| Hannover Rück SE (DE0008402215) | |||
266,60 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 14.04.25 12:56:26 | Hannover Rück's (ETR:HNR1) Dividend Will Be Increased To €9.00 |  |
| Hannover Rück SE (ETR:HNR1) has announced that it will be increasing its dividend from last year's comparable payment on the 12th of May to €9.00. This takes the annual payment to 3.4% of the current stock price, which is about average for the industry. We check all companies for important risks. See what we found for Hannover Rück in our free report. Hannover Rück's Projected Earnings Seem Likely To Cover Future Distributions We aren't too impressed by dividend yields unless they can be sustained over time. Before making this announcement, Hannover Rück was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. The next year is set to see EPS grow by 21.8%. Assuming the dividend continues along recent trends, we think the payout ratio could be 41% by next year, which is in a pretty sustainable range.XTRA:HNR1 Historic Dividend April 14th 2025 See our latest analysis for Hannover Rück Hannover Rück Has A Solid Track Record Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the dividend has gone from €3.00 total annually to €9.00. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable. The Dividend Looks Likely To Grow Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Hannover Rück has been growing its earnings per share at 13% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Hannover Rück's prospects of growing its dividend payments in the future. Hannover Rück Looks Like A Great Dividend Stock In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 13 Hannover Rück analysts we track are forecasting continued growth with our freereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 10.04.25 12:28:35 | Hannover Rück's (ETR:HNR1) five-year total shareholder returns outpace the underlying earnings growth |  |
| Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. For example, long term Hannover Rück SE (ETR:HNR1) shareholders have enjoyed a 91% share price rise over the last half decade, well in excess of the market return of around 23% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 12% in the last year, including dividends. In light of the stock dropping 9.1% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Hannover Rück achieved compound earnings per share (EPS) growth of 13% per year. This EPS growth is reasonably close to the 14% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).XTRA:HNR1 Earnings Per Share Growth April 10th 2025 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Hannover Rück's earnings, revenue and cash flow . What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Hannover Rück the TSR over the last 5 years was 126%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Story Continues A Different Perspective It's good to see that Hannover Rück has rewarded shareholders with a total shareholder return of 12% in the last twelve months. And that does include the dividend. Having said that, the five-year TSR of 18% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. Importantly, we haven't analysed Hannover Rück's dividend history. This freevisual report on its dividends is a must-read if you're thinking of buying. Of course Hannover Rück may not be the best stock to buy. So you may wish to see this freecollection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 21.03.25 06:07:15 | Hannover Rück's (ETR:HNR1) Shareholders Will Receive A Bigger Dividend Than Last Year | |
| Hannover Rück SE (ETR:HNR1) will increase its dividend from last year's comparable payment on the 12th of May to €9.00. This takes the annual payment to 3.3% of the current stock price, which is about average for the industry. Hannover Rück's Future Dividend Projections Appear Well Covered By Earnings We aren't too impressed by dividend yields unless they can be sustained over time. However, Hannover Rück's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow. Looking forward, earnings per share is forecast to rise by 21.7% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 41% by next year, which is in a pretty sustainable range.XTRA:HNR1 Historic Dividend March 21st 2025 See our latest analysis for Hannover Rück Hannover Rück Has A Solid Track Record The company has an extended history of paying stable dividends. The dividend has gone from an annual total of €3.00 in 2015 to the most recent total annual payment of €9.00. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. The Dividend Looks Likely To Grow Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Hannover Rück has impressed us by growing EPS at 13% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. We Really Like Hannover Rück's Dividend Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 12 analysts we track are forecasting for Hannover Rück for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 16.03.25 07:24:27 | Hannover Rück SE (ETR:HNR1) Just Released Its Yearly Earnings: Here's What Analysts Think | |
