| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
DLG Stock Overview
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom.
Direct Line Insurance Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£2.47 |
| 52 Week High | UK£3.19 |
| 52 Week Low | UK£2.31 |
| Beta | 0.50 |
| 1 Month Change | -4.83% |
| 3 Month Change | -19.07% |
| 1 Year Change | -17.37% |
| 3 Year Change | -23.80% |
| 5 Year Change | -29.91% |
| Change since IPO | 20.19% |
Recent News & Updates
Direct Line Insurance Group (LON:DLG) Is Increasing Its Dividend To UK£0.15
Direct Line Insurance Group plc ( LON:DLG ) will increase its dividend on the 17th of May to UK£0.15. This takes the...
Shareholder Returns
| DLG | GB Insurance | GB Market | |
|---|---|---|---|
| 7D | 4.4% | 2.3% | 0.2% |
| 1Y | -17.4% | -20.8% | -3.8% |
Return vs Industry: DLG exceeded the UK Insurance industry which returned -20.8% over the past year.
Return vs Market: DLG underperformed the UK Market which returned -3.8% over the past year.
Price Volatility
| DLG volatility | |
|---|---|
| DLG Average Weekly Movement | 5.0% |
| Insurance Industry Average Movement | 5.0% |
| Market Average Movement | 6.1% |
| 10% most volatile stocks in GB Market | 11.7% |
| 10% least volatile stocks in GB Market | 3.1% |
Stable Share Price: DLG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DLG's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1985 | 9,786 | Penny James | https://www.directlinegroup.co.uk |
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, rescue, travel, creditor, and pet insurance products, as well as insurance for mid-to-high-net worth customers; and commercial insurance for small and medium-sized enterprises.
Direct Line Insurance Group Fundamentals Summary
| DLG fundamental statistics | |
|---|---|
| Market Cap | UK£3.22b |
| Earnings (TTM) | UK£327.10m |
| Revenue (TTM) | UK£3.21b |
9.8x
P/E Ratio1.0x
P/S RatioIs DLG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DLG income statement (TTM) | |
|---|---|
| Revenue | UK£3.21b |
| Cost of Revenue | UK£1.96b |
| Gross Profit | UK£1.25b |
| Other Expenses | UK£923.40m |
| Earnings | UK£327.10m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 02, 2022
| Earnings per share (EPS) | 0.25 |
| Gross Margin | 38.93% |
| Net Profit Margin | 10.18% |
| Debt/Equity Ratio | 19.8% |
How did DLG perform over the long term?
See historical performance and comparisonDividends
9.2%
Current Dividend Yield93%
Payout RatioValuation
Is Direct Line Insurance Group undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DLG (£2.47) is trading below our estimate of fair value (£6.49)
Significantly Below Fair Value: DLG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DLG is good value based on its PE Ratio (9.8x) compared to the UK Insurance industry average (15.6x).
PE vs Market: DLG is good value based on its PE Ratio (9.8x) compared to the UK market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: DLG is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: DLG's PB Ratio (1.1x) is in line with the GB Insurance industry average.
Future Growth
How is Direct Line Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLG's forecast earnings growth (7.9% per year) is above the savings rate (0.9%).
Earnings vs Market: DLG's earnings (7.9% per year) are forecast to grow slower than the UK market (11.2% per year).
High Growth Earnings: DLG's earnings are forecast to grow, but not significantly.
Revenue vs Market: DLG's revenue (3.5% per year) is forecast to grow slower than the UK market (4.1% per year).
High Growth Revenue: DLG's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DLG's Return on Equity is forecast to be low in 3 years time (16.6%).
Past Performance
How has Direct Line Insurance Group performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
0.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLG has high quality earnings.
Growing Profit Margin: DLG's current net profit margins (10.2%) are lower than last year (10.9%).
Past Earnings Growth Analysis
Earnings Trend: DLG's earnings have grown by 0.2% per year over the past 5 years.
Accelerating Growth: DLG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DLG had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Insurance industry average (-13.9%).
Return on Equity
High ROE: DLG's Return on Equity (11.9%) is considered low.
Financial Health
How is Direct Line Insurance Group's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: DLG's short term assets (£3.1B) do not cover its short term liabilities (£5.7B).
Long Term Liabilities: DLG's short term assets (£3.1B) exceed its long term liabilities (£713.5M).
Debt to Equity History and Analysis
Debt Level: DLG has more cash than its total debt.
Reducing Debt: DLG's debt to equity ratio has reduced from 23.6% to 19.8% over the past 5 years.
Debt Coverage: DLG's debt is well covered by operating cash flow (76.6%).
Interest Coverage: DLG's interest payments on its debt are well covered by EBIT (14.6x coverage).
Balance Sheet
Dividend
What is Direct Line Insurance Group current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
9.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLG's dividend (9.21%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).
High Dividend: DLG's dividend (9.21%) is in the top 25% of dividend payers in the UK market (4.85%)
Stability and Growth of Payments
Stable Dividend: DLG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: DLG's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (92.7%), DLG's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (98.4%), DLG's dividend payments are not well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Penny James (52 yo)
3yrs
Tenure
UK£3,235,000
Compensation
Ms. Penelope Jane James, also known as Penny, ACA, has been Senior Independent Director of Hargreaves Lansdown plc since September 1, 2021. She has been the Chief Executive Officer at Direct Line Insurance...
CEO Compensation Analysis
Compensation vs Market: Penny's total compensation ($USD3.96M) is above average for companies of similar size in the UK market ($USD2.89M).
Compensation vs Earnings: Penny's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DLG's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: DLG's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Direct Line Insurance Group plc's employee growth, exchange listings and data sources
Key Information
- Name: Direct Line Insurance Group plc
- Ticker: DLG
- Exchange: LSE
- Founded: 1985
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Implied Market Cap: UK£3.219b
- Shares outstanding: 1.31b
- Website: https://www.directlinegroup.co.uk
Number of Employees
Location
- Direct Line Insurance Group plc
- Churchill Court
- Westmoreland Road
- Bromley
- Greater London
- BR1 1DP
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.