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DGIC

Donegal Group NasdaqGS:DGIC.A Stock Report

Last Price

US$13.85

Market Cap

US$450.0m

7D

-2.9%

1Y

-4.2%

Updated

24 Sep, 2022

Data

Company Financials +
DGIC.A fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends5/6

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$13.85
52 Week HighUS$17.13
52 Week LowUS$13.09
Beta-0.10
1 Month Change-7.91%
3 Month Change-18.00%
1 Year Change-4.15%
3 Year Change-4.22%
5 Year Change-14.14%
Change since IPO198.45%

Recent News & Updates

Shareholder Returns

DGIC.AUS InsuranceUS Market
7D-2.9%-4.2%-5.2%
1Y-4.2%-2.9%-23.0%

Return vs Industry: DGIC.A underperformed the US Insurance industry which returned -2.9% over the past year.

Return vs Market: DGIC.A exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is DGIC.A's price volatile compared to industry and market?
DGIC.A volatility
DGIC.A Average Weekly Movement4.0%
Insurance Industry Average Movement4.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: DGIC.A is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DGIC.A's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aKevin Burkehttps://www.donegalgroup.com

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$450.03m
Earnings (TTM)US$3.50m
Revenue (TTM)US$825.29m

128.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DGIC.A income statement (TTM)
RevenueUS$825.29m
Cost of RevenueUS$819.74m
Gross ProfitUS$5.55m
Other ExpensesUS$2.05m
EarningsUS$3.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin0.67%
Net Profit Margin0.42%
Debt/Equity Ratio6.8%

How did DGIC.A perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

570%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/EBITDA48x
PEG Ratio2.2x

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 Average45x
UFCS United Fire Group
11.1xn/aUS$735.0m
IGIC International General Insurance Holdings
5.9x-0.1%US$365.7m
AMBC Ambac Financial Group
143.4x-121.2%US$573.7m
AMSF AMERISAFE
19.6x-5.1%US$903.0m
DGIC.A Donegal Group
128x59.2%US$450.0m

Price-To-Earnings vs Peers: DGIC.A is expensive based on its Price-To-Earnings Ratio (128x) compared to the peer average (45x).


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 (128x) compared to the US Insurance industry average (13.1x)


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 Ratio128x
Fair PE Ratio19.4x

Price-To-Earnings vs Fair Ratio: DGIC.A is expensive based on its Price-To-Earnings Ratio (128x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).


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 ($13.85) is trading below our estimate of fair value ($23.84)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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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

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


59.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGIC.A's forecast earnings growth (59.2% per year) is above the savings rate (1.9%).

Earnings vs Market: DGIC.A's earnings (59.2% per year) are forecast to grow faster than the US market (14.7% 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 (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DGIC.A's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DGIC.A's Return on Equity is forecast to be low in 3 years time (8.6%).


Discover growth companies

Past Performance

How has Donegal Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


34.6%

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 (0.4%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: DGIC.A's earnings have grown significantly by 34.6% 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 (-93.4%) over the past year, making it difficult to compare to the Insurance industry average (-22.8%).


Return on Equity

High ROE: DGIC.A's Return on Equity (0.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Donegal Group's financial position?

Financial Health Score

5/6

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 ($894.1M) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: DGIC.A's short term assets ($894.1M) exceed its long term liabilities ($43.6M).


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 16.7% to 6.8% over the past 5 years.

Debt Coverage: DGIC.A's debt is well covered by operating cash flow (150.1%).

Interest Coverage: DGIC.A's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DGIC.A's dividend (4.77%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: DGIC.A's dividend (4.77%) is in the top 25% of dividend payers in the US market (4.57%)


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 high payout ratio (570.1%), DGIC.A's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (40.6%), DGIC.A's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.2yrs

Average management tenure


CEO

Kevin Burke (56 yo)

8.08yrs

Tenure

US$1,017,560

Compensation

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 ($USD1.02M) is below average for companies of similar size in the US market ($USD2.89M).

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 (4.2 years average tenure).


Board Members

Experienced Board: DGIC.A's board of directors are considered experienced (9.4 years average tenure).


