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Nn Group N.V. Unsponsored Adr (NNGRY)
:NNGRY
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NN Group
(OTC:NNGRY)
Select Model
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Rating:69Neutral
Price Target:
$39.00
▲(8.03% Upside)
NN Group's overall stock score is driven by strong technical indicators and a reasonable valuation. The company's financial performance shows profitability and operational efficiency, but challenges in revenue growth and cash management need to be addressed. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Profitability and Margins
Robust profit margins and operational efficiency indicate NN Group's ability to manage costs effectively, supporting long-term profitability.
Balance Sheet Health
A stable balance sheet with moderate leverage provides NN Group resilience against financial uncertainties, ensuring long-term stability.
Cash Generation Ability
Strong cash generation relative to net income supports NN Group's ability to invest in growth opportunities and manage financial obligations.
Negative Factors
Revenue Decline
A substantial decline in revenue indicates potential challenges in market demand or competitive positioning, impacting future growth prospects.
Negative Cash Flows
Negative cash flows can strain NN Group's financial flexibility, limiting its ability to fund operations and growth initiatives effectively.
Revenue Growth Challenges
Ongoing challenges in revenue growth may hinder NN Group's ability to expand its market presence and sustain long-term profitability.
NN Group (NNGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.74B
Dividend Yield5.6%
Average Volume (3M)429.00
Price to Earnings (P/E)14.3
Beta (1Y)0.31
Revenue Growth-15.10%
EPS Growth10.94%
CountryUS
Employees13,497
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.76
Shares Outstanding538,000,000
10 Day Avg. Volume1,287
30 Day Avg. Volume429
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.53
Price to Sales (P/S)0.91
P/FCF Ratio-28.58
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit2.56
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.58
Revenue Forecast (FY)$16.92B
NN Group Business Overview & Revenue Model
Company DescriptionNN Group (NNGRY) is a multinational insurance and asset management company headquartered in the Netherlands. It operates primarily in the insurance sector, offering a range of products and services including life insurance, non-life insurance, pensions, and investment management. The company serves both individual and institutional clients, focusing on providing financial security and investment solutions across various European markets.
How the Company Makes MoneyNN Group generates revenue through multiple key streams. Primarily, it earns income from premiums collected on its life and non-life insurance products, which include health, property, and casualty insurance. The company also generates revenue from asset management fees charged for managing investments on behalf of clients, which include pension funds and retail investors. Additionally, NN Group benefits from investment income derived from the assets it holds in its investment portfolio. Significant partnerships with financial institutions and distribution channels enhance its reach and customer base, contributing to its overall financial performance.
NN Group Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong business performance, robust capital position, and continued commitment to shareholder returns. Despite some challenges in markets and specific regions, the company remains on track to meet its financial targets and sustain growth.Q4-2024 Updates
Positive Updates
Strong Operating Capital Generation
Operating capital generation for 2024 reached €1.9 billion, aligning with the 2025 target and reflecting strong business performance.
Increased Free Cash Flow
Free cash flow increased by 8% year-over-year to €1.5 billion, on track to meet the €1.6 billion target for 2025.
Robust Solvency Ratio
The group solvency ratio stands at 194%, at the upper end of the comfort range of 150% to 200%.
High Value of New Business
The value of new business rose by 20% year-over-year, driven by strong sales and margin improvements in Europe and the Netherlands Life segment.
Sustainable Dividend Growth
Full year dividend announced at €3.44, an 8% increase from the previous year, with a recurring share buyback of €300 million.
Positive Customer Engagement
Improvement in customer satisfaction and relational net promoter score in international markets, with successful AI implementation to enhance customer experience.
Progress in Sustainability
31% reduction in emissions of the corporate investment portfolio since 2021, and increased investments in Climate Solutions to €12.8 billion by 2024.
Negative Updates
Adverse Market and Regulatory Impact
Negative market variance due to wider government bond spreads and negative equity variance, with regulatory changes presenting challenges.
Challenges in Belgium
Belgium required a capital injection of €70 million in 2024 and did not pay a dividend due to strategic bank distribution agreement renewal and regulatory discussions.
Muted Sales in Japan
Sales in Japan remain muted due to a business improvement order, with expectations of recovery only after the order is lifted.
