$RSA.L is a really crummy business

According to Stockopedia, RSA (RSA Insurance) has an average ROCE of 3.2% over the last 6 years. It’s fair to say that that makes it a bad business. Over 5 years, the share price returned -36%, compared with the Footsie, which is +52%. No wonder, given it can’t earn a decent return on its capital.

Its PTBV (price to tangible book value) is 1.61 despite recent falls. I doubt RSA is worth a PTBV more than 1, so there would appear to be more downside than upside on this share.

That’s not to say that there wont be a dead cat bounce due to the severity of the declines.

No holding.


About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s