Direct Line Insurance Group plc (LSE:DLG) currently has a Value Composite score of 17. The Value Composite One (VC1) is a method that investors use to determine a company’s value. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Direct Line Insurance Group plc (LSE:DLG) is 10.
Even with the stock market still riding high, investors may be looking for some bargain stocks to add to the portfolio. Although nobody can say for certain if stocks will continue to climb the ladder, investors may be preparing for the temporary dips in order to get into some positions at more reasonable prices. Always being prepared can help make the tough decisions a bit easier to stomach when the time comes. Coming at the stock market from multiple angles may help investors spot some future winners.
Ever wonder how investors predict positive share price momentum? The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average. The SMA 50/200 for Direct Line Insurance Group plc (LSE:DLG) is currently 0.92842. If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum. If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.
The Return on Invested Capital (aka ROIC) for Direct Line Insurance Group plc (LSE:DLG) is 0.108085. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Direct Line Insurance Group plc (LSE:DLG) is 3.978292. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Direct Line Insurance Group plc (LSE:DLG) is 0.067251.
Individual investors may tend to become more bullish at market tops and more bearish at the bottoms. This goes against the buy low sell high mantra that is widely preached in the investing community. The two emotions that come into play here are greed and fear. Investors tend to get greedy when they see stocks flying to new highs. It can be very tempting to get in on a name that has been running hot for a time. On the other side of the coin, investors often get fearful when the market is tanking. The fear of losing becomes prevalent when this occurs, and investors may be tempted to sell like the rest. Although this goes against logic, many investors will still end up buying high and selling low.
In taking a look at some other notable technicals, Direct Line Insurance Group plc (LSE:DLG)’s ROIC is 0.108085. The ROIC 5 year average is 0.067251 and the ROIC Quality ratio is 3.978292. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
We also note that Direct Line Insurance Group plc (LSE:DLG) has a Shareholder Yield of 0.097442 and a Shareholder Yield (Mebane Faber) of 0.05847. The first value is calculated by adding the dividend yield to the percentage of repurchased shares.
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Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines.
Direct Line Insurance Group plc (LSE:DLG) has a current MF Rank of 3553. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
We can now take aquick look at some historical stock price index data. Direct Line Insurance Group plc (LSE:DLG) presently has a 10 month price index of 1.02284. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.
A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.02601, the 24 month is 0.97090, and the 36 month is 1.05155. Narrowing in a bit closer, the 5 month price index is 0.91639, the 3 month is 0.95608, and the 1 month is currently 1.01924.
Shifting gears, we can see that Direct Line Insurance Group plc (LSE:DLG) has a Q.i. Value of 7.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.
Gross Margin score
Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past.
Stock market investors may be taking some time to review portfolio allocation. Rebalancing the portfolio may be necessary for some but not for others. Rebalancing the portfolio may help provide a strategy for when the market becomes highly volatile. This process may also help keep the investor buying low and selling high. Investors may also be looking at some different stocks to explore in the next few months. This may include reviewing some foreign markets or some new sectors that were previously not included in the stock portfolio. Completing all the necessary research is typically a good way to start building a more comprehensive pool of diversified stocks.
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Direct Line Insurance Group plc (LSE:DLG) is 0.079653.