Direct Line Insurance Group (DIISY) AI Stock Analysis

• Market Cap: $5.35B
• Dividend Yield: 3.06%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.49
• Revenue Growth: 29.54%
• EPS Growth: -27.98%
• Country: US
• Employees: 9,053
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.44
• Shares Outstanding: 327,847,050
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.17
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $16.50 ▼(-0.18%Downside)

Direct Line Insurance Group's overall stock score reflects a mixed financial performance with strong technical momentum. While the balance sheet is robust, profitability and cash flow issues present challenges. The stock shows positive technical indicators, suggesting potential short-term gains. However, high valuation limits long-term upside potential.

Direct Line Insurance Group Business Overview & Revenue Model

Company Description

Direct Line Insurance Group (DIISY) is a leading provider of personal and commercial insurance products in the United Kingdom. Established in 1985, the company operates across several sectors, including motor, home, rescue, pet, travel, and commercial insurance. It is renowned for its direct-to-consumer approach, offering insurance services through various channels such as online platforms and telephone operations.

How the Company Makes Money

Direct Line Insurance Group primarily generates revenue through the underwriting and sale of insurance policies. The company's key revenue streams include premiums from motor insurance, which is its largest segment, followed by home insurance, rescue and recovery services, and other types of personal and commercial insurance products. Direct Line benefits from a direct distribution model, allowing it to maintain a closer relationship with its customers, enhance brand loyalty, and reduce dependency on intermediaries. Additionally, the company earns investment income from its portfolio of financial assets, which provides a secondary revenue stream. Strategic partnerships, such as those with automotive manufacturers and financial service providers, also contribute to its earnings by expanding market reach and offering tailored insurance solutions.

Direct Line Insurance Group Financial Statement Overview

Summary

Direct Line Insurance Group faces challenges with inconsistent profitability and cash flow issues, particularly in 2024. While the balance sheet remains strong, the income statement and cash flow trends suggest a need for improved financial performance and cash management strategies.

Income Statement

The income statement reveals fluctuating revenues, with a recent decline in 2024. Net income and gross profit margins show instability, reflecting challenges in cost management and revenue generation. Despite a strong EBITDA margin in 2024, overall profitability remains volatile.

Balance Sheet

The balance sheet is robust, with a healthy equity ratio indicating strong capital structure. However, there has been a decrease in cash reserves over recent years. The debt-to-equity ratio is manageable, suggesting controlled leverage.

Cash Flow

Cash flow analysis shows significant deterioration in 2024 with negative operating and free cash flows, indicating potential liquidity issues. The free cash flow to net income ratio is concerning, highlighting cash generation problems.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.40M	6.00M	109.30M	198.80M	222.70M
Gross Profit	170.30M	-8.30M	88.30M	162.00M	187.60M
EBITDA	357.90M	400.90M	-186.80M	540.50M	531.10M
Net Income	162.60M	222.90M	-231.90M	343.70M	367.20M
Balance Sheet
Total Assets	8.80B	8.42B	8.93B	8.38B	9.62B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.79B	1.02B	5.04B	5.32B
Total Debt	439.60M	447.30M	405.40M	657.00M	720.90M
Total Liabilities	6.31B	6.01B	6.29B	7.04B	6.58B
Stockholders Equity	2.48B	2.40B	2.19B	2.80B	3.05B
Cash Flow
Free Cash Flow	-471.00M	261.90M	680.10M	300.30M	423.90M
Operating Cash Flow	-364.50M	404.90M	800.20M	439.00M	584.70M
Investing Cash Flow	-106.50M	398.30M	-100.80M	-138.70M	-161.00M
Financing Cash Flow	-129.60M	-51.80M	-657.50M	-572.00M	-151.80M

Direct Line Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIISY, the sentiment is Positive. The current price of 16.53 is below the 20-day moving average (MA) of 16.55, above the 50-day MA of 16.10, and above the 200-day MA of 12.89, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIISY.

Direct Line Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.61B	26.96	20.76%	―	46.90%	43.99%
THG	77 Outperform	$5.87B	13.62	15.74%	2.20%	3.09%	168.29%
MCY	75 Outperform	$3.66B	12.78	16.71%	1.92%	16.64%	33.06%
SIGI	73 Outperform	$5.24B	23.52	7.48%	1.76%	13.37%	-35.09%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%
DIISY	61 Neutral	$5.35B	30.06	6.07%	3.06%	29.54%	-27.98%
KMPR	58 Neutral	$3.91B	11.42	12.57%	2.10%	-6.08%	―