DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
NASDAQ:DGICA - Nasdaq - US2577012014 - Common Stock - Currency: USD
Taking everything into account, DGICA scores 5 out of 10 in our fundamental rating. DGICA was compared to 143 industry peers in the Insurance industry. DGICA has only an average score on both its financial health and profitability. DGICA is not valued too expensively and it also shows a decent growth rate. 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.
DGICA had positive earnings in 4 of the past 5 years.
In the past 5 years DGICA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.96%, DGICA is in the better half of the industry, outperforming 68.28% of the companies in the same industry.
DGICA has a Return On Equity of 11.99%. This is comparable to the rest of the industry: DGICA outperforms 59.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.13%, DGICA is in the better half of the industry, outperforming 66.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.99% | ||
| ROIC | 3.13% |
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
The Profit Margin of DGICA (7.06%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DGICA has declined.
DGICA's Operating Margin of 8.79% is in line compared to the rest of the industry. DGICA outperforms 45.52% of its industry peers.
In the last couple of years the Operating Margin of DGICA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.79% | ||
| PM (TTM) | 7.06% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGICA is destroying value.
DGICA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DGICA has been increased compared to 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 0.40, which is an excellent value as it means it would take DGICA, only 0.40 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.40, DGICA belongs to the best of the industry, outperforming 84.83% of the companies in the same industry.
DGICA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
DGICA has a better Debt to Equity ratio (0.06) than 82.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC8.74%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
DGICA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 6500.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.60% on average over the past years.
The Revenue has been growing slightly by 5.29% in the past 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)6500%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%453.85%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%1.67%
3.2 Future
DGICA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.74% yearly.
DGICA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y39.56%
EPS Next 2Y21.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y2.66%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DGICA is valuated reasonably with a Price/Earnings ratio of 9.26.
Based on the Price/Earnings ratio, DGICA is valued a bit cheaper than 70.34% of the companies in the same industry.
DGICA is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.90, the valuation of DGICA can be described as very reasonable.
DGICA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGICA is cheaper than 62.07% of the companies in the same industry.
DGICA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGICA is valued a bit cheaper than 68.97% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGICA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
DGICA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DGICA's earnings are expected to grow with 21.74% in the coming years.
PEG (NY)0.23
PEG (5Y)1.4
EPS Next 2Y21.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGICA has a Yearly Dividend Yield of 3.95%.
Compared to an average industry Dividend Yield of 3.38, DGICA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, DGICA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 33.03% 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.
DP33.03%
EPS Next 2Y21.74%
EPS Next 3YN/A
18.34
-0.16 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.28%
Inst Owner Change-0.1%
Ins Owners1.9%
Ins Owner Change5.87%
Market Cap662.07M
Analysts44
Price Target20.91 (14.01%)
Short Float %1.57%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend0.66
Dividend Growth(5Y)3.21%
DP33.03%
Div Incr Years23
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)105.42%
Min EPS beat(2)92.4%
Max EPS beat(2)118.44%
EPS beat(4)4
Avg EPS beat(4)147.17%
Min EPS beat(4)45.64%
Max EPS beat(4)332.21%
EPS beat(8)4
Avg EPS beat(8)25.06%
EPS beat(12)4
Avg EPS beat(12)-21.34%
EPS beat(16)6
Avg EPS beat(16)-21.99%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)-3.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-2.3%
Revenue beat(16)1
Avg Revenue beat(16)-2.4%
PT rev (1m)5.13%
PT rev (3m)13.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.8%
EPS NY rev (1m)0%
EPS NY rev (3m)24.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.67 | ||
| P/FCF | 7.49 | ||
| P/OCF | 7.49 | ||
| P/B | 1.13 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)1.98
EY10.8%
EPS(NY)2.06
Fwd EY11.23%
FCF(TTM)2.45
FCFY13.35%
OCF(TTM)2.45
OCFY13.35%
SpS27.52
BVpS16.2
TBVpS16.01
PEG (NY)0.23
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.99% | ||
| ROCE | 3.7% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 4.37% | ||
| OM | 8.79% | ||
| PM (TTM) | 7.06% | ||
| GM | N/A | ||
| FCFM | 8.89% |
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
ROICexcg growth 3Y23.46%
ROICexcg 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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 76.26 | ||
| Cash Conversion | 96.79% | ||
| Profit Quality | 126.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.74%
ROIC/WACC0.36
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)6500%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%453.85%
EPS Next Y39.56%
EPS Next 2Y21.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.29%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%1.67%
Revenue Next Year0.2%
Revenue Next 2Y2.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1208.53%
EBIT growth 3Y26.58%
EBIT growth 5Y1.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y93.37%
FCF growth 3Y-4.2%
FCF growth 5Y-2.44%
OCF growth 1Y93.37%
OCF growth 3Y-4.2%
OCF growth 5Y-2.46%