Direct Line Revenue vs. Profit Margin
| DLG Stock | 224.40 65.70 41.40% |
Total Revenue | First Reported 2011-03-31 | Previous Quarter 844.2 M | Current Value 844.2 M | Quarterly Volatility 357 M |
For Direct Line profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Direct Line to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Direct Line Insurance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Direct Line's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Direct Line Insurance over time as well as its relative position and ranking within its peers.
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Direct Line Insurance Profit Margin vs. Revenue 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 as one of the top companies in revenue category among its peers. It also is one of the top stocks in profit margin category among its peers . The ratio of Revenue to Profit Margin for Direct Line Insurance is about 41,621,822,034 . At present, Direct Line's Total Revenue is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Direct Line's earnings, one of the primary drivers of an investment's value.Direct Revenue vs. Competition
Direct Line Insurance is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 2.2 Trillion. Direct Line adds roughly 3.93 Billion in revenue claiming only tiny portion of equities under Financials industry.
Direct Profit Margin vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Direct Line |
| = | 3.93 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Direct Line |
| = | 0.09 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Direct Profit Margin Comparison
Direct Line is currently under evaluation in profit margin 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.8 B | 1.3 B | |
| Operating Income | 200 K | 190 K | |
| Income Before Tax | 277.4 M | 355.5 M | |
| Total Other Income Expense Net | 277.2 M | 291.1 M | |
| Net Loss | -64.5 M | -61.3 M | |
| Net Income | 206.3 M | 296.6 M | |
| Income Tax Expense | 54.5 M | 72 M | |
| Net Income From Continuing Ops | 222.9 M | 259.6 M | |
| Net Interest Income | -14.5 M | -15.2 M | |
| Interest Income | 171.8 M | 159.8 M | |
| Change To Netincome | 720 K | 684 K |
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.
Use Direct Line in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Direct Line position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Direct Line will appreciate offsetting losses from the drop in the long position's value.Direct Line Pair Trading
Direct Line Insurance Pair Trading Analysis
The ability to find closely correlated positions to Direct Line could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direct Line when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direct Line - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direct Line Insurance to buy it.
The correlation of Direct Line is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direct Line moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direct Line Insurance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Direct Line can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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?
Run Emerging Markets Funds Thematic Idea Now
Emerging Markets Funds
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 44 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 Emerging Markets Funds Theme or any other thematic opportunities.
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Other Information on Investing in Direct Stock
To fully project Direct Line's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Direct Line Insurance at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Direct Line's income statement, its balance sheet, and the statement of cash flows.