is Neutral. The current price of 57.9 is below the 20-day moving average (MA) of 59.68, above the 50-day MA of 57.83, and above the 200-day MA of 48.98, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:NN.

NN Group N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NN	73 Outperform	€14.97B	12.23	6.47%	6.11%	-15.54%	10.53%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
0RDM	―	€21.13B	9.26	10.16%	―	―	―
0Q0Y	―	€10.13B	7.79	14.93%	―	―	―
0RHS	―	€12.10B	11.15	12.65%	―	―	―
0K9V	―	€12.83B	7.43	11.85%	―	―	―
0RIC	―	€62.28B	10.47	12.42%	―	―	―