How RSA Insurance Group plc (LON:RSA) Could Add Value To Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of RSA Insurance Group plc (LON:RSA), there’s is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on RSA Insurance Group here.

Excellent balance sheet with proven track record

RSA has a strong track record of performance. In the previous year, RSA delivered an impressive double-digit return of 1.7% Unsurprisingly, RSA surpassed the industry return of 1.6%, which gives us more confidence of the company’s capacity to drive earnings going forward. RSA’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RSA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. RSA seems to have put its debt to good use, generating operating cash levels of 0.34x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

LSE:RSA Income Statement, March 22nd 2019
LSE:RSA Income Statement, March 22nd 2019

Next Steps:

For RSA Insurance Group, I’ve compiled three pertinent aspects you should further research:

  1. 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.
  2. 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.
  3. 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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.