Ownership

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

NasdaqGS:DGIC.A Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Sep 22BuyUS$144,600Donegal Mutual Insurance CompanyCompany10,000US$14.46
13 Sep 22BuyUS$43,279Jack HessIndividual3,000US$14.43
13 Sep 22BuyUS$283,855Donegal Mutual Insurance CompanyCompany19,574US$14.66
09 Sep 22BuyUS$281,589Donegal Mutual Insurance CompanyCompany19,311US$14.63
07 Sep 22BuyUS$286,647Donegal Mutual Insurance CompanyCompany19,900US$14.53
02 Sep 22BuyUS$145,600Donegal Mutual Insurance CompanyCompany10,000US$14.56
01 Sep 22BuyUS$289,500Donegal Mutual Insurance CompanyCompany20,000US$14.53
30 Aug 22BuyUS$140,822Donegal Mutual Insurance CompanyCompany9,619US$14.64
26 Aug 22BuyUS$277,249Donegal Mutual Insurance CompanyCompany18,472US$15.02
26 Aug 22BuyUS$148,500Donegal Mutual Insurance CompanyCompany10,000US$14.85
24 Aug 22BuyUS$261,343Donegal Mutual Insurance CompanyCompany17,414US$15.08
23 Aug 22BuyUS$1,091,965Donegal Mutual Insurance CompanyCompany70,870US$15.41
22 Aug 22BuyUS$295,089Donegal Mutual Insurance CompanyCompany19,162US$15.49
18 Aug 22BuyUS$297,844Donegal Mutual Insurance CompanyCompany19,247US$15.48
16 Aug 22BuyUS$153,800Donegal Mutual Insurance CompanyCompany10,000US$15.38
15 Aug 22BuyUS$151,965Donegal Mutual Insurance CompanyCompany9,900US$15.35
12 Aug 22BuyUS$150,700Donegal Mutual Insurance CompanyCompany10,000US$15.07
11 Aug 22BuyUS$294,417Donegal Mutual Insurance CompanyCompany19,900US$14.83
09 Aug 22BuyUS$294,800Donegal Mutual Insurance CompanyCompany20,000US$14.83
05 Aug 22BuyUS$143,700Donegal Mutual Insurance CompanyCompany10,000US$14.37
04 Aug 22BuyUS$140,409Donegal Mutual Insurance CompanyCompany9,771US$14.37
03 Aug 22BuyUS$447,250Donegal Mutual Insurance CompanyCompany30,973US$14.44
02 Aug 22BuyUS$364,663Donegal Mutual Insurance CompanyCompany25,080US$14.54
14 Jun 22BuyUS$326,952Donegal Mutual Insurance CompanyCompany20,295US$16.11
13 Jun 22BuyUS$710,081Donegal Mutual Insurance CompanyCompany44,017US$16.27
09 Jun 22BuyUS$398,485Donegal Mutual Insurance CompanyCompany24,469US$16.31
07 Jun 22BuyUS$525,687Donegal Mutual Insurance CompanyCompany32,166US$16.43
03 Jun 22BuyUS$491,472Donegal Mutual Insurance CompanyCompany30,629US$16.05
01 Jun 22BuyUS$440,538Donegal Mutual Insurance CompanyCompany27,385US$16.17
27 May 22BuyUS$327,165Donegal Mutual Insurance CompanyCompany20,537US$15.95
25 May 22BuyUS$444,844Donegal Mutual Insurance CompanyCompany28,133US$15.83
23 May 22BuyUS$362,302Donegal Mutual Insurance CompanyCompany23,195US$15.70
19 May 22BuyUS$342,067Donegal Mutual Insurance CompanyCompany21,944US$15.62
17 May 22BuyUS$308,152Donegal Mutual Insurance CompanyCompany19,956US$15.50
13 May 22BuyUS$264,530Donegal Mutual Insurance CompanyCompany17,594US$15.06
11 May 22BuyUS$117,844Donegal Mutual Insurance CompanyCompany7,941US$14.84
10 May 22BuyUS$277,436Donegal Mutual Insurance CompanyCompany18,947US$14.68
05 May 22BuyUS$278,742Donegal Mutual Insurance CompanyCompany19,554US$14.34
04 May 22BuyUS$141,205Donegal Mutual Insurance CompanyCompany10,315US$13.83
03 May 22BuyUS$51,872Jack HessIndividual3,778US$13.73
10 Mar 22BuyUS$26,820Jack HessIndividual2,000US$13.41
24 Feb 22BuyUS$26,640Jack HessIndividual2,000US$13.32
23 Nov 21BuyUS$28,360Jack HessIndividual2,000US$14.18

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Top 25 shareholders own 77.65% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
49.58%
Donegal Mutual Insurance Company
16,027,532$222.0m2.62%no data
6.02%
Dimensional Fund Advisors LP
1,945,099$26.9m2.86%0.01%
4.41%
BlackRock, Inc.
1,424,441$19.7m7.99%no data
2.3%
The Vanguard Group, Inc.
743,694$10.3m-3.88%no data
1.62%
Renaissance Technologies LLC
522,711$7.2m-6.43%0.01%
1.32%
Old Republic International Corp., Asset Management Arm
425,500$5.9m0%0.15%
1.14%
Donald Nikolaus
369,699$5.1m0%no data
1.13%
The Philadelphia Trust Company
366,375$5.1m-1.87%0.54%
1.12%
Kennedy Capital Management, Inc.
363,130$5.0m-13.45%0.14%
1.11%
Logan Capital Management, Inc.
358,888$5.0m0%0.29%
0.83%
Geode Capital Management, LLC
269,686$3.7m0.58%no data
0.81%
State Street Global Advisors, Inc.
261,463$3.6m1.99%no data
0.72%
Wells Fargo & Company, Securities and Brokerage Investments
231,707$3.2m0.78%no data
0.6%
BNY Mellon Asset Management
192,381$2.7m-1.33%no data
0.59%
Bridgeway Capital Management, LLC
190,600$2.6m27.83%0.06%
0.58%
Northern Trust Global Investments
187,849$2.6m1.73%no data
0.53%
Nikolaus family foundation, Endowment Arm
170,307$2.4m0%no data
0.5%
Janney Montgomery Scott LLC, Asset Management Arm
162,701$2.3m9.34%0.01%
0.44%
Two Sigma Advisers, LP
141,400$2.0m87.78%0.01%
0.41%
Two Sigma Investments, LP
132,775$1.8m88.11%0.01%
0.41%
Jacobs Levy Equity Management Inc
132,329$1.8m56.93%0.01%
0.4%
Foundry Partners, LLC
130,547$1.8m0%0.11%
0.4%
DePrince, Race & Zollo, Inc.
128,955$1.8m-49.63%0.04%
0.36%
Allspring Global Investments, LLC
117,369$1.6m191.88%no data
0.32%
Citadel Advisors LLC
102,443$1.4m92.07%no data

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$450.028m
  • Shares outstanding: 32.32m
  • Website: https://www.donegalgroup.com

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGIC.BNasdaqGS (Nasdaq Global Select)Class B Common StockUSUSDOct 1986
DGIC.ANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2001

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
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.