18.16 USD
-0.01 (-0.06%)
18.16 USD
0 (0%)
Overall DGICA gets a fundamental rating of 5 out of 10. We evaluated DGICA against 148 industry peers in the Insurance industry. DGICA has an average financial health and profitability rating. 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
- In the past year DGICA was profitable.
- In the past year DGICA had a positive cash flow from operations.
- DGICA had positive earnings in 4 of the past 5 years.
- DGICA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DGICA has a better Return On Assets (3.56%) than 70.95% of its industry peers.
- With a decent Return On Equity value of 13.73%, DGICA is doing good in the industry, outperforming 64.86% of the companies in the same industry.
- DGICA has a Return On Invested Capital of 3.77%. This is in the better half of the industry: DGICA outperforms 64.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 13.73% | ||
| ROIC | 3.77% |
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
- DGICA has a Profit Margin of 8.72%. This is comparable to the rest of the industry: DGICA outperforms 54.73% of its industry peers.
- In the last couple of years the Profit Margin of DGICA has declined.
- The Operating Margin of DGICA (10.89%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DGICA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 8.72% | ||
| 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.
- Compared to 5 years ago, DGICA has more shares outstanding
- 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.
- DGICA has a better Debt to FCF ratio (0.40) than 87.16% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that DGICA is not too dependend on debt financing.
- DGICA has a better Debt to Equity ratio (0.06) than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC8.55%
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.
- Measured over the past 5 years, DGICA shows a small growth in Earnings Per Share. The EPS has been growing by 6.60% on average per year.
- The Revenue has been growing slightly by 0.89% 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)300%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%13.04%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%-2.31%
3.2 Future
- The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y59.32%
EPS Next 2Y22.5%
EPS Next 3Y15.88%
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.
- 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
- The Price/Earnings ratio is 7.69, which indicates a rather cheap valuation of DGICA.
- DGICA's Price/Earnings ratio is a bit cheaper when compared to the industry. DGICA is cheaper than 74.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, DGICA is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.71 indicates a reasonable valuation of DGICA.
- DGICA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGICA is cheaper than 64.19% of the companies in the same industry.
- DGICA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
- 70.27% of the companies in the same industry are more expensive than DGICA, based on the Enterprise Value to EBITDA ratio.
- DGICA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.52 | ||
| EV/EBITDA | 5.95 |
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.
- DGICA's earnings are expected to grow with 15.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)1.17
EPS Next 2Y22.5%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.88%, DGICA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.41, DGICA pays a bit more dividend than its industry peers.
- DGICA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 28.85% of its income as dividend. This is a sustainable payout ratio.
- DGICA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.85%
EPS Next 2Y22.5%
EPS Next 3Y15.88%
DONEGAL GROUP INC-CL A / DGICA FAQ
What is the fundamental rating for DGICA stock?
ChartMill assigns a fundamental rating of 5 / 10 to DGICA.
What is the valuation status for 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 is the valuation of DONEGAL GROUP INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DONEGAL GROUP INC-CL A (DGICA) is 7.69 and the Price/Book (PB) ratio is 1.06.
Can you provide the dividend sustainability for DGICA stock?
The dividend rating of DONEGAL GROUP INC-CL A (DGICA) is 8 / 10 and the dividend payout ratio is 28.85%.