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DONEGAL GROUP INC-B (DGICB) Stock Fundamental Analysis

NASDAQ:DGICB - Nasdaq - US2577013004 - Common Stock - Currency: USD

15.8  +0.2 (+1.28%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DGICB. DGICB was compared to 144 industry peers in the Insurance industry. DGICB has a bad profitability rating. Also its financial health evaluation is rather negative. DGICB is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

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.
DGICB had a positive operating cash flow in 4 of the past 5 years.
DGICB Yearly Net Income VS EBIT VS OCF VS FCFDGICB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M

1.2 Ratios

The Return On Assets of DGICB (1.06%) is worse than 60.42% of its industry peers.
DGICB's Return On Equity of 4.85% is on the low side compared to the rest of the industry. DGICB is outperformed by 75.00% of its industry peers.
DGICB has a Return On Invested Capital (1.12%) which is comparable to the rest of the industry.
Industry RankSector 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
DGICB Yearly ROA, ROE, ROICDGICB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

Looking at the Profit Margin, with a value of 2.54%, DGICB is doing worse than 74.31% of the companies in the same industry.
DGICB's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.17%, DGICB is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
DGICB's Operating Margin has declined in the last couple of years.
Industry RankSector 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
DGICB Yearly Profit, Operating, Gross MarginsDGICB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGICB is destroying value.
The number of shares outstanding for DGICB has been increased compared to 1 year ago.
The number of shares outstanding for DGICB has been increased compared to 5 years ago.
DGICB has a better debt/assets ratio than last year.
DGICB Yearly Shares OutstandingDGICB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
DGICB Yearly Total Debt VS Total AssetsDGICB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

DGICB 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.
DGICB's Debt to FCF ratio of 0.84 is fine compared to the rest of the industry. DGICB outperforms 69.44% of its industry peers.
DGICB has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DGICB (0.07) is better than 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.84
Altman-Z N/A
ROIC/WACC0.13
WACC8.51%
DGICB Yearly LT Debt VS Equity VS FCFDGICB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
DGICB Yearly Current Assets VS Current LiabilitesDGICB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

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4

3. Growth

3.1 Past

DGICB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1885.71%, which is quite impressive.
Measured over the past 5 years, DGICB shows a small growth in Earnings Per Share. The EPS has been growing by 6.60% on average per year.
DGICB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.72%.
DGICB 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, DGICB will show a small growth in Earnings Per Share. The EPS will grow by 3.06% on average per year.
The Revenue is expected to grow by 2.76% on average over the next years.
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.
DGICB Yearly Revenue VS EstimatesDGICB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
DGICB Yearly EPS VS EstimatesDGICB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

DGICB is valuated reasonably with a Price/Earnings ratio of 11.37.
DGICB's Price/Earnings ratio is a bit cheaper when compared to the industry. DGICB is cheaper than 60.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of DGICB to the average of the S&P500 Index (29.35), we can say DGICB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of DGICB can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as DGICB.
The average S&P500 Price/Forward Earnings ratio is at 22.10. DGICB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.37
Fwd PE 11.8
DGICB Price Earnings VS Forward Price EarningsDGICB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as DGICB.
DGICB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.81
EV/EBITDA 15.47
DGICB Per share dataDGICB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y3.06%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

DGICB has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.17, DGICB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, DGICB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.84%

5.2 History

The dividend of DGICB has a limited annual growth rate of 3.59%.
DGICB has paid a dividend for at least 10 years, which is a reliable track record.
DGICB 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
DGICB Yearly Dividends per shareDGICB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

90.48% of the earnings are spent on dividend by DGICB. This is not a sustainable payout ratio.
The dividend of DGICB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.48%
EPS Next 2Y3.06%
EPS Next 3YN/A
DGICB Yearly Income VS Free CF VS DividendDGICB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M 80M 100M
DGICB Dividend Payout.DGICB Dividend Payout, showing the Payout Ratio.DGICB Dividend Payout.PayoutRetained Earnings

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DONEGAL GROUP INC-B

NASDAQ:DGICB (3/7/2025, 8:19:37 PM)

15.8

+0.2 (+1.28%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)04-23 2025-04-23/bmo
Inst Owners85.55%
Inst Owner Change0.04%
Ins Owners1.67%
Ins Owner ChangeN/A
Market Cap535.62M
Analysts44
Price Target13.93 (-11.84%)
Short Float %0%
Short Ratio0.28
Dividend
Industry RankSector Rank
Dividend Yield 3.84%
Yearly Dividend0.66
Dividend Growth(5Y)3.59%
DP90.48%
Div Incr Years23
Div Non Decr Years23
Ex-Date02-04 2025-02-04 (0.155)
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)-15.78%
PT rev (3m)-5.06%
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 RankSector Rank
PE 11.37
Fwd PE 11.8
P/S 0.55
P/FCF 12.81
P/OCF 12.79
P/B 1.04
P/tB 1.06
EV/EBITDA 15.47
EPS(TTM)1.39
EY8.8%
EPS(NY)1.34
Fwd EY8.47%
FCF(TTM)1.23
FCFY7.81%
OCF(TTM)1.23
OCFY7.82%
SpS28.88
BVpS15.14
TBVpS14.95
PEG (NY)N/A
PEG (5Y)1.72
Profitability
Industry RankSector 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 RankSector 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
WACC8.51%
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