Direct Line Insurance Analysis
| DIISYDelisted Stock | USD 18.00 2.85 18.81% |
Direct Line Insurance holds a debt-to-equity ratio of 0.166. With a high degree of financial leverage come high-interest payments, which usually reduce Direct Line's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Direct Line's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Direct Line's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Direct Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Direct Line's stakeholders.
For most companies, including Direct Line, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Direct Line Insurance, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Direct Line's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Direct Line's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Direct Line is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Direct Line to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Direct Line is said to be less leveraged. If creditors hold a majority of Direct Line's assets, the Company is said to be highly leveraged.
Direct Line Insurance is overvalued with Real Value of 14.66 and Hype Value of 18.0. The main objective of Direct Line pink sheet analysis is to determine its intrinsic value, which is an estimate of what Direct Line Insurance is worth, separate from its market price. There are two main types of Direct Line's stock analysis: fundamental analysis and technical analysis.
The Direct Line pink sheet is traded in the USA on PINK Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA.
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Direct Pink Sheet Analysis Notes
The company has price-to-book (P/B) ratio of 1.08. Some equities with similar Price to Book (P/B) outperform the market in the long run. Direct Line Insurance has Price/Earnings To Growth (PEG) ratio of 1.64. The entity last dividend was issued on the 12th of August 2022. The firm had 916:1000 split on the 30th of June 2015. 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.The quote for Direct Line Insurance is published daily by the National Quotation Bureau and the company does not need to meet minimum requirements or file with the SEC. To learn more about Direct Line Insurance call Penelope ACA at 44 1132 920 667 or check out https://www.directlinegroup.co.uk.Direct Line Insurance Investment Alerts
| Direct Line is not yet fully synchronised with the market data | |
| Direct Line has a very high chance of going through financial distress in the upcoming years | |
| 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. |
Direct Market Capitalization
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.89 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Direct Line's market, we take the total number of its shares issued and multiply it by Direct Line's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Direct Profitablity
The company has Profit Margin (PM) of 0.09 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.11 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.11.Direct Line Outstanding Bonds
Direct Line issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Direct Line Insurance uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Direct bonds can be classified according to their maturity, which is the date when Direct Line Insurance has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Direct Line Predictive Daily Indicators
Direct Line intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Direct Line pink sheet daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Direct Line Insurance Debt to Cash Allocation
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.Direct Line Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Direct Line's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Direct Line, which in turn will lower the firm's financial flexibility.Direct Line Corporate Bonds Issued
About Direct Pink Sheet Analysis
Pink Sheet analysis is the technique used by a trader or investor to examine and evaluate how Direct Line prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Direct shares will generate the highest return on investment. We also built our pink sheet analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Pink Sheet such as Direct Line. By using and applying Direct Pink Sheet analysis, traders can create a robust methodology for identifying Direct entry and exit points for their positions.
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.
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Other Consideration for investing in Direct Pink Sheet
If you are still planning to invest in Direct Line Insurance check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Direct Line's history and understand the potential risks before investing.
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