Direct Line Profitability Analysis
Direct Line Insurance Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Direct Line's current stock value. Our valuation model uses many indicators to compare Direct Line value to that of its competitors to determine the firm's financial worth. Direct Line Insurance is rated # 3 in return on equity category among its peers. It also is rated # 3 in return on asset category among its peers reporting about 0.24 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Direct Line Insurance is roughly 4.09 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Direct Line by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Direct Line's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Direct Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Direct Return On Asset Comparison
Direct Line is currently under evaluation in return on asset category among its peers.
Direct Line Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Direct Line, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Direct Line will eventually generate negative long term returns. The profitability progress is the general direction of Direct Line's change in net profit over the period of time. It can combine multiple indicators of Direct Line, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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.
Direct Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Direct Line. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Direct Line position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Direct Line's important profitability drivers and their relationship over time.
Direct Line Earnings per Share Projection vs Actual
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Our tools can tell you how much better you can do entering a position in Direct Line without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Use Investing Themes to Complement your Direct Line position
In addition to having Direct Line in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cash Cows Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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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