A few more European earnings insights (Adidas, Amec, RSA Insurance)

A lot of numbers out today in Europe...here is a wrap-up of a few more numbers.

First...Adidas (or should that be 'adidas'?!)  I wrote at length on the stock last week post the profits pull-back (link here) and hoped that the more detailed Q2 statement would tell me more...unfortunately not particularly.  The three year chart below tells me this is one to keep an eye on.  I want it to come off the front of the business pages, slide down towards Euro50 and on a bad day (as I noted at the above link) an opportunity led by the underlying value of the company's brands may prevail...

Turning to a couple of UK listed companies, I have talked before about waiting for a 1000p share price in the industrial services company Amec and watching the share slide over recent weeks we are getting closer to that level.

So what to make of Amec's numbers today?  Well beyond observations of lumpy conditions in the resources markets that they service to me the key is where the company is going post the completion of their big Foster-Wheeler deal.  To this end the pro-forma guidance is kind of interesting.  £521m of pro-forma ebit implies a forward EV/ebit ratio in the high x8s.  A round number buy level of 1000p still feels about right. 

Finally the turnaround play that is RSA Insurance where management change - as nicely summarised by this graphic - is the big call:

 There is lots to do at RSA and Mr Hester and team have been busy in initially undertaking a money raising and, more recently, selling some non-core businesses.  There is also generally good underlying pricing power:

Nevertheless the outlook statement reflects the risks still out there:

This latter point is important.  Using the 30 June pro-forma (post sales) TNAV I think the share price today is implying a 14.7% return on tangible equity as the share is trading at c. x1.47 tangible book.  So at face value this implies a pretty flawless execution of the medium-term cost cutting / product focusing plan...except further disposals (as shown in today's quarterly report) can be value-adding to the tangible asset base.  That's what I mean it remains a management story: back them to add value and to re-start the dividend at the time of the full-year results (as indicated today) and a story can be made.  The share is also approaching the money raising late Q1 low too...feels like the time (especially in any generalised market weakness) to consider a higher risk add/buy.