15.26 USD
-0.58 (-3.66%)
We assign a fundamental rating of 5 out of 10 to DGICB. DGICB was compared to 149 industry peers in the Insurance industry. DGICB has an average financial health and profitability rating. DGICB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally DGICB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year DGICB was profitable.
- In the past year DGICB had a positive cash flow from operations.
- DGICB had positive earnings in 4 of the past 5 years.
- In the past 5 years DGICB always reported a positive cash flow from operatings.
1.2 Ratios
- DGICB's Return On Assets of 3.56% is fine compared to the rest of the industry. DGICB outperforms 71.14% of its industry peers.
- Looking at the Return On Equity, with a value of 13.73%, DGICB is in the better half of the industry, outperforming 65.10% of the companies in the same industry.
- The Return On Invested Capital of DGICB (3.77%) is better than 64.43% 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
- DGICB has a Profit Margin of 8.72%. This is comparable to the rest of the industry: DGICB outperforms 55.03% of its industry peers.
- In the last couple of years the Profit Margin of DGICB has declined.
- DGICB has a Operating Margin (10.89%) which is in line with its industry peers.
- DGICB's Operating Margin has declined in the last couple of years.
| 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
- DGICB 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 DGICB has been increased compared to 1 year ago.
- DGICB has more shares outstanding than it did 5 years ago.
- DGICB has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of DGICB is 0.40, which is an excellent value as it means it would take DGICB, only 0.40 years of fcf income to pay off all of its debts.
- DGICB's Debt to FCF ratio of 0.40 is amongst the best of the industry. DGICB outperforms 87.92% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that DGICB is not too dependend on debt financing.
- DGICB has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. DGICB outperforms 81.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC8.49%
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.
- The Earnings Per Share has been growing slightly by 6.60% on average over the past years.
- Looking at the last year, DGICB shows a small growth in Revenue. The Revenue has grown by 0.89% in the last year.
- Measured over the past years, DGICB shows a small growth in Revenue. The Revenue has been growing by 4.03% on average per year.
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.
- Based on estimates for the next years, DGICB will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
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
- With a Price/Earnings ratio of 6.47, the valuation of DGICB can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of DGICB indicates a somewhat cheap valuation: DGICB is cheaper than 79.87% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. DGICB is valued rather cheaply when compared to this.
- DGICB is valuated cheaply with a Price/Forward Earnings ratio of 7.32.
- DGICB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGICB is cheaper than 73.15% of the companies in the same industry.
- DGICB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DGICB is valued a bit cheaper than 76.51% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGICB indicates a somewhat cheap valuation: DGICB is cheaper than 62.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 5.19 |
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.
- A more expensive valuation may be justified as DGICB's earnings are expected to grow with 15.88% in the coming years.
PEG (NY)0.11
PEG (5Y)0.98
EPS Next 2Y22.5%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
- DGICB has a Yearly Dividend Yield of 3.73%.
- Compared to an average industry Dividend Yield of 2.53, DGICB pays a bit more dividend than its industry peers.
- DGICB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
- The dividend of DGICB has a limited annual growth rate of 3.21%.
- DGICB has been paying a dividend for at least 10 years, so it has 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
- 28.85% 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.
DP28.85%
EPS Next 2Y22.5%
EPS Next 3Y15.88%
DONEGAL GROUP INC-B / DGICB FAQ
What is the ChartMill fundamental rating of DONEGAL GROUP INC-B (DGICB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DGICB.
Can you provide the valuation status for DONEGAL GROUP INC-B?
ChartMill assigns a valuation rating of 7 / 10 to DONEGAL GROUP INC-B (DGICB). This can be considered as Undervalued.
How profitable is DONEGAL GROUP INC-B (DGICB) stock?
DONEGAL GROUP INC-B (DGICB) has a profitability rating of 4 / 10.
What is the financial health of DONEGAL GROUP INC-B (DGICB) stock?
The financial health rating of DONEGAL GROUP INC-B (DGICB) is 4 / 10.
How sustainable is the dividend of DONEGAL GROUP INC-B (DGICB) stock?
The dividend rating of DONEGAL GROUP INC-B (DGICB) is 8 / 10 and the dividend payout ratio is 28.85%.