ISE:DQ7A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

€36.8m

Last Updated

2021/06/21 19:47 UTC

Data Sources

Company Financials +

Executive Summary

Donegal Investment Group plc engages in the development, purchase, and sale of seed potatoes. More Details


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Donegal Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Insufficient data to determine DQ7A's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine DQ7A's volatility change over the past year.


Market Performance


7 Day Return

0%

DQ7A

0.4%

IE Food

0.9%

IE Market


1 Year Return

n/a

DQ7A

10.6%

IE Food

38.1%

IE Market

Return vs Industry: Insufficient data to determine how DQ7A performed against the Irish Food industry.

Return vs Market: Insufficient data to determine how DQ7A performed against the Irish Market.


Shareholder returns

DQ7AIndustryMarket
7 Day0%0.4%0.9%
30 Day6.1%2.7%1.7%
90 Dayn/a7.2%3.9%
1 Yearn/a13.5%10.6%39.9%38.1%
3 Year41.3%41.3%38.5%25.9%26.2%20.6%
5 Year133.9%128.1%53.9%27.6%74.1%61.7%

Long-Term Price Volatility Vs. Market

How volatile is Donegal Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Donegal Investment Group undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DQ7A (€13) is trading below our estimate of fair value (€23.36)

Significantly Below Fair Value: DQ7A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DQ7A is good value based on its PE Ratio (14.3x) compared to the European Food industry average (20.6x).

PE vs Market: DQ7A is good value based on its PE Ratio (14.3x) compared to the Irish market (28.4x).


Price to Earnings Growth Ratio

PEG Ratio: DQ7A is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DQ7A is overvalued based on its PB Ratio (1.9x) compared to the XE Food industry average (1.4x).


Future Growth

How is Donegal Investment Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DQ7A's forecast earnings growth (7.1% per year) is above the savings rate (0.5%).

Earnings vs Market: DQ7A's earnings (7.1% per year) are forecast to grow slower than the Irish market (38.3% per year).

High Growth Earnings: DQ7A's earnings are forecast to grow, but not significantly.

Revenue vs Market: DQ7A's revenue (5.7% per year) is forecast to grow slower than the Irish market (12% per year).

High Growth Revenue: DQ7A's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DQ7A's Return on Equity is forecast to be high in 3 years time (26.2%)


Past Performance

How has Donegal Investment Group performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DQ7A has a large one-off gain of €761.0K impacting its February 28 2021 financial results.

Growing Profit Margin: DQ7A's current net profit margins (7.1%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: DQ7A's earnings have declined by 5.8% per year over the past 5 years.

Accelerating Growth: DQ7A's earnings growth over the past year (46.5%) exceeds its 5-year average (-5.8% per year).

Earnings vs Industry: DQ7A earnings growth over the past year (46.5%) exceeded the Food industry 11.3%.


Return on Equity

High ROE: DQ7A's Return on Equity (15.9%) is considered low.


Financial Health

How is Donegal Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: DQ7A's short term assets (€21.1M) exceed its short term liabilities (€14.2M).

Long Term Liabilities: DQ7A's short term assets (€21.1M) exceed its long term liabilities (€677.0K).


Debt to Equity History and Analysis

Debt Level: DQ7A's debt to equity ratio (23.2%) is considered satisfactory.

Reducing Debt: DQ7A's debt to equity ratio has increased from 21.1% to 23.2% over the past 5 years.

Debt Coverage: DQ7A's debt is well covered by operating cash flow (27.6%).

Interest Coverage: DQ7A earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Donegal Investment Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DQ7A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DQ7A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DQ7A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DQ7A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DQ7A is not paying a notable dividend for the Irish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DQ7A's dividend in 3 years as they are not forecast to pay a notable one for the Irish market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average board tenure


CEO

Ian Ireland (58 yo)

no data

Tenure

€363,677

Compensation

Mr. Ian Ireland, BSC, MBA serves as the Chief Executive Officer of Donegal Investment Group plc (alternate name: Donegal Creameries Plc) and has been its Managing Director since January 2005. Mr. Ireland s...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD433.26K) is above average for companies of similar size in the Irish market ($USD312.13K).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: DQ7A's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Donegal Investment Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Donegal Investment Group plc
  • Ticker: DQ7A
  • Exchange: ISE
  • Founded: 1898
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €36.774m
  • Shares outstanding: 2.83m
  • Website: https://www.donegaligroup.com

Number of Employees


Location

  • Donegal Investment Group plc
  • Ballyraine
  • Letterkenny
  • Co. Donegal
  • Ireland

Listings


Biography

Donegal Investment Group plc engages in the development, purchase, and sale of seed potatoes. The company also manufactures, sells, and distributes dairy products; and rents and sells property assets. It h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 19:47
End of Day Share Price2021/06/15 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.