DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
USA - NASDAQ:DGICA - US2577012014 - Common Stock
18.75 USD
+0.37 (+2.01%)
18.75 USD
0 (0%)
Overall DGICA gets a fundamental rating of 5 out of 10. We evaluated DGICA against 147 industry peers in the Insurance industry. There are concerns on the financial health of DGICA while its profitability can be described as average. DGICA has a decent growth rate and is not valued too expensively. DGICA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DGICA had positive earnings in the past year.
DGICA had a positive operating cash flow in the past year.
Of the past 5 years DGICA 4 years were profitable.
Each year in the past 5 years DGICA had a positive operating cash flow.
1.2 Ratios
DGICA has a Return On Assets of 3.44%. This is in the better half of the industry: DGICA outperforms 69.39% of its industry peers.
DGICA has a Return On Equity of 13.67%. This is in the better half of the industry: DGICA outperforms 67.35% of its industry peers.
DGICA has a Return On Invested Capital of 3.62%. This is in the better half of the industry: DGICA outperforms 65.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 13.67% | ||
| ROIC | 3.62% |
ROA(3y)0.76%
ROA(5y)1.17%
ROE(3y)3.28%
ROE(5y)4.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.34%, DGICA is in line with its industry, outperforming 55.10% of the companies in the same industry.
In the last couple of years the Profit Margin of DGICA has declined.
The Operating Margin of DGICA (10.36%) is comparable to the rest of the industry.
DGICA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.36% | ||
| PM (TTM) | 8.34% | ||
| GM | N/A |
OM growth 3Y18.73%
OM growth 5Y-2.32%
PM growth 3Y18.37%
PM growth 5Y-2.43%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
DGICA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DGICA has more shares outstanding
DGICA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DGICA has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of DGICA is 0.44, which is an excellent value as it means it would take DGICA, only 0.44 years of fcf income to pay off all of its debts.
DGICA has a better Debt to FCF ratio (0.44) than 82.31% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGICA is not too dependend on debt financing.
DGICA has a Debt to Equity ratio of 0.06. This is in the better half of the industry: DGICA outperforms 79.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.44%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 300.00% over the past year.
The Earnings Per Share has been growing slightly by 6.60% on average over the past years.
Looking at the last year, DGICA shows a small growth in Revenue. The Revenue has grown by 6.71% in the last year.
DGICA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
EPS 1Y (TTM)300%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%13.04%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%-2.82%
3.2 Future
The Earnings Per Share is expected to grow by 15.42% on average over the next years. This is quite good.
Based on estimates for the next years, DGICA will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y57.46%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue Next Year-0.78%
Revenue Next 2Y1.31%
Revenue Next 3Y2.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.94, the valuation of DGICA can be described as very cheap.
Based on the Price/Earnings ratio, DGICA is valued a bit cheaper than the industry average as 70.07% of the companies are valued more expensively.
DGICA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
Based on the Price/Forward Earnings ratio of 9.10, the valuation of DGICA can be described as reasonable.
Based on the Price/Forward Earnings ratio, DGICA is valued a bit cheaper than 62.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. DGICA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
DGICA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGICA is cheaper than 72.11% of the companies in the same industry.
DGICA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DGICA's earnings are expected to grow with 15.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)1.2
EPS Next 2Y21.74%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, DGICA has a reasonable but not impressive dividend return.
DGICA's Dividend Yield is rather good when compared to the industry average which is at 3.30. DGICA pays more dividend than 81.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, DGICA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of DGICA has a limited annual growth rate of 3.21%.
DGICA has paid a dividend for at least 10 years, which is a reliable track record.
DGICA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.21%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
DGICA pays out 28.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of DGICA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.95%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
18.75
+0.37 (+2.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.57%
Inst Owner Change-0.55%
Ins Owners1.92%
Ins Owner Change7.54%
Market Cap684.56M
Revenue(TTM)989.61M
Net Income(TTM)82.83M
Analysts84
Price Target21.42 (14.24%)
Short Float %1.77%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend0.66
Dividend Growth(5Y)3.21%
DP28.95%
Div Incr Years23
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.27%
Min EPS beat(2)6.14%
Max EPS beat(2)92.4%
EPS beat(4)4
Avg EPS beat(4)137.3%
Min EPS beat(4)6.14%
Max EPS beat(4)332.21%
EPS beat(8)5
Avg EPS beat(8)38.32%
EPS beat(12)5
Avg EPS beat(12)-11.1%
EPS beat(16)6
Avg EPS beat(16)-24.46%
Revenue beat(2)0
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)-2.93%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2%
Revenue beat(12)1
Avg Revenue beat(12)-2.01%
Revenue beat(16)1
Avg Revenue beat(16)-2.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)41.67%
EPS NQ rev (3m)50%
EPS NY rev (1m)7.59%
EPS NY rev (3m)12.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 9.1 | ||
| P/S | 0.69 | ||
| P/FCF | 8.68 | ||
| P/OCF | 8.68 | ||
| P/B | 1.13 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)2.36
EY12.59%
EPS(NY)2.06
Fwd EY10.99%
FCF(TTM)2.16
FCFY11.51%
OCF(TTM)2.16
OCFY11.51%
SpS27.22
BVpS16.59
TBVpS16.41
PEG (NY)0.14
PEG (5Y)1.2
Graham Number29.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 13.67% | ||
| ROCE | 4.28% | ||
| ROIC | 3.62% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 5.01% | ||
| OM | 10.36% | ||
| PM (TTM) | 8.34% | ||
| GM | N/A | ||
| FCFM | 7.93% |
ROA(3y)0.76%
ROA(5y)1.17%
ROE(3y)3.28%
ROE(5y)4.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y23.46%
ROICexgc growth 5Y-3.14%
ROICexc growth 3Y24.98%
ROICexc growth 5Y-2.69%
OM growth 3Y18.73%
OM growth 5Y-2.32%
PM growth 3Y18.37%
PM growth 5Y-2.43%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 77.01 | ||
| Cash Conversion | 73.75% | ||
| Profit Quality | 95.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.44%
ROIC/WACC0.43
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)300%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%13.04%
EPS Next Y57.46%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%-2.82%
Revenue Next Year-0.78%
Revenue Next 2Y1.31%
Revenue Next 3Y2.86%
Revenue Next 5YN/A
EBIT growth 1Y990.28%
EBIT growth 3Y26.58%
EBIT growth 5Y1.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y74.39%
FCF growth 3Y-4.2%
FCF growth 5Y-2.44%
OCF growth 1Y74.39%
OCF growth 3Y-4.2%
OCF growth 5Y-2.46%
DONEGAL GROUP INC-CL A / DGICA FAQ
What is the ChartMill fundamental rating of DONEGAL GROUP INC-CL A (DGICA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DGICA.
What is the valuation status of DONEGAL GROUP INC-CL A (DGICA) stock?
ChartMill assigns a valuation rating of 6 / 10 to DONEGAL GROUP INC-CL A (DGICA). This can be considered as Fairly Valued.
What is the profitability of DGICA stock?
DONEGAL GROUP INC-CL A (DGICA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of DONEGAL GROUP INC-CL A (DGICA) stock?
The Price/Earnings (PE) ratio for DONEGAL GROUP INC-CL A (DGICA) is 7.94 and the Price/Book (PB) ratio is 1.13.
How financially healthy is DONEGAL GROUP INC-CL A?
The financial health rating of DONEGAL GROUP INC-CL A (DGICA) is 3 / 10.