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

• Market Cap: €15.46B
• Dividend Yield: 5.67%
• Average Volume (3M): 591.04K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.51
• Revenue Growth: -15.54%
• EPS Growth: 10.53%
• Country: NL
• Employees: 13,497
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 1.31
• Shares Outstanding: 269,000,000
• 10 Day Avg. Volume: 595,943
• 30 Day Avg. Volume: 591,038
• PEG Ratio: 0.19
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -28.50
• 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: €64.68
• Price Target Upside: 3.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €65.00 ▲(4.03% Upside)

NN Group N.V. benefits from strong financial performance and a stable valuation, with technical indicators supporting a positive outlook. However, cash flow challenges are a notable risk that needs addressing.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and effective product offerings, supporting long-term business expansion and competitiveness.

Balance Sheet Health

A stable balance sheet with a solid capital structure enhances financial resilience, allowing NN Group to invest in growth opportunities and withstand economic fluctuations.

Profitability

Strong profitability margins indicate effective cost control and operational efficiency, which are crucial for sustaining long-term financial health and shareholder value.

Negative Factors

Cash Flow Challenges

Negative cash flows can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability and liquidity management.

Revenue Decline

A decline in revenue growth may indicate market challenges or competitive pressures, potentially impacting future earnings and market position if not addressed.

Net Profit Margin Volatility

Volatile profit margins can lead to unpredictable earnings, affecting investor confidence and the company's ability to plan and execute long-term strategies effectively.

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 growth and profitability with a stable balance sheet. However, cash flow issues due to negative operating and free cash flows present a significant risk.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.94B	12.62B	13.18B	8.51B	19.08B	18.74B
Gross Profit	13.94B	12.62B	13.18B	8.51B	19.08B	18.74B
EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Net Income	1.33B	1.58B	1.17B	1.63B	3.28B	1.90B
Balance Sheet
Total Assets	206.11B	210.38B	208.94B	217.11B	251.59B	263.74B
Cash, Cash Equivalents and Short-Term Investments	0.00	112.98B	118.31B	88.56B	114.81B	130.56B
Total Debt	13.08B	11.53B	14.10B	15.40B	12.24B	11.95B
Total Liabilities	184.38B	188.72B	187.82B	199.28B	216.67B	224.97B
Stockholders Equity	21.64B	21.57B	19.62B	17.77B	34.65B	38.49B
Cash Flow
Free Cash Flow	249.00M	-401.00M	62.00M	-8.22B	-2.64B	6.95B
Operating Cash Flow	249.00M	-401.00M	62.00M	-8.18B	-2.59B	7.00B
Investing Cash Flow	1.10B	2.56B	4.53B	6.08B	-1.83B	550.00M
Financing Cash Flow	-393.00M	-3.41B	-2.99B	1.76B	-741.00M	-1.50B

NN Group N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:NN, the sentiment is Positive. The current price of 62.48 is above the 20-day moving average (MA) of 60.96, above the 50-day MA of 60.14, and above the 200-day MA of 54.81, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 95.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
HAL	81 Outperform	€12.27B	7.12	11.85%	2.07%	2.01%	79.48%
ABN	74 Outperform	€22.00B	9.70	9.85%	4.43%	-12.70%	-12.34%
NN	68 Neutral	€15.46B	12.78	6.47%	5.67%	-15.54%	10.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRNL	66 Neutral	€12.05B	11.16	12.65%	5.55%	16.35%	67.44%
AGN	63 Neutral	€10.35B	7.89	14.93%	5.47%	-6.64%	―
INGA	61 Neutral	€65.65B	11.00	12.05%	5.46%	0.12%	-2.71%