ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NN Group NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.30%.
As of today (2026-06-24), NN Group NV's WACC % is 7.03%. NN Group NV's ROC % is 1.08% (calculated using TTM income statement data).
NN Group NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NN Group NV (FRA:2NN) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, NN Group NV's WACC % is 7.03%. NN Group NV's ROC % is 1.08% (calculated using TTM income statement data).
NN Group NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
NN Group NV ROC % Related Terms
NN Group NV ROC % Historical Data
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The historical data trend for NN Group NV's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NN Group NV (FRA:2NN) has a ROC % of 1.30% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NN Group NV and its competitors.
Is NN Group NV's ROC % too high?
NN Group NV's current ROC % is 1.30%. The Insurance industry median ROC % is 3.37. NN Group NV's value of 1.30% is 61.4% below this industry median. Overall, NN Group NV has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NN Group NV's ROC % compare to BRK.A and AIG?
NN Group NV's ROC % of 1.30% can be compared against companies in the Insurance industry. The industry median ROC % is 3.37. NN Group NV's value of 1.30% is 61.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.37, based on 370 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NN Group NV's current ROC % of 1.30% is 61.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NN Group NV and its competitors. For the Insurance industry, the median ROC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NN Group NV's current ROC % is 1.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NN Group NV stock overvalued right now?
Based on GuruFocus' analysis, NN Group NV (FRA:2NN) is currently considered Significantly Overvalued. The stock's GF Value™ is €50.87, compared to a current price of €75.90 — trading 49.2% above its estimated fair value. The current ROC % is 1.30% and 61.4% below the Insurance industry median of 3.37. NN Group NV's overall GF Score™ is 57/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For NN Group NV (FRA:2NN), the current ROC % is 1.30% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NN Group NV (FRA:2NN) Overvalued in 2026?
Based on GuruFocus' analysis, NN Group NV stock appears to be overvalued.
The current stock price of €75.90 is trading 49.2% above its estimated GF Value™ of €50.87.
GuruFocus considers NN Group NV to be Significantly Overvalued.
Key valuation signals for FRA:2NN:
ROC %: 1.30%
GF Value™: €50.87 vs. price of €75.90 (49.2% above fair value)
Industry Position: 61.4% below the Insurance median
No single metric tells the full story. See the FRA:2NN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NN Group is a European insurance company that primarily sells long-term savings in the Netherlands. The business is made up of four divisions: Netherlands life, Netherlands nonlife, insurance Europe, and Japan life. The Netherlands life business is the biggest division and tends to generate around three-quarters of operating income. That business sells traditional spread-based long-term savings and more modern defined-contribution savings. Since 2022, assets that are managed to support the traditional savings products and in-house part of defined-contribution products are managed by Goldman Sachs Asset Management. Since around 2013, NN has closed its domestic individual life insurance products to new business.
57GF Score
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