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Donegal Group NasdaqGS:DGIC.A Stock Report

Last Price


Market Cap







05 Jul, 2022


Company Financials +
DGIC.A fundamental analysis
Snowflake Score
Future Growth3/6
Past Performance2/6
Financial Health5/6

DGIC.A Stock Overview

Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals.

Donegal Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Donegal Group
Historical stock prices
Current Share PriceUS$16.87
52 Week HighUS$17.13
52 Week LowUS$13.09
1 Month Change4.33%
3 Month Change25.90%
1 Year Change14.84%
3 Year Change12.69%
5 Year Change8.07%
Change since IPO263.53%

Recent News & Updates

Shareholder Returns

DGIC.AUS InsuranceUS Market

Return vs Industry: DGIC.A exceeded the US Insurance industry which returned 2.7% over the past year.

Return vs Market: DGIC.A exceeded the US Market which returned -19.1% over the past year.

Price Volatility

Is DGIC.A's price volatile compared to industry and market?
DGIC.A volatility
DGIC.A Average Weekly Movement2.9%
Insurance Industry Average Movement5.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: DGIC.A is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DGIC.A's weekly volatility (3%) has been stable over the past year.

About the Company

1986n/aKevin Burke

Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals. It operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property.

Donegal Group Fundamentals Summary

How do Donegal Group's earnings and revenue compare to its market cap?
DGIC.A fundamental statistics
Market CapUS$522.32m
Earnings (TTM)US$27.87m
Revenue (TTM)US$826.12m


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DGIC.A income statement (TTM)
Cost of RevenueUS$790.35m
Gross ProfitUS$35.77m
Other ExpensesUS$7.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.89
Gross Margin4.33%
Net Profit Margin3.37%
Debt/Equity Ratio6.7%

How did DGIC.A perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is DGIC.A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DGIC.A?

Other financial metrics that can be useful for relative valuation.

DGIC.A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA12.5x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does DGIC.A's PE Ratio compare to its peers?

DGIC.A PE Ratio vs Peers
The above table shows the PE ratio for DGIC.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x
UVE Universal Insurance Holdings
TIG Trean Insurance Group
GBLI Global Indemnity Group
UFCS United Fire Group
DGIC.A Donegal Group

Price-To-Earnings vs Peers: DGIC.A is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (25.5x).

Price to Earnings Ratio vs Industry

How does DGIC.A's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Earnings vs Industry: DGIC.A is expensive based on its Price-To-Earnings Ratio (19x) compared to the US Insurance industry average (12.1x)

Price to Earnings Ratio vs Fair Ratio

What is DGIC.A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DGIC.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: DGIC.A is expensive based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).

Share Price vs Fair Value

What is the Fair Price of DGIC.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DGIC.A ($16.87) is trading below our estimate of fair value ($23.54)

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

Price to Earnings Growth Ratio

PEG Ratio: DGIC.A is good value based on its PEG Ratio (0.7x)

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Future Growth

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

Future Growth Score


Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGIC.A's forecast earnings growth (25.9% per year) is above the savings rate (1.9%).

Earnings vs Market: DGIC.A's earnings (25.9% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: DGIC.A's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DGIC.A's revenue (4.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: DGIC.A's revenue (4.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if DGIC.A's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Donegal Group performed over the past 5 years?

Past Performance Score


Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DGIC.A has high quality earnings.

Growing Profit Margin: DGIC.A's current net profit margins (3.4%) are lower than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: DGIC.A's earnings have grown significantly by 36% per year over the past 5 years.

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

Earnings vs Industry: DGIC.A had negative earnings growth (-53.3%) over the past year, making it difficult to compare to the Insurance industry average (-2.6%).

Return on Equity

High ROE: DGIC.A's Return on Equity (5.3%) is considered low.

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Financial Health

How is Donegal Group's financial position?

Financial Health Score


Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DGIC.A's short term assets ($884.1M) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: DGIC.A's short term assets ($884.1M) exceed its long term liabilities ($43.0M).

Debt to Equity History and Analysis

Debt Level: DGIC.A has more cash than its total debt.

Reducing Debt: DGIC.A's debt to equity ratio has reduced from 16.6% to 6.7% over the past 5 years.

Debt Coverage: DGIC.A's debt is well covered by operating cash flow (193.2%).

Interest Coverage: DGIC.A's interest payments on its debt are well covered by EBIT (46.9x coverage).

Balance Sheet

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

Dividend Score


Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DGIC.A's dividend (3.91%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: DGIC.A's dividend (3.91%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: DGIC.A's dividends per share have been stable in the past 10 years.

Growing Dividend: DGIC.A's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (71.7%), DGIC.A's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.7%), DGIC.A's dividend payments are well covered by cash flows.

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


Average management tenure


Kevin Burke (56 yo)





Mr. Kevin Gerard Burke has been the Chief Executive Officer and President of Donegal Group Inc. since July 16, 2015. He is President of Peninsula Insurance Company and serves its Director since 2019. He is...

CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD2.92M).

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

Leadership Team

Experienced Management: DGIC.A's management team is considered experienced (4 years average tenure).

Board Members

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


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

Insider Trading Volume

Insider Buying: DGIC.A 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 Group Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Donegal Group Inc.
  • Ticker: DGIC.A
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: US$522.320m
  • Shares outstanding: 31.42m
  • Website:


  • Donegal Group Inc.
  • 1195 River Road
  • P.O. Box 302
  • Marietta
  • Pennsylvania
  • 17547-0302
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Annual Earnings2021/12/31

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.