DONEGAL GROUP INC-B (DGICB) Stock Fundamental Analysis
USA - NASDAQ:DGICB - US2577013004 - Common Stock
17.9 USD
+1.3 (+7.83%)
DGICB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. Both the profitability and the financial health of DGICB get a neutral evaluation. Nothing too spectacular is happening here. DGICB may be a bit undervalued, certainly considering the very reasonable score on growth DGICB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DGICB had positive earnings in the past year.
In the past year DGICB had a positive cash flow from operations.
Of the past 5 years DGICB 4 years were profitable.
In the past 5 years DGICB always reported a positive cash flow from operatings.
1.2 Ratios
DGICB has a better Return On Assets (3.44%) than 69.86% of its industry peers.
DGICB has a better Return On Equity (13.67%) than 68.49% of its industry peers.
The Return On Invested Capital of DGICB (3.62%) is better than 69.18% 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
Looking at the Profit Margin, with a value of 8.34%, DGICB is in line with its industry, outperforming 55.48% of the companies in the same industry.
In the last couple of years the Profit Margin of DGICB has declined.
DGICB has a Operating Margin of 10.36%. This is comparable to the rest of the industry: DGICB outperforms 47.26% of its industry peers.
DGICB'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
DGICB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DGICB has more shares outstanding
The number of shares outstanding for DGICB has been increased compared to 5 years ago.
Compared to 1 year ago, DGICB has an improved debt to assets ratio.
2.2 Solvency
DGICB 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.
DGICB's Debt to FCF ratio of 0.44 is amongst the best of the industry. DGICB outperforms 82.19% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGICB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, DGICB belongs to the top of the industry, outperforming 80.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.45%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
DGICB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1542.86%, which is quite impressive.
DGICB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.60% yearly.
Looking at the last year, DGICB shows a small growth in Revenue. The Revenue has grown by 3.37% in the last year.
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
The Earnings Per Share is expected to grow by 15.42% on average over the next years. This is quite good.
DGICB 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
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
DGICB is valuated cheaply with a Price/Earnings ratio of 7.78.
Based on the Price/Earnings ratio, DGICB is valued a bit cheaper than the industry average as 76.71% of the companies are valued more expensively.
DGICB is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.69, the valuation of DGICB can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGICB indicates a somewhat cheap valuation: DGICB is cheaper than 66.44% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. DGICB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
DGICB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGICB is cheaper than 73.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DGICB is valued a bit cheaper than 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
DGICB'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 DGICB's earnings are expected to grow with 15.42% in the coming years.
PEG (NY)0.21
PEG (5Y)1.18
EPS Next 2Y21.74%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
DGICB has a Yearly Dividend Yield of 3.74%.
Compared to an average industry Dividend Yield of 3.44, DGICB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, DGICB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of DGICB has a limited annual growth rate of 3.21%.
DGICB has paid a dividend for at least 10 years, which is a reliable track record.
DGICB 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
28.95% of the earnings are spent on dividend by DGICB. This is a low number and sustainable payout ratio.
The dividend of DGICB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.95%
EPS Next 2Y21.74%
EPS Next 3Y15.42%
NASDAQ:DGICB (9/19/2025, 8:00:01 PM)
17.9
+1.3 (+7.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.36%
Inst Owner Change7.13%
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap653.53M
Analysts44
Price Target17.86 (-0.22%)
Short Float %0.01%
Short Ratio0.86
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)11.7%
PT rev (3m)11.7%
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 | 7.78 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.66 | ||
| P/FCF | 8.29 | ||
| P/OCF | 8.29 | ||
| P/B | 1.08 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)2.3
EY12.85%
EPS(NY)2.06
Fwd EY11.51%
FCF(TTM)2.16
FCFY12.06%
OCF(TTM)2.16
OCFY12.06%
SpS27.22
BVpS16.59
TBVpS16.41
PEG (NY)0.21
PEG (5Y)1.18
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
WACC8.45%
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%