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Linea Directa Aseguradora SA
(BME:LDA)
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Rating:83Outperform
Price Target:
€1.50
▲(19.05% Upside)
Action:Reiterated
Date:07/27/26
The score is driven primarily by strong financial quality (very conservative leverage, solid ROE, and improving cash generation) and a positive earnings-call read-through showing premium growth, better underwriting metrics, and strong solvency. Valuation is supportive with a mid-teens P/E and ~3.24% yield, while the technical setup is constructive but less fully validated due to missing momentum indicators. Key risks tempering the score are revenue volatility, the still-unprofitable Health segment, and sensitivity to inflation and seasonal claims.
Positive Factors
Very conservative balance sheet / low leverage
Extremely low debt and rising equity give management durable financial flexibility: supports underwriting through loss cycles, funds dividends or buybacks, and reduces refinancing risk. This conservatism strengthens solvency buffers and regulatory compliance over the medium term.
Negative Factors
Top-line volatility and prior loss year
Sharp swings in revenue and a prior loss year undermine predictability of underwriting results and capital planning. Volatile top line complicates pricing and reserving, increasing the chance that management must adjust rates or capital buffers during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Very conservative balance sheet / low leverage
Extremely low debt and rising equity give management durable financial flexibility: supports underwriting through loss cycles, funds dividends or buybacks, and reduces refinancing risk. This conservatism strengthens solvency buffers and regulatory compliance over the medium term.
Read all positive factors
Linea Directa Aseguradora SA (LDA) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€1.41B
Dividend Yield3.4%
Average Volume (3M)261.20K
Price to Earnings (P/E)10.4
Beta (1Y)0.63
Revenue Growth10.28%
EPS Growth13.83%
CountryES
Employees2,373
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.12
Shares Outstanding1,088,416,900
10 Day Avg. Volume233,348
30 Day Avg. Volume261,203
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)3.01
Price to Sales (P/S)1.09
P/FCF Ratio6.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)€1.22B
Linea Directa Aseguradora SA Business Overview & Revenue Model
Company Description
Línea Directa Aseguradora, S.A., based in Tres Cantos, Spain, is an insurance and reinsurance enterprise conducting business throughout Spain and Portugal. Founded in 1994, the company delivers a comprehensive portfolio of non-life insurance offer...
How the Company Makes Money
LDA makes money primarily by underwriting insurance policies and earning more in premiums and investment/other income than it pays out in claims and operating expenses. Its key revenue stream is gross written premiums from customers who purchase p...
Linea Directa Aseguradora SA Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 16, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operating and capital story: double‑digit increases in net profit, strong premium growth across lines, improved combined ratios and a fortified Solvency II ratio (196.3%). Efficiency gains, higher digital sales and a resilient Motor franchise underpin the upbeat tone. Key risks flagged include a still loss‑making Health line (combined ratio 125.1%), a temporary hit to investment income from a real estate renovation (net investment result ‑1.8%), slower average premium increases (~2%) amid inflationary monitoring, and sensitivity to atmospheric/seasonal events. On balance, the positive growth, margin improvement and very strong solvency position outweigh the noted challenges.Positive Updates
Strong Premium Growth and Portfolio Expansion
Gross written premiums reached EUR 609.3 million, up 9.2% year‑on‑year. The customer portfolio increased to 3.86 million risks, +7.8% year‑on‑year, with close to 278,000 risks added over the last 12 months (around 60,000 added in Q2).
Negative Updates
Health Line Still Technically Loss‑Making
Despite strong top‑line growth, health combined ratio remained elevated at 125.1% in H1 (improved 8.6 pp year‑on‑year), indicating the segment is still working toward technical breakeven.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Premium Growth and Portfolio Expansion
Gross written premiums reached EUR 609.3 million, up 9.2% year‑on‑year. The customer portfolio increased to 3.86 million risks, +7.8% year‑on‑year, with close to 278,000 risks added over the last 12 months (around 60,000 added in Q2).
