NN Group: Full Valuation Makes Yield The Most Attractive Feature Of Its Investment Case (Rating Downgrade)
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Labutes IR4.24K FollowersFollow5ShareSavePlay(12min)CommentsSummaryNN Group is fairly valued after a strong rally, with limited upside and muted growth prospects.NNGPF's high, sustainable dividend yield (~5.8%) and share buybacks support its appeal to income-focused investors.Organic capital generation and cash flow remain robust, but profitability and ROE lag sector averages, justifying a discounted valuation.I now rate NN Group as 'Hold' due to a stable business profile, conservative capital returns, and lack of significant catalysts.
Getty Images As I’ve covered in the past, NN Group N.V. (NNGPF) (NNGRY) is an interesting income play in the European insurance sector, but following a strong share price rally in recent years its valuation is nowadays fair, and upsideThis article was written byLabutes IR4.24K FollowersFollowLabutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You