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DONEGAL GROUP INC-B (DGICB) Stock Fundamental Analysis

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

17.1  +0.12 (+0.71%)

Fundamental Rating

4

Taking everything into account, DGICB scores 4 out of 10 in our fundamental rating. DGICB was compared to 143 industry peers in the Insurance industry. DGICB may be in some trouble as it scores bad on both profitability and health. DGICB is not valued too expensively and it also shows a decent growth rate. Finally DGICB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
DGICB had a positive operating cash flow in each 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

DGICB's Return On Assets of 2.18% is in line compared to the rest of the industry. DGICB outperforms 51.75% of its industry peers.
With a Return On Equity value of 9.32%, DGICB perfoms like the industry average, outperforming 46.85% of the companies in the same industry.
DGICB has a Return On Invested Capital of 2.30%. This is comparable to the rest of the industry: DGICB outperforms 52.45% of its industry peers.
Industry RankSector 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
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

DGICB's Profit Margin of 5.14% is on the low side compared to the rest of the industry. DGICB is outperformed by 63.64% of its industry peers.
DGICB's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.39%, DGICB is not doing good in the industry: 62.94% 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 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
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

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.
Compared to 5 years ago, DGICB has more shares outstanding
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 0.52. 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.
Looking at the Debt to FCF ratio, with a value of 0.52, DGICB is in the better half of the industry, outperforming 79.02% of the companies in the same industry.
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 83.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.52
Altman-Z N/A
ROIC/WACC0.26
WACC8.68%
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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5

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%.
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)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 11.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.99% on average over the next years.
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.
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

The Price/Earnings ratio is 12.30, which indicates a correct valuation of DGICB.
Compared to the rest of the industry, the Price/Earnings ratio of DGICB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.64, DGICB is valued rather cheaply.
DGICB is valuated reasonably with a Price/Forward Earnings ratio of 10.95.
DGICB's Price/Forward Earnings ratio is in line with the industry average.
DGICB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.3
Fwd PE 10.95
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGICB is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DGICB.
Industry RankSector Rank
P/FCF 9.04
EV/EBITDA 8.74
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

DGICB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.99
PEG (5Y)1.87
EPS Next 2Y11.69%
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

DGICB has a Yearly Dividend Yield of 4.00%, which is a nice return.
Compared to an average industry Dividend Yield of 3.28, DGICB pays a better dividend. On top of this DGICB pays more dividend than 80.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, DGICB pays a better dividend.
Industry RankSector Rank
Dividend Yield 4%

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
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

44.63% of the earnings are spent on dividend by DGICB. This is a bit on the high side, but may be sustainable.
The dividend of DGICB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.63%
EPS Next 2Y11.69%
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 (4/24/2025, 2:15:03 PM)

17.1

+0.12 (+0.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)04-24 2025-04-24/bmo
Inst Owners85.55%
Inst Owner Change-3.64%
Ins Owners1.67%
Ins Owner ChangeN/A
Market Cap609.44M
Analysts44
Price Target14.02 (-18.01%)
Short Float %0%
Short Ratio0.24
Dividend
Industry RankSector Rank
Dividend Yield 4%
Yearly Dividend0.66
Dividend Growth(5Y)3.21%
DP44.63%
Div Incr Years23
Div Non Decr Years23
Ex-Date05-01 2025-05-01 (0.165)
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)0.64%
PT rev (3m)-15.24%
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 RankSector Rank
PE 12.3
Fwd PE 10.95
P/S 0.62
P/FCF 9.04
P/OCF 9.04
P/B 1.12
P/tB 1.13
EV/EBITDA 8.74
EPS(TTM)1.39
EY8.13%
EPS(NY)1.56
Fwd EY9.14%
FCF(TTM)1.89
FCFY11.07%
OCF(TTM)1.89
OCFY11.07%
SpS27.77
BVpS15.31
TBVpS15.13
PEG (NY)0.99
PEG (5Y)1.87
Profitability
Industry RankSector 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 RankSector 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
WACC8.68%
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%