DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
USA - NASDAQ:DGICA - US2577012014 - Common Stock
19.25 USD
-0.11 (-0.57%)
19.25 USD
0 (0%)
DGICA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. There are concerns on the financial health of DGICA while its profitability can be described as average. DGICA is not valued too expensively and it also shows a decent growth rate. Finally 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.
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 69.18% of its industry peers.
DGICA has a better Return On Equity (13.67%) than 67.81% of its industry peers.
DGICA's Return On Invested Capital of 3.62% is fine compared to the rest of the industry. DGICA outperforms 68.49% 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
The Profit Margin of DGICA (8.34%) is comparable to the rest of the industry.
DGICA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.36%, DGICA is in line with its industry, outperforming 46.58% of the companies in the same industry.
In the last couple of years the Operating Margin of DGICA has declined.
| 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
Compared to 5 years ago, DGICA has more shares outstanding
DGICA has a better debt/assets ratio than last year.
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 better Debt to FCF ratio (0.44) than 81.51% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGICA is not too dependend on debt financing.
DGICA's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. DGICA outperforms 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.48%
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 1542.86%, which is quite impressive.
DGICA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.60% yearly.
DGICA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.37%.
DGICA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
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
Based on estimates for the next years, DGICA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.42% on average per year.
DGICA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y37.09%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue Next Year-0.78%
Revenue Next 2Y1.31%
Revenue Next 3Y2.27%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.37.
Compared to the rest of the industry, the Price/Earnings ratio of DGICA indicates a somewhat cheap valuation: DGICA is cheaper than 72.60% of the companies listed in the same industry.
DGICA is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.34, the valuation of DGICA can be described as very reasonable.
61.64% of the companies in the same industry are more expensive than DGICA, based on the Price/Forward Earnings ratio.
DGICA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
DGICA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGICA is cheaper than 69.86% 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 | 8.92 | ||
| EV/EBITDA | 6.37 |
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 15.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)1.27
EPS Next 2Y21.74%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, DGICA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.44, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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
28.95% of the earnings are spent on dividend by DGICA. This is a low number and 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%
19.25
-0.11 (-0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.36%
Inst Owner Change8.27%
Ins Owners1.93%
Ins Owner Change6.27%
Market Cap702.82M
Analysts44
Price Target20.91 (8.62%)
Short Float %1.35%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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)5.13%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)0%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.34 | ||
| P/S | 0.71 | ||
| P/FCF | 8.92 | ||
| P/OCF | 8.92 | ||
| P/B | 1.16 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)2.3
EY11.95%
EPS(NY)2.06
Fwd EY10.7%
FCF(TTM)2.16
FCFY11.22%
OCF(TTM)2.16
OCFY11.22%
SpS27.22
BVpS16.59
TBVpS16.41
PEG (NY)0.23
PEG (5Y)1.27
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
WACC8.48%
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)1542.86%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%290.91%
EPS Next Y37.09%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
EPS Next 5YN/A
Revenue 1Y (TTM)3.37%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%0.15%
Revenue Next Year-0.78%
Revenue Next 2Y1.31%
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%