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1. Company Snapshot

1.a. Company Description

Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros engages in insurance and reinsurance business in Spain and Portugal.It offers motor, home, health, and other insurance products, as well as other non-life insurance products under the Línea Directa, Penelope Seguros, Aprecio, and Vivaz Seguros brands.The company also provides vehicle inspection and repair, and roadside assistance, as well as sundry services related to motorcycles; insurance brokerage services; and claims management, claims-related repair work, and other specialized household services.


It distributes its products through telephone and internet sales channels.The company was formerly known as Bankinter Aseguradora Directa, S.A. Compañía de Seguros y Reaseguros and changed its name to Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros in January 1995.Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros was incorporated in 1994 and is based in Tres Cantos, Spain.

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1.b. Last Insights on LDA

Línea Directa Aseguradora, S.A. faces headwinds from a challenging European market, characterized by disappointing trade frameworks and mixed economic signals. The company's recent performance was likely impacted by a complex landscape of monetary policy decisions. Although no recent earnings release data is available, the stock is estimated to be trading up to 34.7% below its intrinsic value, suggesting potential downside risks. European market volatility and uncertainty may continue to weigh on the company's short-term prospects.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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3 European Stocks Estimated To Be Trading Up To 34.7% Below Intrinsic Value

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3 European Stocks Estimated To Be Trading Up To 33.8% Below Intrinsic Value

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January 2025's Noteworthy Stocks Estimated Below Fair Value

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3 Stocks That Could Be Trading Below Their Estimated Value

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3 Stocks Estimated To Be Up To 40.9% Below Intrinsic Value

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.57%)

6. Segments

Automobiles

Expected Growth: 3.5%

The 3.5% growth in Automobiles from Línea Directa Aseguradora, S.A. is driven by increasing vehicle sales, rising demand for insurance products, and a growing middle class in Spain. Additionally, the company's digitalization efforts and expansion into new regions have contributed to the growth.

Home

Expected Growth: 3.8%

The 3.8% growth of Home insurance from Línea Directa Aseguradora, S.A. is driven by increasing demand for home protection, rising property values, and a growing middle class in Spain. Additionally, the insurer's digitalization efforts, competitive pricing, and expanded distribution channels have contributed to the growth.

Health

Expected Growth: 4.2%

Línea Directa Aseguradora's 4.2% growth in Health is driven by increasing demand for private healthcare, favorable demographics, and a strong brand reputation. Additionally, the company's strategic partnerships, expanded product offerings, and effective cost management have contributed to its growth momentum.

Other Business Insurers

Expected Growth: 3.2%

Línea Directa Aseguradora's 3.2% growth in Other Business Insurers is driven by increasing demand for specialized insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and customer experience has improved sales and retention rates, contributing to the growth.

7. Detailed Products

Car Insurance

Comprehensive insurance coverage for vehicles, including third-party liability, damage to the vehicle, and personal accidents.

Home Insurance

Insurance coverage for homes and contents, including protection against fire, theft, and natural disasters.

Life Insurance

Insurance coverage that provides a financial safety net for loved ones in the event of death or terminal illness.

Health Insurance

Comprehensive medical coverage, including hospitalization, surgery, and outpatient care.

Travel Insurance

Insurance coverage for travelers, including trip cancellations, medical emergencies, and luggage loss or damage.

Motorcycle Insurance

Specialized insurance coverage for motorcycles, including liability, damage, and personal accidents.

8. Línea Directa Aseguradora, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Línea Directa Aseguradora, S.A. is medium due to the presence of alternative insurance providers in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the market, giving Línea Directa Aseguradora, S.A. an upper hand in negotiations.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but Línea Directa Aseguradora, S.A. has some level of dependence on them.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the insurance industry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.47%
Debt Cost 3.95%
Equity Weight 98.53%
Equity Cost 5.22%
WACC 5.20%
Leverage 1.50%

11. Quality Control: Línea Directa Aseguradora, S.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Paragon Banking

A-Score: 7.4/10

Value: 8.2

Growth: 8.7

Quality: 6.6

Yield: 8.1

Momentum: 6.0

Volatility: 7.0

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FBD

A-Score: 6.9/10

Value: 6.7

Growth: 5.1

Quality: 8.1

Yield: 6.2

Momentum: 7.5

Volatility: 7.7

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Skjern Bank

A-Score: 6.8/10

Value: 7.8

Growth: 5.4

Quality: 8.1

Yield: 3.8

Momentum: 9.5

Volatility: 6.3

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Línea Directa

A-Score: 6.3/10

Value: 5.2

Growth: 2.4

Quality: 8.4

Yield: 6.2

Momentum: 8.0

Volatility: 7.7

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Thurgauer KB

A-Score: 5.9/10

Value: 5.0

Growth: 2.0

Quality: 5.5

Yield: 3.8

Momentum: 9.0

Volatility: 10.0

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SpareBank 1 Sørøst-Norge

A-Score: 4.7/10

Value: 5.8

Growth: 4.3

Quality: 5.5

Yield: 5.0

Momentum: 4.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.11$

Current Price

1.11$

Potential

-0.00%

Expected Cash-Flows