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Donegal Group

Nasdaq:DGIC.B
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DGIC.B
Nasdaq
$413M
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

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. The last earnings update was 73 days ago. More info.


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DGIC.B Share Price and Events
7 Day Returns
-1%
NasdaqGS:DGIC.B
-0.2%
US Insurance
-0.3%
US Market
1 Year Returns
7.8%
NasdaqGS:DGIC.B
14.9%
US Insurance
3.9%
US Market
DGIC.B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Donegal Group (DGIC.B) -1% 0% 24.4% 7.8% -6.5% -40.2%
US Insurance -0.2% 2.5% 9.4% 14.9% 39.3% 51.4%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • DGIC.B underperformed the Insurance industry which returned 14.9% over the past year.
  • DGIC.B outperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
DGIC.B
Industry
5yr Volatility vs Market

DGIC.B Value

 Is Donegal Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Donegal Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Donegal Group.

NasdaqGS:DGIC.B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $16.21 * 3%
$0.49
Book Value of Equity per Share Median Book Value from the past 5 years. $16.21
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:DGIC.B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 21%) (9.68%))
0.824
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.824 * 5.96%)
7.64%

Discounted Cash Flow Calculation for NasdaqGS:DGIC.B using Excess Returns Model Model

The calculations below outline how an intrinsic value for Donegal Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:DGIC.B Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (3% – 7.64%) * $16.21)
$-0.75
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.75 / (7.64% - 2.73%)
$-15.33
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.21 + $-15.33
$0.88
NasdaqGS:DGIC.B Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.88
Current discount Discount to share price of $14.50
= -1 x ($14.50 - $0.88) / $0.88
-1539.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Donegal Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Donegal Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Donegal Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:DGIC.B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.30
NasdaqGS:DGIC.B Share Price ** NasdaqGS (2019-07-16) in USD $14.5
United States of America Insurance Industry PE Ratio Median Figure of 89 Publicly-Listed Insurance Companies 17.51x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Donegal Group.

NasdaqGS:DGIC.B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:DGIC.B Share Price ÷ EPS (both in USD)

= 14.5 ÷ 0.30

48.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Donegal Group is overvalued based on earnings compared to the US Insurance industry average.
  • Donegal Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Donegal Group's expected growth come at a high price?
Raw Data
NasdaqGS:DGIC.B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
40.3%per year
United States of America Insurance Industry PEG Ratio Median Figure of 62 Publicly-Listed Insurance Companies 1.74x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:DGIC.B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 48.68x ÷ 40.3%

1.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Donegal Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Donegal Group's assets?
Raw Data
NasdaqGS:DGIC.B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.10
NasdaqGS:DGIC.B Share Price * NasdaqGS (2019-07-16) in USD $14.5
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NasdaqGS:DGIC.B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:DGIC.B Share Price ÷ Book Value per Share (both in USD)

= 14.5 ÷ 15.10

0.96x

* Primary Listing of Donegal Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Donegal Group is good value based on assets compared to the US Insurance industry average.
X
Value checks
We assess Donegal Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Donegal Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DGIC.B Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
40.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Donegal Group expected to grow at an attractive rate?
  • Donegal Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Donegal Group's earnings growth is expected to exceed the United States of America market average.
  • Donegal Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:DGIC.B Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:DGIC.B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 40.3%
NasdaqGS:DGIC.B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.5%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:DGIC.B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:DGIC.B Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 885 51 1
2020-12-31 821 33 2
2019-12-31 808 35 1
NasdaqGS:DGIC.B Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 797 64 8
2018-12-31 772 64 -33
2018-09-30 776 78 -21
2018-06-30 762 73 -15
2018-03-31 749 72 -16
2017-12-31 739 81 7
2017-09-30 725 76 15
2017-06-30 715 77 13
2017-03-31 701 68 24
2016-12-31 688 60 31
2016-09-30 675 66 27
2016-06-30 660 62 28

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Donegal Group's earnings are expected to grow significantly at over 20% yearly.
  • Donegal Group's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:DGIC.B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Donegal Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DGIC.B Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NasdaqGS:DGIC.B Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.30
2018-12-31 -1.16
2018-09-30 -0.73
2018-06-30 -0.52
2018-03-31 -0.58
2017-12-31 0.26
2017-09-30 0.57
2017-06-30 0.49
2017-03-31 0.90
2016-12-31 1.16
2016-09-30 1.02
2016-06-30 1.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Donegal Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Donegal Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Donegal Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DGIC.B Past Performance