| Investors in Hannover Rück SE (ETR:HNR1) had a good week, as its shares rose 2.6% to close at €274 following the release of its full-year results. Results were roughly in line with estimates, with revenues of €26b and statutory earnings per share of €19.31. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Check out our latest analysis for Hannover Rück XTRA:HNR1 Earnings and Revenue Growth March 16th 2025 Taking into account the latest results, the current consensus from Hannover Rück's twelve analysts is for revenues of €28.0b in 2025. This would reflect a satisfactory 5.9% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.0% to €20.85. Before this earnings report, the analysts had been forecasting revenues of €27.6b and earnings per share (EPS) of €20.78 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. The analysts reconfirmed their price target of €274, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Hannover Rück, with the most bullish analyst valuing it at €320 and the most bearish at €185 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hannover Rück's past performance and to peers in the same industry. The analysts are definitely expecting Hannover Rück's growth to accelerate, with the forecast 5.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Hannover Rück is expected to grow slower than the wider industry. Story Continues The Bottom Line The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €274, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hannover Rück analysts - going out to 2027, and you can see them free on our platform here. You can also see whether Hannover Rück is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 15.03.25 07:03:25 | Hannover Rück Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags | |
| Hannover Rück (ETR:HNR1) Full Year 2024 Results Key Financial Results Revenue: €26.5b (up 2.9% from FY 2023). Net income: €2.33b (up 28% from FY 2023). Profit margin: 8.8% (up from 7.1% in FY 2023). EPS: €19.31 (up from €15.13 in FY 2023).XTRA:HNR1 Revenue and Expenses Breakdown March 15th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Hannover Rück Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 1.7%. The primary driver behind last 12 months revenue was the Property & Casualty Reinsurance segment contributing a total revenue of €20.3b (77% of total revenue). Notably, cost of sales worth €23.4b amounted to 88% of total revenue thereby underscoring the impact on earnings.Explore how HNR1's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Insurance industry in Europe. Performance of the market in Germany. The company's shares are up 2.6% from a week ago. Balance Sheet Analysis While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. We've done some analysis and you can see our take on Hannover Rück's balance sheet. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 14.03.25 07:05:25 | Hannover Rueck SE (HVRRF) Q4 2024 Earnings Call Highlights: Surpassing Targets and Boosting ... | |
| Group Net Income: Slightly above EUR2.3 billion, exceeding the initial target of EUR2.1 billion. Total Dividend: EUR9 per share, including a EUR7 ordinary dividend and a EUR2 special dividend, a 25% increase from the previous year. P&C Reinsurance Revenue Growth: 11% currency-adjusted growth rate. Combined Ratio: 86.6%, within the target range below 89%. Large Loss Impact: EUR200 million below budget. Life & Health Reinsurance Revenue: Stable year-on-year. Reinsurance Service Result: EUR883 million, exceeding the target of more than EUR850 million. Return on Investments: 3.2%, driven by higher interest rates and strong operating cash flow. Operating Cash Flow: EUR5.7 billion. Group Cost Ratio: 3.2%. Return on Equity: 21.2%. Solvency Ratio: Approximately 261%. Shareholders' Equity Increase: Up by 16.5%. CSM Increase: About 6%. Risk Adjustment Increase: 7.4%. EBIT for P&C: More than doubled to EUR2.4 billion. Life & Health EBIT: EUR934 million, an increase of 7%. New Business Generation: EUR624 million. Investment Result: Strong ordinary income with a return on investment of 3.2%. Warning! GuruFocus has detected 3 Warning Sign with HVRRF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: March 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Hannover Rueck SE (HVRRF) reported a group net income slightly above EUR2.3 billion, surpassing the initial target of EUR2.1 billion. The company proposed an increase in the ordinary dividend to EUR7 per share, complemented by a special dividend of EUR2, totaling EUR9, a 25% increase from the previous year. The P&C reinsurance segment saw a currency-adjusted growth rate of 11% in reinsurance revenue, with a combined ratio of 86.6%, indicating strong profitability. The return on investments was 3.2%, driven by higher interest rates and strong operating cash flow, exceeding the target of 2.8%. Hannover Rueck SE (HVRRF) maintained a strong solvency ratio of about 261%, reflecting healthy capitalization and providing flexibility for future growth opportunities. Negative Points The Life & Health reinsurance revenue remained stable, with growth in morbidity and longevity offset by the runoff of the US mortality business. The company faced regulatory challenges in China affecting the Financial Solutions business, impacting new business generation. The impact of large losses was EUR1.63 billion for the full year, with Hurricane Milton alone causing a net