DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
NASDAQ:DGICA - Nasdaq - US2577012014 - Common Stock - Currency: USD
Overall DGICA gets a fundamental rating of 4 out of 10. We evaluated DGICA against 143 industry peers in the Insurance industry. DGICA has a bad profitability rating. Also its financial health evaluation is rather negative. 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
DGICA had positive earnings in the past year.
DGICA had a positive operating cash flow in the past year.
Of the past 5 years DGICA 4 years were profitable.
Each year in the past 5 years DGICA had a positive operating cash flow.
1.2 Ratios
DGICA has a Return On Assets of 2.18%. This is comparable to the rest of the industry: DGICA outperforms 51.05% of its industry peers.
With a Return On Equity value of 9.32%, DGICA perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
DGICA has a Return On Invested Capital of 2.30%. This is comparable to the rest of the industry: DGICA outperforms 51.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9.32% | ||
| ROIC | 2.3% |
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 worse Profit Margin (5.14%) than 64.34% of its industry peers.
DGICA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.39%, DGICA is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of DGICA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 5.14% | ||
| 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.
Compared to 1 year ago, DGICA has more shares outstanding
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 0.52. This is a very positive value and a sign of high solvency as it would only need 0.52 years to pay back of all of its debts.
DGICA has a better Debt to FCF ratio (0.52) than 78.32% of its industry peers.
DGICA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
DGICA has a better Debt to Equity ratio (0.06) than 82.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.26
WACC8.71%
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 1885.71%, 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.
The Revenue has been growing slightly by 6.72% in the past year.
DGICA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
EPS 1Y (TTM)1885.71%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%727.27%
Revenue 1Y (TTM)6.72%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%4.38%
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 11.69% on average per year.
DGICA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
EPS Next Y12.39%
EPS Next 2Y11.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y3.99%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.15, the valuation of DGICA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DGICA is on the same level as its industry peers.
DGICA is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.59 indicates a correct valuation of DGICA.
DGICA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.44. DGICA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DGICA.
The rest of the industry has a similar Price/Free Cash Flow ratio as DGICA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.14
PEG (5Y)2.15
EPS Next 2Y11.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGICA has a Yearly Dividend Yield of 4.00%, which is a nice return.
DGICA's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.52, DGICA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
44.63% of the earnings are spent on dividend by DGICA. This is a bit on the high side, but may be sustainable.
The dividend of DGICA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.63%
EPS Next 2Y11.69%
EPS Next 3YN/A
NASDAQ:DGICA (4/24/2025, 11:59:28 AM)
19.665
+1.11 (+6.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.55%
Inst Owner Change0.12%
Ins Owners1.67%
Ins Owner Change6.97%
Market Cap700.86M
Analysts44
Price Target18.36 (-6.64%)
Short Float %0.77%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend0.66
Dividend Growth(5Y)3.21%
DP44.63%
Div Incr Years23
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)225.33%
Min EPS beat(2)118.44%
Max EPS beat(2)332.21%
EPS beat(4)3
Avg EPS beat(4)112.79%
Min EPS beat(4)-45.12%
Max EPS beat(4)332.21%
EPS beat(8)3
Avg EPS beat(8)6.9%
EPS beat(12)4
Avg EPS beat(12)-21.32%
EPS beat(16)5
Avg EPS beat(16)-29.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)1
Avg Revenue beat(12)-2.3%
Revenue beat(16)1
Avg Revenue beat(16)-2.24%
PT rev (1m)9.09%
PT rev (3m)9.09%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)23.16%
EPS NY rev (1m)16.67%
EPS NY rev (3m)16.67%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 12.59 | ||
| P/S | 0.71 | ||
| P/FCF | 10.39 | ||
| P/OCF | 10.39 | ||
| P/B | 1.28 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)1.39
EY7.07%
EPS(NY)1.56
Fwd EY7.94%
FCF(TTM)1.89
FCFY9.62%
OCF(TTM)1.89
OCFY9.62%
SpS27.77
BVpS15.31
TBVpS15.13
PEG (NY)1.14
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9.32% | ||
| ROCE | 2.72% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.35% | ||
| ROICexgc | 3.22% | ||
| OM | 6.39% | ||
| PM (TTM) | 5.14% | ||
| GM | N/A | ||
| FCFM | 6.81% |
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 | 0.52 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 65.3 | ||
| Cash Conversion | 100.42% | ||
| Profit Quality | 132.59% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.71%
ROIC/WACC0.26
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)1885.71%
EPS 3Y27.54%
EPS 5Y6.6%
EPS Q2Q%727.27%
EPS Next Y12.39%
EPS Next 2Y11.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.72%
Revenue growth 3Y6.62%
Revenue growth 5Y4.03%
Sales Q2Q%4.38%
Revenue Next Year2.16%
Revenue Next 2Y3.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1015.27%
EBIT growth 3Y26.58%
EBIT growth 5Y1.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y135.98%
FCF growth 3Y-4.2%
FCF growth 5Y-2.44%
OCF growth 1Y135.61%
OCF growth 3Y-4.2%
OCF growth 5Y-2.46%