NasdaqGS:DGIC.B

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Executive Summary

Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states.


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DGIC.B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

DGIC.B

0.2%

US Insurance

2.5%

US Market


1 Year Return

-11.9%

DGIC.B

-12.3%

US Insurance

15.9%

US Market

Return vs Industry: DGIC.B underperformed the US Insurance industry which returned -12.1% over the past year.

Return vs Market: DGIC.B underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

DGIC.BIndustryMarket
7 Day4.1%0.2%2.5%
30 Day1.3%6.6%5.8%
90 Day-5.4%16.7%18.2%
1 Year-8.3%-11.9%-10.0%-12.3%18.4%15.9%
3 Year-7.7%-18.5%1.8%-5.9%39.9%30.9%
5 Year-36.1%-46.7%32.3%15.6%72.9%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DGIC.B ($11) is trading above our estimate of fair value ($2.25)

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


Price To Earnings Ratio

PE vs Industry: DGIC.B is good value based on its PE Ratio (6.9x) compared to the US Insurance industry average (14.1x).

PE vs Market: DGIC.B is good value based on its PE Ratio (6.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DGIC.B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DGIC.B is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (1x).


Next Steps

Future Growth

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

-2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGIC.B's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: DGIC.B's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: DGIC.B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DGIC.B's revenue (3.8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: DGIC.B's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DGIC.B's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Donegal Group performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGIC.B has high quality earnings.

Growing Profit Margin: DGIC.B's current net profit margins (5.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: DGIC.B's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: DGIC.B's earnings growth over the past year (225.3%) exceeds its 5-year average (-6% per year).

Earnings vs Industry: DGIC.B earnings growth over the past year (225.3%) exceeded the Insurance industry -5.5%.


Return on Equity

High ROE: DGIC.B's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Donegal Group's financial position?


Financial Position Analysis

Short Term Liabilities: DGIC.B's short term assets ($864.9M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: DGIC.B's short term assets ($864.9M) exceed its long term liabilities ($120.1M).


Debt to Equity History and Analysis

Debt Level: DGIC.B's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: DGIC.B's debt to equity ratio has increased from 12% to 18.4% over the past 5 years.

Debt Coverage: DGIC.B's debt is well covered by operating cash flow (84.1%).

Interest Coverage: DGIC.B's interest payments on its debt are well covered by EBIT (41.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DGIC.B's dividend (4.82%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: DGIC.B's dividend (4.82%) is in the top 25% of dividend payers in the US market (4.51%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.4%), DGIC.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Kevin Burke (54 yo)

6yrs

Tenure

US$1,034,373

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 ($USD1.03M) is below average for companies of similar size in the US market ($USD2.04M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Burke
President6yrsUS$1.03m0.027%
$ 106.8k
Jeffrey Miller
Executive VP & CFO15.33yrsUS$812.70k0.16%
$ 635.5k
Sanjay Pandey
Senior VP & Chief Information Officer11.58yrsUS$661.95k0.023%
$ 89.3k
Richard Kelley
Senior VP & Head of Field Operations2.33yrsUS$651.95k0.11%
$ 434.9k
Daniel Wagner
Senior VP & Treasurer20.58yrsUS$626.95k0.27%
$ 1.1m
Vincent Viozzi
Senior VP & Chief Investment Officer8.58yrsno data0.025%
$ 98.7k
Robert Long
Senior VP & General Counsel2.58yrsno data0.00020%
$ 791.6
Christina Hoffman
Senior VP & Chief Risk Officer7.58yrsno data0.013%
$ 49.9k
William Folmar
Senior Vice Presidentno datano data0.0026%
$ 10.2k
Francis Haefner
Senior Vice Presidentno datano data0.016%
$ 64.2k
Jeffrey Jacobsen
Senior Vice Presidentno datano data0.050%
$ 199.7k
Kristi Altshuler
Senior Vice Presidentno datano data0.14%
$ 545.4k

8.1yrs

Average Tenure

56yo

Average Age

Experienced Management: DGIC.B's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Burke
President6yrsUS$1.03m0.027%
$ 106.8k
Jon Mahan
Independent Director13.58yrsUS$106.55k0.024%
$ 95.3k
Richard Wampler
Independent Director15.58yrsUS$102.25k0.028%
$ 110.5k
Sewell Moore
Independent Director12.58yrsUS$88.70k0.057%
$ 227.1k
Barry Huber
Independent Director5.58yrsUS$94.25k0.024%
$ 93.6k
Scott Berlucchi
Director7.33yrsUS$95.30k0.021%
$ 83.9k
David King
Director0.33yrno datano data
Kevin Kraft
Director10.67yrsUS$109.40k0.038%
$ 149.1k
Dennis Bixenman
Director2.33yrsUS$104.30k0.019%
$ 77.1k
Jack Hess
Independent Director9.33yrsUS$99.65k0.16%
$ 638.0k
Annette Szady
Director0.33yrno datano data

7.3yrs

Average Tenure

66yo

Average Age

Experienced Board: DGIC.B's board of directors are considered experienced (7.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Donegal Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Donegal Group Inc.
  • Ticker: DGIC.B
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$395.790m
  • Shares outstanding: 29.03m
  • Website: https://www.donegalgroup.com

Location

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

Listings

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

Biography

Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 01:15
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.