ISE:DQ7A

Stock Analysis Report

Executive Summary

Donegal Investment Group plc primarily engages in the development, purchase, and sale of seed potatoes and organic produce.

Snowflake

Fundamentals

Excellent balance sheet and fair 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


Market Performance


7 Day Return

-3.5%

DQ7A

-1.9%

IE Food

0.2%

IE Market


1 Year Return

23.9%

DQ7A

12.9%

IE Food

4.3%

IE Market

Return vs Industry: DQ7A exceeded the Irish Food industry which returned 12.9% over the past year.

Return vs Market: DQ7A exceeded the Irish Market which returned 4.3% over the past year.


Shareholder returns

DQ7AIndustryMarket
7 Day-3.5%-1.9%0.2%
30 Day-3.5%-2.2%5.9%
90 Day1.9%-0.06%2.3%
1 Year23.9%23.9%17.6%12.9%6.6%4.3%
3 Year100.0%98.2%33.5%14.3%18.0%12.4%
5 Year97.8%84.7%59.8%47.0%77.3%62.2%

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?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DQ7A (€10.9) is trading below our estimate of fair value (€17.05)

Significantly Undervalued: DQ7A is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DQ7A is good value based on its PE Ratio (15.1x) compared to the Food industry average (17.1x).

PE vs Market: DQ7A is poor value based on its PE Ratio (15.1x) compared to the Irish market (13.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: DQ7A is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: DQ7A is overvalued based on its PB Ratio (1.5x) compared to the XE Food industry average (1.2x).


Next Steps

Future Growth

How is Donegal Investment Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DQ7A's forecast earnings growth (16.9% per year) is above the savings rate (0.9%).

Earnings vs Market: DQ7A's earnings (16.9% per year) are forecast to grow faster than the Irish market (13% per year).

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

Revenue vs Market: DQ7A's revenue (4.4% per year) is forecast to grow faster than the Irish market (4.2% per year).

High Growth Revenue: DQ7A's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DQ7A's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

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

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DQ7A's earnings have grown significantly by 41.6% per year over the past 5 years.

Accelerating Growth: DQ7A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DQ7A had negative earnings growth (-82.1%) over the past year, making it difficult to compare to the Food industry average (0.3%).


Return on Equity

High ROE: DQ7A's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: DQ7A has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: DQ7A has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Donegal Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: DQ7A's short term assets (€43.5M) exceeds its short term liabilities (€19.8M)

Long Term Liabilities: DQ7A's short term assets (43.5M) exceeds its long term liabilities (5.6M)


Debt to Equity History and Analysis

Debt Level: DQ7A's debt to equity ratio (23.8%) is considered satisfactory

Reducing Debt: DQ7A's debt to equity ratio has increased from 23.3% to 23.8% over the past 5 years.

Debt Coverage: DQ7A's debt is well covered by operating cash flow (72.5%).

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


Balance Sheet

Inventory Level: DQ7A has a high level of physical assets or inventory.

Debt Coverage by Assets: DQ7A's debt is covered by short term assets (assets are 5.497530x debt).


Next Steps

Dividend

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

1.60%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%4.0%industryaverage2.4%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Donegal Investment Group's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average board tenure


CEO

Ian Ireland (57yo)

0yrs

Tenure

€538,073

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: Insufficient data to establish whether Ian's total compensation is reasonable compared to companies of similar size in the Irish market.

Compensation vs Earnings: Ian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

9.3yrs

Average Tenure

57yo

Average Age

Experienced Board: DQ7A's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€12,30304 Mar 19
Frank Browne
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,367
Max Price€9.00
Buy€9,62810 Jan 19
Ian Ireland
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares1,000
Max Price€9.63
Buy€16,31714 Dec 18
Ian Ireland
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares1,813
Max Price€9.00
Buy€24,86929 Nov 18
Geoffrey Vance
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,875
Max Price€8.65
Buy€43,00029 Nov 18
Geoffrey McClay
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max Price€8.60
Buy€43,25029 Nov 18
Ian Ireland
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares5,000
Max Price€8.65

Ownership Breakdown


Management Team

  • Henry McGarvey (51yo)

    Executive Director

    • Tenure: 6.2yrs
    • Compensation: €17.36k
  • Norman Witherow (66yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €20.39k
  • Ian Ireland (57yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: €538.07k
  • Padraic Lenehan (44yo)

    Finance Director

    • Tenure: 4.3yrs
    • Compensation: €173.41k

Board Members

  • Henry McGarvey (51yo)

    Executive Director

    • Tenure: 6.2yrs
    • Compensation: €17.36k
  • Norman Witherow (66yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €20.39k
  • Geoffrey Vance (67yo)

    Chairman

    • Tenure: 13.3yrs
    • Compensation: €45.21k
  • Geoffrey McClay (53yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: €14.39k
  • Frank Browne (66yo)

    Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: €13.14k
  • Michael Griffin (72yo)

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: €17.36k
  • Ian Ireland (57yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: €538.07k
  • Jnr Kelly (46yo)

    Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: €15.54k
  • Padraic Lenehan (44yo)

    Finance Director

    • Tenure: 4.3yrs
    • Compensation: €173.41k

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: €45.196m
  • Shares outstanding: 4.15m
  • Website: https://www.donegaligroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DQ7AISE (Irish Stock Exchange)YesOrdinary SharesIEEURDec 1997

Biography

Donegal Investment Group plc primarily engages in the development, purchase, and sale of seed potatoes and organic produce. It operates through Produce, and Food - Agri and Property segments. The company m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:32
End of Day Share Price2019/10/17 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.