impact of EUR230 million. The currency result was negatively impacted by the strengthening of the US dollar, resulting in a minus EUR143 million effect. The reserve strengthening for the Russia-Ukraine loss complex and other older underwriting years added pressure on the financial results. Story Continues Q & A Highlights Q: Can you provide an update on the German motor insurance market and your outlook on pricing? A: Sven Althoff, Member of the Executive Board, explained that both insurers and reinsurers have increased rates due to inflation, particularly in physical damage. The additional rate increases during the 2025 renewals are expected to bring the business back into profitable territory, meeting hurdle rates. Q: How do you view the reserve resilience and its development moving forward? A: Clemens Jungsthofel, CFO, stated that the reserve resilience, including the risk adjustment, is strong, with a level of around 7% relative to reserves. The company expects this to grow nominally and in relative terms, maintaining a stable level. The risk adjustment is seen as part of the hard capital by rating agencies. Q: What are the main drivers behind the increase in SCR from P&C underwriting risk? A: Clemens Jungsthofel, CFO, noted that the increase is due to growth in nat-cat capacity and reserve risk, driven by business growth and loss development. The reduction in retrocession also contributed. The market risk increase was due to higher volumes in real estate, private equity, and fixed income. Q: Can you explain the rationale behind the dividend payout ratio and potential for future increases? A: Jean-Jacques Henchoz, CEO, explained that the payout ratio reflects a balance between a favorable earnings outlook and growth opportunities. The 47% payout ratio aligns with historical levels, and the company prioritizes reinvesting in well-priced growth opportunities. Q: What is your outlook for Life & Health growth, given the challenges in China and longevity competition? A: Clemens Jungsthofel, CFO, acknowledged the regulatory changes in China affecting financial solutions but emphasized ongoing work to adapt. The company remains cautious in longevity due to competition but sees potential for growth in other areas, maintaining a positive long-term outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 04.03.25 08:08:57 | Hannover Rück SE's (ETR:HNR1) Stock Is Going Strong: Is the Market Following Fundamentals? | |
| Hannover Rück (ETR:HNR1) has had a great run on the share market with its stock up by a significant 6.5% over the last week. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Hannover Rück's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. View our latest analysis for Hannover Rück How Is ROE Calculated? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Hannover Rück is: 19% = €2.3b ÷ €12b (Based on the trailing twelve months to September 2024). The 'return' is the income the business earned over the last year. So, this means that for every €1 of its shareholder's investments, the company generates a profit of €0.19. What Is The Relationship Between ROE And Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Hannover Rück's Earnings Growth And 19% ROE To begin with, Hannover Rück seems to have a respectable ROE. Especially when compared to the industry average of 10% the company's ROE looks pretty impressive. This probably laid the ground for Hannover Rück's moderate 11% net income growth seen over the past five years. We then compared Hannover Rück's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 14% in the same 5-year period, which is a bit concerning.XTRA:HNR1 Past Earnings Growth March 4th 2025 Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Hannover Rück's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Story Continues Is Hannover Rück Making Efficient Use Of Its Profits? With a three-year median payout ratio of 40% (implying that the company retains 60% of its profits), it seems that Hannover Rück is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Moreover, Hannover Rück is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 49% over the next three years. Despite the higher expected payout ratio, the company's ROE is not expected to change by much. Summary Overall, we are quite pleased with Hannover Rück's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 10.02.25 13:56:27 | While individual investors own 27% of Hannover Rück SE (ETR:HNR1), private companies are its largest shareholders with 50% ownership | |
