DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
NASDAQ:DGICA - Nasdaq - US2577012014 - Common Stock - Currency: USD
DGICA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. DGICA has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on DGICA. DGICA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DGICA was profitable.
DGICA had a positive operating cash flow in the past year.
DGICA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DGICA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DGICA (3.44%) is better than 70.92% of its industry peers.
Looking at the Return On Equity, with a value of 13.67%, DGICA is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.62%, DGICA is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
| 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
With a Profit Margin value of 8.34%, DGICA perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
DGICA's Profit Margin has declined in the last couple of years.
DGICA's Operating Margin of 10.36% is in line compared to the rest of the industry. DGICA outperforms 46.81% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DGICA 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
DGICA has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
DGICA has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. DGICA outperforms 80.85% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGICA is not too dependend on debt financing.
The Debt to Equity ratio of DGICA (0.06) is better than 81.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC8.62%
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 1542.86% 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.
DGICA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.37%.
The Revenue has been growing slightly by 4.03% on average over the past years.
EPS 1Y (TTM)1542.86%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%290.91%
Revenue 1Y (TTM)3.37%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%0.15%
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.
Based on estimates for the next years, DGICA will show a small growth in Revenue. The Revenue will grow by 2.27% on average per year.
EPS Next Y39.56%
EPS Next 2Y21.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.2%
Revenue Next 2Y2.18%
Revenue Next 3Y2.27%
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
DGICA is valuated cheaply with a Price/Earnings ratio of 7.52.
Based on the Price/Earnings ratio, DGICA is valued a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
DGICA is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.39, the valuation of DGICA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGICA indicates a somewhat cheap valuation: DGICA is cheaper than 65.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, DGICA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGICA indicates a somewhat cheap valuation: DGICA is cheaper than 73.76% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DGICA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 5.63 |
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 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)1.14
EPS Next 2Y21.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGICA has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, DGICA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, DGICA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of DGICA has a limited annual growth rate of 3.21%.
DGICA has been paying a dividend for at least 10 years, so it has 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.
DGICA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.95%
EPS Next 2Y21.74%
EPS Next 3YN/A
NASDAQ:DGICA (8/19/2025, 2:06:30 PM)
17.2903
+0.18 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.36%
Inst Owner Change8.05%
Ins Owners1.93%
Ins Owner Change5.95%
Market Cap631.27M
Analysts44
Price Target20.91 (20.93%)
Short Float %1.56%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)5.13%
PT rev (3m)7.89%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)9.23%
EPS NY rev (1m)0%
EPS NY rev (3m)24.18%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-7.46%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 8.39 | ||
| P/S | 0.64 | ||
| P/FCF | 8.01 | ||
| P/OCF | 8.01 | ||
| P/B | 1.04 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)2.3
EY13.3%
EPS(NY)2.06
Fwd EY11.91%
FCF(TTM)2.16
FCFY12.49%
OCF(TTM)2.16
OCFY12.49%
SpS27.22
BVpS16.59
TBVpS16.41
PEG (NY)0.19
PEG (5Y)1.14
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
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-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
WACC8.62%
ROIC/WACC0.42
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)1542.86%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%290.91%
EPS Next Y39.56%
EPS Next 2Y21.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.37%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%0.15%
Revenue Next Year-0.2%
Revenue Next 2Y2.18%
Revenue Next 3Y2.27%
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%