[quote alias=Boston Red Sox id=15165089 date=202401281839]
Dit is een computergegenereerde analyse. Ik zou er niet teveel waarde aan hechten. Dit zijn de pro’s en contra’s van het aandeel NN volgens dit model:
Fail
Is their dividend sustainable?
Dividend of 7.68% is not well covered by earnings or cash flows
Fail
Have profit margins improved over the past year?
Profit margins (1.6%) are lower than last year (21.3%)
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Wanneer ik de eerste tweevragen aan ChatGPT vraag, krijg ik een ander beeld:
Is dividend of NN Group sustainable?
ChatGPT
The dividend sustainability of NN Group seems to be on solid ground based on the available information. NN Group has demonstrated a commitment to maintaining a progressive dividend policy. This means that they intend to increase their ordinary dividend per share over time. The company plans to pay out an interim dividend, calculated as approximately 40% of the previous year's full-year dividend, and propose a final dividend at their annual general meeting. This policy is consistent with their financial performance and strategic objectives.
NN Group's approach to dividends also includes the option to pay dividends in cash or in ordinary shares, at the shareholder's election. They also have a practice of repurchasing ordinary shares to neutralize the dilutive effect of stock dividends, further showing their commitment to maintaining shareholder value.
Furthermore, NN Group's financial performance and strategic decisions, including their solvency and liquidity position, regulatory requirements, and other considerations, play a significant role in their dividend decisions. As of late 2023, NN Group had a robust Solvency II ratio, indicating a strong capital position.
An analysis by Seeking Alpha using the Gordon's Growth Model, which is suitable for companies with stable and predictable dividend growth like NN Group, suggests that the company's dividend policy is sustainable. The analysis considered factors like the value of the next year's dividend, the rate of return, and the expected dividend growth rate. This model indicated that NN Group's shares were undervalued, suggesting confidence in the company's financial stability and dividend sustainability.
Additionally, NN Group's recent settlement in a legal matter and their decision to increase the dividend by a double-digit percentage compared to 2022 further reinforce the notion of a strong financial position capable of supporting their dividend policy. The company's plan to continue buying back shares and returning excess capital to shareholders, unless used for value-creating opportunities, also supports this view.
Considering these factors, it appears that NN Group's dividend is sustainable, supported by a strong financial base and a strategic approach to shareholder returns. However, it's important for investors to continually monitor the company's financial health and market conditions, as these can influence dividend sustainability.
For more detailed information, you can refer to the sources:
NN Group's dividend policy and history on their official website NN Group
Analysis on Seeking Alpha Seeking Alpha
Information about NN Group's recent dividend increase on De Aandeelhouder De Aandeelhouder
User
Have profit margins of NN Group improved over the past year?
ChatGPT
Based on the information from NN Group's financial reports and performance updates, it appears that the profit margins of NN Group have shown improvement over the past year.
In the first half of 2023, NN Group reported a significant increase in its Operating Capital Generation (OCG), which rose by 14.8% compared to the same period in the previous year. This increase reflects stronger contributions from various segments of their business, including the Netherlands Non-life, Insurance Europe, and Banking segments. This improvement in OCG is a positive indicator of the company's profitability and financial health.
Comparatively, for the second half of 2021, NN Group had reported an OCG of EUR 804 million, driven by strong business performance and commercial momentum. This brought the total capital generation for 2021 to almost EUR 1.6 billion, meeting the company's target for 2023 ahead of schedule. The robust balance sheet and capital position, as evidenced by a Solvency II ratio of 213% and holding company cash capital of EUR 2.0 billion at year-end 2021, further supported this growth.
Furthermore, in the first half of 2022, NN Group continued to demonstrate resilience in its business operations. Despite some challenges, such as inflation impacts and market volatility, the company maintained a strong balance sheet. The operating result for this period included contributions from newly acquired businesses, indicating an ongoing expansion and diversification of their portfolio.
These financial results and strategic developments suggest that NN Group has been successfully navigating market conditions and improving its profitability. The company's focus on expanding and enhancing its services, along with prudent financial management, seems to be contributing positively to its profit margins.
For more detailed information, you can refer to NN Group's official website for their financial results and performance updates:
NN Group's performance in the first half of 2023 NN Group 2023 H1
NN Group's performance in the second half of 2021 and first half of 2022 NN Group 2021 H2 and 2022 H1