| Key Insights Significant control over Hannover Rück by private companies implies that the general public has more power to influence management and governance-related decisions HDI Haftpflichtverband der Deutschen Industrie V.a.G. owns 50% of the company 23% of Hannover Rück is held by Institutions If you want to know who really controls Hannover Rück SE (ETR:HNR1), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And individual investors on the other hand have a 27% ownership in the company. In the chart below, we zoom in on the different ownership groups of Hannover Rück. Check out our latest analysis for Hannover Rück XTRA:HNR1 Ownership Breakdown February 10th 2025 What Does The Institutional Ownership Tell Us About Hannover Rück? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Hannover Rück. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Hannover Rück, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:HNR1 Earnings and Revenue Growth February 10th 2025 Hedge funds don't have many shares in Hannover Rück. Looking at our data, we can see that the largest shareholder is HDI Haftpflichtverband der Deutschen Industrie V.a.G. with 50% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. The second and third largest shareholders are Deutsche Asset & Wealth Management and FMR LLC, with an equal amount of shares to their name at 3.0%. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Insider Ownership Of Hannover Rück The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Story Continues I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid. General Public Ownership The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership We can see that Private Companies own 50%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free. Ultimately the future is most important. You can access this freereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 31.12.24 05:54:21 | Is Now The Time To Put Hannover Rück (ETR:HNR1) On Your Watchlist? | |
| Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Hannover Rück (ETR:HNR1). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. See our latest analysis for Hannover Rück How Quickly Is Hannover Rück Increasing Earnings Per Share? If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Shareholders will be happy to know that Hannover Rück's EPS has grown 28% each year, compound, over three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Hannover Rück achieved similar EBIT margins to last year, revenue grew by a solid 5.9% to €27b. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.XTRA:HNR1 Earnings and Revenue History December 31st 2024 While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Hannover Rück? Are Hannover Rück Insiders Aligned With All Shareholders? It's a good habit to check into a company's remuneration policies to ensure that the CEO and management team aren't putting their own interests before that of the shareholder with excessive salary packages. Our analysis has discovered that the median total compensation for the CEOs of companies like Hannover Rück, with market caps over €7.7b, is about €4.6m. Hannover Rück's CEO took home a total compensation package of €2.1m in the year prior to December 2023. First impressions seem to indicate a compensation policy that is favourable to shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. Story Continues Does Hannover Rück Deserve A Spot On Your Watchlist? You can't deny that Hannover Rück has grown its earnings per share at a very impressive rate. That's attractive. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. We think that based on its merits alone, this stock is worth watching into the future. Now, you could try to make up your mind on Hannover Rück by focusing on just these factors, oryou could also consider how its price-to-earnings ratio compares to other companies in its industry. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of German companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 24.09.24 04:16:57 | Is Hannover Rück SE's (ETR:HNR1) Recent Performance Tethered To Its Attractive Financial Prospects? | |
| Most readers would already know that Hannover Rück's (ETR:HNR1) stock increased by 6.5% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on Hannover Rück's ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Check out our latest analysis for Hannover Rück How Is ROE Calculated? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Hannover Rück is: 17% = €2.0b ÷ €11b (Based on the trailing twelve months to June 2024). The 'return' is the income the business earned over the last year. Another way to think of that is that for every €1 worth of equity, the company was able to earn €0.17 in profit. Why Is ROE Important For Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. A Side By Side comparison of Hannover Rück's Earnings Growth And 17% ROE To start with, Hannover Rück's ROE looks acceptable. Even when compared to the industry average of 16% the company's ROE looks quite decent. This probably goes some way in explaining Hannover Rück's moderate 7.3% growth over the past five years amongst other factors. As a next step, we compared Hannover Rück's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 12% in the same period. past-earnings-growth The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Hannover Rück's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Story continues Is Hannover Rück Making Efficient Use Of Its Profits? Hannover Rück has a healthy combination of a moderate three-year median payout ratio of 44% (or a retention ratio of 56%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Additionally, Hannover Rück has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 48%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 19%. Conclusion In total, we are pretty happy with Hannover Rück's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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