ISE:DQ7A

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with acceptable track record.

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: DQ7A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

DQ7A

2.0%

IE Food

3.6%

IE Market


1 Year Return

17.1%

DQ7A

-1.7%

IE Food

19.3%

IE Market

Return vs Industry: DQ7A exceeded the Irish Food industry which returned -1.9% over the past year.

Return vs Market: DQ7A underperformed the Irish Market which returned 18.8% over the past year.


Shareholder returns

DQ7AIndustryMarket
7 Day4.0%2.0%3.6%
30 Day-3.0%1.5%6.0%
90 Day2.4%4.7%22.7%
1 Year17.1%17.1%0.7%-1.7%21.2%19.3%
3 Year108.0%108.0%23.2%15.7%12.6%7.3%
5 Year155.0%145.3%46.8%32.6%42.2%31.4%

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?

24.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DQ7A (€13) is trading above our estimate of fair value (€4.36)

Significantly Below Fair Value: DQ7A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DQ7A is poor value based on its PE Ratio (24.6x) compared to the XE Food industry average (19.4x).

PE vs Market: DQ7A is poor value based on its PE Ratio (24.6x) compared to the Irish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DQ7A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DQ7A is overvalued based on its PB Ratio (1.7x) compared to the XE Food industry average (1.1x).


Next Steps

Future Growth

How is Donegal Investment Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.2%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Donegal Investment Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DQ7A has a large one-off loss of €450.0K impacting its February 29 2020 financial results.

Growing Profit Margin: DQ7A's current net profit margins (4.2%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: DQ7A's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: DQ7A's earnings growth over the past year (65.3%) exceeds its 5-year average (22% per year).

Earnings vs Industry: DQ7A earnings growth over the past year (65.3%) exceeded the Food industry -2.8%.


Return on Equity

High ROE: DQ7A's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Donegal Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: DQ7A's short term assets (€28.5M) exceed its short term liabilities (€11.2M).

Long Term Liabilities: DQ7A's short term assets (€28.5M) exceed its long term liabilities (€836.0K).


Debt to Equity History and Analysis

Debt Level: DQ7A's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: DQ7A's debt to equity ratio has reduced from 23.6% to 0.6% over the past 5 years.

Debt Coverage: DQ7A's debt is well covered by operating cash flow (2764.8%).

Interest Coverage: DQ7A's interest payments on its debt are well covered by EBIT (27.4x coverage).


Balance Sheet


Next Steps

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?

10.1yrs

Average board tenure


CEO

Ian Ireland (58 yo)

no data

Tenure

€557,371

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 ($USD657.28K) is above average for companies of similar size in the Irish market ($USD323.87K).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Ireland
CEO, MD & Executive Directorno data€557.37k2.6%
€ 1.2m
Norman Witherow
Vice Chairmanno data€19.87k0.82%
€ 383.0k
Padraic Lenehan
Finance Director5.08yrs€184.65kno data
Henry McGarvey
Executive Director7yrs€18.30k0.44%
€ 205.4k
Geoffrey Vance
Independent Chairman of the Board14.08yrs€45.21k2.58%
€ 1.2m
Geoffrey McClay
Independent Non-Executive Director10.08yrs€14.39k0.46%
€ 214.1k
Frank Browne
Independent Non-Executive Director9.17yrs€13.14k0.23%
€ 109.2k
Michael Griffin
Independent Non-Executive Director10.42yrs€17.05k0.32%
€ 150.4k
Patrick Kelly
Independent Non-Executive Director16.08yrs€15.54k0.085%
€ 39.5k

10.1yrs

Average Tenure

58yo

Average Age

Experienced Board: DQ7A's board of directors are seasoned and experienced ( 10.1 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: €46.737m
  • Shares outstanding: 3.60m
  • 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 engages in the development, purchase, and sale of seed potatoes. The company is also involved in the manufacture, sale, and distribution of dairy products; and rental and sale ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:50
End of Day Share Price2020/08/13 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.