Direct Line Insurance Stock Performance
| DIISY Stock | USD 9.41 1.52 19.26% |
The firm shows a Beta (market volatility) of 0.0226, which means not very significant fluctuations relative to the market. As returns on the market increase, Direct Line's returns are expected to increase less than the market. However, during the bear market, the loss of holding Direct Line is expected to be smaller as well. At this point, Direct Line Insurance has a negative expected return of -0.053%. Please make sure to confirm Direct Line's total risk alpha, kurtosis, as well as the relationship between the Kurtosis and market facilitation index , to decide if Direct Line Insurance performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Direct Line Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Direct Line is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors. ...more
| Begin Period Cash Flow | 1.2 B | |
| Total Cashflows From Investing Activities | -138.7 M |
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Direct Line Relative Risk vs. Return Landscape
If you would invest 1,000.00 in Direct Line Insurance on August 31, 2024 and sell it today you would lose (59.00) from holding Direct Line Insurance or give up 5.9% of portfolio value over 90 days. Direct Line Insurance is currently producing negative expected returns and takes up 3.077% volatility of returns over 90 trading days. Put another way, 27% of traded pink sheets are less volatile than Direct, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
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Direct Line Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Direct Line's investment risk. Standard deviation is the most common way to measure market volatility of pink sheets, such as Direct Line Insurance, and traders can use it to determine the average amount a Direct Line's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0172
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Estimated Market Risk
| 3.08 actual daily | 27 73% of assets are more volatile |
Expected Return
| -0.05 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.02 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Direct Line is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Direct Line by adding Direct Line to a well-diversified portfolio.
Direct Line Fundamentals Growth
Direct Pink Sheet prices reflect investors' perceptions of the future prospects and financial health of Direct Line, and Direct Line fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Direct Pink Sheet performance.
| Return On Equity | 0.1 | |||
| Return On Asset | 0.0251 | |||
| Profit Margin | 0.09 % | |||
| Operating Margin | 0.11 % | |||
| Current Valuation | 2.85 B | |||
| Shares Outstanding | 327.85 M | |||
| Price To Earning | 7.19 X | |||
| Price To Book | 1.08 X | |||
| Price To Sales | 1.09 X | |||
| Revenue | 3.24 B | |||
| EBITDA | 449 M | |||
| Cash And Equivalents | 777.2 M | |||
| Cash Per Share | 2.39 X | |||
| Total Debt | 513.6 M | |||
| Debt To Equity | 0.17 % | |||
| Book Value Per Share | 8.04 X | |||
| Cash Flow From Operations | 439 M | |||
| Earnings Per Share | 0.97 X | |||
| Total Asset | 9.31 B | |||
| Retained Earnings | 1.03 B | |||
| Current Asset | 963.7 M | |||
| Current Liabilities | 6.49 B | |||
About Direct Line Performance
Evaluating Direct Line's performance through its fundamental ratios, provides valuable insights into its operational efficiency and profitability. For instance, if Direct Line has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Direct Line has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements. Please also refer to our technical analysis and fundamental analysis pages.
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom. Direct Line operates under InsuranceDiversified classification in the United States and is traded on OTC Exchange. It employs 9786 people.Things to note about Direct Line Insurance performance evaluation
Checking the ongoing alerts about Direct Line for important developments is a great way to find new opportunities for your next move. Pink Sheet alerts and notifications screener for Direct Line Insurance help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Direct Line generated a negative expected return over the last 90 days | |
| Direct Line has high historical volatility and very poor performance | |
| Direct Line Insurance has accumulated 513.6 M in total debt with debt to equity ratio (D/E) of 0.17, which may suggest the company is not taking enough advantage from borrowing. Direct Line Insurance has a current ratio of 0.52, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Direct Line until it has trouble settling it off, either with new capital or with free cash flow. So, Direct Line's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Direct Line Insurance sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Direct to invest in growth at high rates of return. When we think about Direct Line's use of debt, we should always consider it together with cash and equity. |
- Analyzing Direct Line's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Direct Line's stock is overvalued or undervalued compared to its peers.
- Examining Direct Line's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Direct Line's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Direct Line's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Direct Line's pink sheet. These opinions can provide insight into Direct Line's potential for growth and whether the stock is currently undervalued or overvalued.
Additional Tools for Direct Pink Sheet Analysis
When running Direct Line's price analysis, check to measure Direct Line's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.