DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
NASDAQ:DGICA - Nasdaq - US2577012014 - Common Stock - Currency: USD
Overall DGICA gets a fundamental rating of 5 out of 10. We evaluated DGICA against 142 industry peers in the Insurance industry. Both the profitability and the financial health of DGICA get a neutral evaluation. Nothing too spectacular is happening here. 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.
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's Return On Assets of 2.96% is fine compared to the rest of the industry. DGICA outperforms 69.01% of its industry peers.
DGICA has a Return On Equity of 11.99%. This is comparable to the rest of the industry: DGICA outperforms 59.86% of its industry peers.
DGICA has a Return On Invested Capital of 3.13%. This is in the better half of the industry: DGICA outperforms 66.90% of its industry peers.
| 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
DGICA has a Profit Margin (7.06%) which is in line with its industry peers.
DGICA's Profit Margin has declined in the last couple of years.
The Operating Margin of DGICA (8.79%) 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 | 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
DGICA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DGICA has been increased compared to 1 year ago.
DGICA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DGICA has an improved debt to assets ratio.
2.2 Solvency
DGICA has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
DGICA's Debt to FCF ratio of 0.40 is amongst the best of the industry. DGICA outperforms 84.51% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGICA is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.06, DGICA belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC8.78%
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 6500.00% over the past year.
The Earnings Per Share has been growing slightly by 6.60% on average over the past years.
DGICA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.29%.
Measured over the past years, DGICA shows a small growth in Revenue. The Revenue has been growing by 4.03% on average per year.
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
The Earnings Per Share is expected to grow by 21.74% on average over the next years. This is a very strong growth
DGICA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y35.23%
EPS Next 2Y21.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y2.09%
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
A Price/Earnings ratio of 9.84 indicates a reasonable valuation of DGICA.
Based on the Price/Earnings ratio, DGICA is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
DGICA is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.46, which indicates a very decent valuation of DGICA.
The rest of the industry has a similar Price/Forward Earnings ratio as DGICA.
When comparing the Price/Forward Earnings ratio of DGICA to the average of the S&P500 Index (22.17), we can say DGICA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGICA is valued a bit cheaper than 64.79% of the companies 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 | 7.96 | ||
| EV/EBITDA | 7.38 |
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)0.28
PEG (5Y)1.49
EPS Next 2Y21.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, DGICA has a reasonable but not impressive dividend return.
DGICA's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.38, DGICA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.21%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
33.03% 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.
DP33.03%
EPS Next 2Y21.74%
EPS Next 3YN/A
19.485
-0.46 (-2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.55%
Inst Owner Change7.54%
Ins Owners1.67%
Ins Owner Change13.86%
Market Cap703.41M
Analysts44
Price Target19.38 (-0.54%)
Short Float %1.07%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)2.7%
PT rev (3m)15.15%
EPS NQ rev (1m)5.13%
EPS NQ rev (3m)54.72%
EPS NY rev (1m)20.33%
EPS NY rev (3m)40.38%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-4.74%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-5.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.46 | ||
| P/S | 0.71 | ||
| P/FCF | 7.96 | ||
| P/OCF | 7.96 | ||
| P/B | 1.2 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)1.98
EY10.16%
EPS(NY)2.06
Fwd EY10.57%
FCF(TTM)2.45
FCFY12.56%
OCF(TTM)2.45
OCFY12.56%
SpS27.52
BVpS16.2
TBVpS16.01
PEG (NY)0.28
PEG (5Y)1.49
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
WACC8.78%
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 Y35.23%
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 2Y2.09%
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%