DONEGAL GROUP INC-CL A (DGICA) Stock Fundamental Analysis
NASDAQ:DGICA - Nasdaq - US2577012014 - Common Stock - Currency: USD
Taking everything into account, DGICA scores 3 out of 10 in our fundamental rating. DGICA was compared to 144 industry peers in the Insurance industry. Both the profitability and financial health of DGICA have multiple concerns. DGICA is valied quite expensively at the moment, while it does show a decent growth rate.
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 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.06%, DGICA is doing worse than 61.11% of the companies in the same industry.
DGICA's Return On Equity of 4.85% is on the low side compared to the rest of the industry. DGICA is outperformed by 75.69% of its industry peers.
DGICA has a Return On Invested Capital of 1.12%. This is comparable to the rest of the industry: DGICA outperforms 42.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 4.85% | ||
| ROIC | 1.12% |
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's Profit Margin of 2.54% is on the low side compared to the rest of the industry. DGICA is outperformed by 75.00% of its industry peers.
In the last couple of years the Profit Margin of DGICA has declined.
DGICA's Operating Margin of 3.17% is on the low side compared to the rest of the industry. DGICA is outperformed by 81.25% of its industry peers.
DGICA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.17% | ||
| PM (TTM) | 2.54% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGICA is destroying value.
The number of shares outstanding for DGICA has been increased compared to 1 year ago.
The number of shares outstanding for DGICA has been increased compared to 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 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
DGICA's Debt to FCF ratio of 0.84 is fine compared to the rest of the industry. DGICA outperforms 68.75% of its industry peers.
DGICA has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.07, DGICA belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC8.56%
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 1885.71% 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 6.72%.
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)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
The Earnings Per Share is expected to grow by 3.06% on average over the next years.
DGICA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y-3.67%
EPS Next 2Y3.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.88 indicates a correct valuation of DGICA.
DGICA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, DGICA is valued rather cheaply.
A Price/Forward Earnings ratio of 13.37 indicates a correct valuation of DGICA.
DGICA's Price/Forward Earnings is on the same level as the industry average.
DGICA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DGICA.
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 | 14.51 | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y3.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGICA has a Yearly Dividend Yield of 3.84%.
DGICA's Dividend Yield is a higher than the industry average which is at 3.17.
DGICA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
The dividend of DGICA has a limited annual growth rate of 3.59%.
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)3.59%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
90.48% of the earnings are spent on dividend by DGICA. This is not a sustainable payout ratio.
DGICA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP90.48%
EPS Next 2Y3.06%
EPS Next 3YN/A
17.9
-0.09 (-0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.55%
Inst Owner Change11.08%
Ins Owners1.67%
Ins Owner Change6.69%
Market Cap606.81M
Analysts44
Price Target16.83 (-5.98%)
Short Float %0.78%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend0.66
Dividend Growth(5Y)3.59%
DP90.48%
Div Incr Years23
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)188.92%
Min EPS beat(2)45.64%
Max EPS beat(2)332.21%
EPS beat(4)2
Avg EPS beat(4)44.37%
Min EPS beat(4)-155.24%
Max EPS beat(4)332.21%
EPS beat(8)2
Avg EPS beat(8)-16.03%
EPS beat(12)3
Avg EPS beat(12)-36.42%
EPS beat(16)5
Avg EPS beat(16)-35.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)1
Avg Revenue beat(12)-2.21%
Revenue beat(16)1
Avg Revenue beat(16)-2.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.08%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 13.37 | ||
| P/S | 0.62 | ||
| P/FCF | 14.51 | ||
| P/OCF | 14.5 | ||
| P/B | 1.18 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 17.51 |
EPS(TTM)1.39
EY7.77%
EPS(NY)1.34
Fwd EY7.48%
FCF(TTM)1.23
FCFY6.89%
OCF(TTM)1.23
OCFY6.9%
SpS28.88
BVpS15.14
TBVpS14.95
PEG (NY)N/A
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 4.85% | ||
| ROCE | 1.32% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.13% | ||
| ROICexgc | 1.56% | ||
| OM | 3.17% | ||
| PM (TTM) | 2.54% | ||
| GM | N/A | ||
| FCFM | 4.27% |
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 3Y24.04%
ROICexcg growth 5Y-2.86%
ROICexc growth 3Y24.87%
ROICexc growth 5Y-2.74%
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 | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 41.31 | ||
| Cash Conversion | 119.51% | ||
| Profit Quality | 168.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.56%
ROIC/WACC0.13
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 Y-3.67%
EPS Next 2Y3.06%
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 Year1.47%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y154.29%
EBIT growth 3Y26.58%
EBIT growth 5Y1.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.1%
OCF growth 3YN/A
OCF growth 5YN/A