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Exploring NN Group's Potential Entry into the Banking Sector and Return on Invested Capital
The chapter delves into NN Group's considerations of entering the banking sector, expressing concerns about potential risks and impacts on stability and shareholder returns. It also explains the concept of Return on Invested Capital (ROIC), emphasizing its importance for investors in evaluating company profitability and cash flow generation. The discussion covers various European companies with high ROIC, focusing on factors like monopoly status, pricing power, and brand strength that contribute to sustained growth and dividend increases.