Company Guidance
In the NN Group's Analyst Conference Call, the company reported strong business results for the fiscal year 2024, highlighting key financial metrics and future guidance. Operating capital generation reached €1.9 billion, aligning with the 2025 target, while free cash flow increased by 8% year-over-year to €1.5 billion, on track for the €1.6 billion goal in 2025. The group solvency ratio stood robust at 194%, at the upper end of the comfort range of 150% to 200%. The value of new business grew by 20%, driven by strong sales and margin improvements in Europe, with a notable €2.3 billion net inflow in defined contribution for Netherlands Life. Growth written premium for Netherlands Non-life rose by 4.5%. The company committed to a capital return policy, announcing a full-year dividend of €3.44 per share, an 8% increase, and a €300 million recurring buyback. The aim is to grow dividends by mid-single digits, supported by share buybacks. The group reported advancements in customer satisfaction and sustainability goals, reducing emissions by 31% since 2021 and increasing investments in Climate Solutions to €12.8 billion by 2024. Operating capital generation in Europe increased with a 10% volume growth and a 16% margin growth, contributing to a strong OCG trajectory. Despite pressure on investment results, Netherlands Non-life's OCG came in strong at €406 million, with a combined P&C ratio of 91.9%. The company remains focused on stable remittances, with a sustainable balance sheet and a solvency ratio of 180% at the end of 2024. The DC AUM grew from €25 billion in 2020 to €39 billion, surpassing the initial 2025 target. The company closed three buyouts totaling €0.9 billion in 2024, indicating a strong position for shareholder value delivery, with a positive outlook for achieving 2025 targets.NN Group Financial Statement Overview
Summary
NN Group demonstrates strong profitability and operational efficiency, with high profit margins and a solid EBIT margin. However, significant revenue decline and negative cash flows highlight potential challenges in revenue generation and cash management. The balance sheet remains stable with moderate leverage and a strong equity base, providing resilience against financial uncertainties.Income Statement
The income statement shows a mixed performance with a significant revenue decline of 10.93% in the latest year, indicating potential challenges in revenue generation. However, the company maintains a strong gross profit margin of 92.39% and a net profit margin of 12.54%, reflecting efficient cost management and profitability. The EBIT margin of 25.71% and EBITDA margin of 26.96% are robust, suggesting solid operational efficiency despite revenue challenges.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage and a manageable debt level. The return on equity (ROE) of 7.34% is reasonable, showing decent profitability relative to shareholder equity. The equity ratio of 10.25% suggests a strong equity base, providing a cushion against financial volatility.70
Positive
Cash Flow
The cash flow statement highlights concerns with negative operating and free cash flows, indicating cash management issues. However, the free cash flow to net income ratio of 1.0 suggests that the company is generating sufficient cash relative to its net income. The free cash flow growth rate of 3.62% is a positive sign, but overall cash flow health remains a concern.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.94B | 11.02B | 10.81B | -833.00M | 19.01B | 18.00B |
| Gross Profit | 13.94B | 11.66B | 11.40B | -418.00M | 17.70B | 16.75B |
| EBITDA | 0.00 | 3.40B | 2.72B | 1.38B | 4.50B | 2.86B |
| 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 | 110.64B | 112.98B | 8.21B | 88.56B | 114.81B | 130.56B |
| Total Debt | 13.31B | 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 | 21.04B | 21.03B | 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 Technical Analysis
Positive
36.10
Price Trends
35.01
Positive
34.60
Positive
31.52
Positive
Market Momentum
0.38
Negative
59.91
Neutral
92.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNGRY, the sentiment is Positive. The current price of 36.1 is above the 20-day moving average (MA) of 35.44, above the 50-day MA of 35.01, and above the 200-day MA of 31.52, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 92.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNGRY.
NN Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $37.76B | 11.07 | 20.07% | 1.59% | 7.11% | 22.52% | |
76 Outperform | $18.52B | 12.28 | 13.74% | 3.62% | 12.33% | ― | |
69 Neutral | $18.74B | 14.30 | 6.25% | 5.60% | -15.10% | 10.94% | |
69 Neutral | $12.60B | 8.76 | 14.42% | 5.62% | -6.19% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $41.34B | 13.73 | 7.68% | 2.11% | -23.02% | 52.43% | |
40 Underperform | $13.06B | ― | -41.33% | 2.30% | 7.70% | -155.12% |
* Financial Sector Average
NNGRY
NN Group
36.17
14.87
69.80%
AEG
Aegon
7.86
1.67
26.98%
AIG
American International Group
77.07
2.72
3.66%
HIG
Hartford Insurance
133.04
14.44
12.18%
PFG
Principal Financial
85.94
4.27
5.23%
EQH
Equitable Holdings
45.63
-1.09
-2.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.