Read all positive updates
Company Guidance
Management's guidance emphasized three clear priorities—maintain profitability growth, protect technical margins and keep leveraging efficiency—while promising active monitoring and price adjustments if inflation pressures increase (current average premium upside ~2% on new business). They signposted continued shareholder distributions (two interim payments during the year plus a complementary year‑end payment, final payout subject to the Board), and digital sales momentum (~13–14% of new production). Key metrics they said they will defend include: H1 gross written premiums €609.3m (+9.2% YoY), customer portfolio +7.8% (~+278k risks YoY; ~+60k in Q2), combined ratio 91.1% H1 (expense ratio 20.2%), net profit €52.1m (+19%), ROE 23.3% and Solvency II 196.3% (after the interim dividend); line highlights to protect were Motor premiums >€490m (+9.8%) with motor combined ratio 91.1% H1, Home combined ratio 86.6% H1, Health premiums €28.9m (+17.7%) with combined ratio 125.1% improving 8.6pp, investment return 275bps (fixed‑income duration 3.5y) and reported net investment result -1.8% (≈+5% excl. a real‑estate one‑off).Linea Directa Aseguradora SA Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.12B | 998.73M | 966.76M | 942.48M | 923.02M |
| Gross Profit | 957.31M | 1.12B | 998.73M | 966.76M | 942.48M | 882.70M |
| EBITDA | 124.32M | 114.14M | 83.31M | -3.83M | 83.57M | 145.93M |
| Net Income | 135.99M | 85.71M | 64.22M | -4.39M | 63.13M | 110.14M |
Balance Sheet | ||||||
| Total Assets | 1.47B | 1.37B | 1.24B | 1.13B | 1.20B | 1.37B |
| Cash, Cash Equivalents and Short-Term Investments | 23.88M | 16.99M | 999.95M | 919.09M | 795.84M | 980.77M |
| Total Debt | 1.64M | 4.19M | 2.83M | 2.82M | 3.77M | 4.53M |
| Total Liabilities | 1.04B | 970.25M | 877.82M | 812.29M | 904.91M | 990.20M |
| Stockholders Equity | 430.30M | 404.45M | 358.32M | 313.04M | 300.33M | 378.27M |
Cash Flow | ||||||
| Free Cash Flow | 216.49M | 178.83M | 59.75M | 40.80M | 64.07M | 107.97M |
| Operating Cash Flow | 218.61M | 182.57M | 82.40M | 62.49M | 70.88M | 117.64M |
| Investing Cash Flow | -178.29M | -132.41M | -77.62M | -69.33M | 52.85M | 66.05M |
| Financing Cash Flow | -55.50M | -50.19M | -30.13M | -3.29M | -191.63M | -201.28M |
Linea Directa Aseguradora SA Technical Analysis
Positive
1.26
Price Trends
1.21
Positive
1.20
Positive
1.16
Positive
Market Momentum
0.02
Positive
60.02
Neutral
59.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:LDA, the sentiment is Positive. The current price of 1.26 is below the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.21, and above the 200-day MA of 1.16, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 59.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:LDA.
Linea Directa Aseguradora SA Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | €1.41B | 10.38 | 32.79% | 3.24% | 10.28% | 13.83% | |
75 Outperform | €138.06B | 12.85 | 19.31% | 3.53% | -8.98% | 6.81% | |
69 Neutral | €188.53B | 11.63 | 15.48% | 1.96% | 8.23% | 24.66% | |
69 Neutral | €9.07B | 13.91 | 9.44% | 8.48% | -6.69% | 5.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ES:LDA
Linea Directa Aseguradora SA
1.30
>-0.01
-0.31%
ES:SAN
Banco Santander
12.91
4.94
61.95%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
24.80
9.42
61.24%
ES:UNI
Unicaja Banco SA
3.56
1.29
56.72%
Linea Directa Aseguradora SA Corporate Events
Línea Directa to Present First-Half 2026 Results via Webcast and Press Conference
Jul 21, 2026
Línea Directa Aseguradora will publish its financial results for the first half of 2026 before the market opens on 27 July, accompanied by an investor presentation in English via webcast. The materials and a recording will be accessible on it...
Línea Directa Aseguradora Sets Date for H1 2026 Results Presentation
Jul 21, 2026
Línea Directa Aseguradora will release its financial results for the first half of 2026 on 27 July, before the market opens, underscoring the importance of timely disclosure to investors. The insurer will publish an English-language results p...
Linea Directa to unveil first-half 2026 results with investor webcast and CEO press briefing
Jul 21, 2026
Linea Directa Aseguradora SA will publish its results for the first half of 2026 before markets open on 27 July, accompanied by an English-language investor and analyst webcast hosted on its corporate website and mirrored on the CNMV site. A recor...
Línea Directa details Q2 2026 treasury trades under liquidity contract
Jul 7, 2026
Línea Directa Aseguradora has reported second‑quarter 2026 activity under its CNMV‑regulated liquidity contract for treasury shares, covering trades between 1 April and 30 June. The insurer opened the period with 460,495 shares an...
Linea Directa Aseguradora Announces First Interim Dividend Against 2026 Results
Jun 26, 2026
Linea Directa Aseguradora’s board has approved a first interim cash dividend charged against 2026 results, set at EUR 0.016548 gross per share, for a total payout of about EUR 18 million, with amounts corresponding to treasury shares realloc...
Línea Directa Aseguradora Releases Q1 2026 Results Presentation for Investors
Apr 28, 2026
Línea Directa Aseguradora has released a presentation on its financial results for the first quarter of 2026, prepared under IFRS 17 and IFRS 9. The materials will be used as the basis for a webcast with analysts and investors, underscoring t...
Línea Directa Boosts Q1 2026 Profit on Strong Premium and Customer Growth
Apr 28, 2026
Línea Directa Aseguradora reported a strong start to 2026, with first-quarter net profit rising 12.3% year-on-year to €23.4 million, driven by customer and premium growth across all business lines and improved margins. Earned premiums i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.