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RSA Insurance Group plc (LON:RSA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of RSA, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on RSA Insurance Group here.
Solid track record with excellent balance sheet
Over the past few years, RSA has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did RSA outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a -2.8% earnings growth. This paints a buoyant picture for the company. RSA’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that RSA manages its cash and cost levels well, which is an important determinant of the company’s health. RSA appears to have made good use of debt, producing operating cash levels of 0.54x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For RSA Insurance Group, I’ve put together three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for RSA’s future growth? Take a look at our free research report of analyst consensus for RSA’s outlook.
- Valuation: What is RSA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RSA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RSA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.