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£2.69|
|52 Week High||UK£3.42|
|52 Week Low||UK£2.61|
|1 Month Change||-5.44%|
|3 Month Change||-13.99%|
|1 Year Change||-10.80%|
|3 Year Change||-13.33%|
|5 Year Change||-24.74%|
|Change since IPO||31.26%|
Recent News & Updates
|DLG||GB Insurance||GB Market|
Return vs Industry: DLG underperformed the UK Insurance industry which returned 3.8% over the past year.
Return vs Market: DLG underperformed the UK Market which returned 11.6% over the past year.
|DLG Average Weekly Movement||2.9%|
|Insurance Industry Average Movement||3.3%|
|Market Average Movement||4.9%|
|10% most volatile stocks in GB Market||9.8%|
|10% least volatile stocks in GB Market||2.6%|
Stable Share Price: DLG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: DLG's weekly volatility (3%) has been stable over the past year.
About the Company
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. It operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. The company 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|
Is DLG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DLG income statement (TTM)|
|Cost of Revenue||UK£1.88b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.27|
|Net Profit Margin||11.28%|
How did DLG perform over the long term?See historical performance and comparison
8.3%Current Dividend Yield
Is Direct Line Insurance Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DLG (£2.69) is trading below our estimate of fair value (£6.79)
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 (13.4x).
PE vs Market: DLG is good value based on its PE Ratio (9.8x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: DLG is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: DLG's PB Ratio (1.2x) is in line with the GB Insurance industry average.
How is Direct Line Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLG's forecast earnings growth (6% per year) is above the savings rate (0.9%).
Earnings vs Market: DLG's earnings (6% per year) are forecast to grow slower than the UK market (12.5% per year).
High Growth Earnings: DLG's earnings are forecast to grow, but not significantly.
Revenue vs Market: DLG's revenue (4.4% per year) is forecast to grow slower than the UK market (4.9% per year).
High Growth Revenue: DLG's revenue (4.4% 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 (16.1%).
How has Direct Line Insurance Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLG has high quality earnings.
Growing Profit Margin: DLG's current net profit margins (11.3%) are lower than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: DLG's earnings have grown by 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 (-5.8%) over the past year, making it difficult to compare to the Insurance industry average (18.5%).
Return on Equity
High ROE: DLG's Return on Equity (12.8%) is considered low.
How is Direct Line Insurance Group's financial position?
Financial Position Analysis
Short Term Liabilities: DLG's short term assets (£3.0B) do not cover its short term liabilities (£5.6B).
Long Term Liabilities: DLG's short term assets (£3.0B) exceed its long term liabilities (£776.2M).
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 23.1% to 19.3% over the past 5 years.
Debt Coverage: DLG's debt is well covered by operating cash flow (46.3%).
Interest Coverage: DLG's interest payments on its debt are well covered by EBIT (16.7x coverage).
What is Direct Line Insurance Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLG's dividend (8.28%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).
High Dividend: DLG's dividend (8.28%) is in the top 25% of dividend payers in the UK market (4.14%)
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.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.3%), DLG's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DLG's dividends in 3 years are forecast to be covered by earnings (82.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Penny James (52 yo)
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 ($USD4.24M) is above average for companies of similar size in the UK market ($USD1.77M).
Compensation vs Earnings: Penny's compensation has been consistent with company performance over the past year.
Experienced Management: DLG's management team is considered experienced (2.5 years average tenure).
Experienced Board: DLG's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DLG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Direct Line Insurance Group plc's employee growth, exchange listings and data sources
- Name: Direct Line Insurance Group plc
- Ticker: DLG
- Exchange: LSE
- Founded: 1985
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£3.593b
- Shares outstanding: 1.32b
- Website: https://www.directlinegroup.co.uk
Number of Employees
- Direct Line Insurance Group plc
- Churchill Court
- Westmoreland Road
- Greater London
- BR1 1DP
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/02 21:47|
|End of Day Share Price||2021/12/02 00:00|
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.