  How has Donegal Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Donegal Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Donegal Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Donegal Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Donegal Group has become profitable in the last year making it difficult to compare the US Insurance industry average.
Earnings and Revenue History
Donegal Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Donegal Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DGIC.B Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 797.21 8.44
2018-12-31 771.83 -32.76
2018-09-30 775.78 -20.54
2018-06-30 761.59 -14.64
2018-03-31 749.38 -16.17
2017-12-31 739.03 7.12
2017-09-30 725.46 15.45
2017-06-30 715.06 13.15
2017-03-31 701.33 24.06
2016-12-31 688.42 30.80
2016-09-30 675.02 27.23
2016-06-30 659.51 28.10
2016-03-31 647.68 25.98
2015-12-31 636.39 20.99
2015-09-30 624.18 23.49
2015-06-30 613.52 26.55
2015-03-31 600.98 22.03
2014-12-31 586.55 14.54
2014-09-30 574.35 19.62
2014-06-30 563.55 18.52
2014-03-31 553.58 19.21
2013-12-31 547.11 26.32
2013-09-30 539.62 22.98
2013-06-30 531.72 22.16
2013-03-31 523.51 21.56
2012-12-31 514.98 23.09
2012-09-30 510.29 15.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Donegal Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Donegal Group used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • Donegal Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Donegal Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Donegal Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DGIC.B Health

 How is Donegal Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Donegal Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Donegal Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Donegal Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Donegal Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 19.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Donegal Group Company Filings, last reported 3 months ago.

NasdaqGS:DGIC.B Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 429.20 40.00 85.45
2018-12-31 398.87 65.00 69.34
2018-09-30 415.54 65.00 60.35
2018-06-30 419.67 65.00 65.44
2018-03-31 425.35 64.00 50.25
2017-12-31 448.70 64.00 48.88
2017-09-30 448.73 74.00 42.27
2017-06-30 443.13 74.00 60.99
2017-03-31 446.71 74.00 43.92
2016-12-31 438.62 74.00 33.96
2016-09-30 444.01 79.00 41.38
2016-06-30 439.87 82.50 39.09
2016-03-31 426.20 86.00 44.32
2015-12-31 408.39 86.00 41.57
2015-09-30 441.57 53.00 49.52
2015-06-30 437.14 52.50 56.07
2015-03-31 425.53 60.00 43.79
2014-12-31 416.13 58.50 55.87
2014-09-30 414.94 61.00 47.43
2014-06-30 405.48 65.00 51.03
2014-03-31 401.59 66.00 33.52
2013-12-31 396.88 63.00 127.31
2013-09-30 389.08 69.50 61.47
2013-06-30 384.80 66.50 39.91
2013-03-31 404.72 66.50 35.19
2012-12-31 400.03 72.47 43.63
2012-09-30 402.89 70.16 52.83
  • Donegal Group's level of debt (9.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (16.4% vs 9.3% today).
  • Debt is well covered by operating cash flow (159.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Donegal Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Donegal Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DGIC.B Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.52%
Current annual income from Donegal Group dividends.
If you bought $2,000 of Donegal Group shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Donegal Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Donegal Group's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:DGIC.B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:DGIC.B Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NasdaqGS:DGIC.B Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.510 3.788
2018-12-20 0.500 4.166
2018-11-01 0.500 4.014
2018-07-31 0.500 3.673
2018-04-19 0.500 3.667
2017-12-22 0.490 3.359
2017-10-19 0.490 3.322
2017-07-24 0.490 3.469
2017-04-20 0.490 3.212
2016-12-16 0.480 2.942
2016-10-21 0.480 2.756
2016-07-22 0.480 2.658
2016-04-21 0.480 3.228
2015-12-22 0.470 3.343
2015-11-17 0.470 2.705
2015-09-29 0.470 2.522
2015-04-16 0.470 2.396
2014-12-22 0.464 2.189
2014-12-16 0.464 2.186
2014-07-17 0.464 1.972
2014-04-17 0.464 2.078
2013-12-19 0.460 1.885
2013-10-18 0.460 2.105
2013-07-22 0.460 2.316
2013-04-19 0.460 2.149
2012-12-24 0.440 2.131
2012-10-22 0.440 2.328
2012-07-25 0.440 2.478
2012-05-03 0.440 2.590
2011-12-20 0.430 2.596
2011-10-31 0.430 2.636
2011-07-25 0.430 2.456
2011-04-25 0.430 2.481
2010-12-22 0.410 2.392
2010-11-08 0.410 2.401
2010-07-26 0.410 2.443
2010-04-16 0.410 2.380
2009-12-17 0.400 2.318
2009-10-16 0.400 2.288
2009-07-20 0.400 2.612
2009-04-22 0.400 2.704
2008-12-22 0.370 2.260
2008-10-20 0.370 2.279

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Donegal Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Donegal Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Donegal Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Donegal Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DGIC.B Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Burke
COMPENSATION $973,025
AGE 53
TENURE AS CEO 4.9 years
CEO Bio

Mr. Kevin Gerard Burke has been the Chief Executive Officer and President of Donegal Group Inc. since July 16, 2015. He serves as President & CEO at Le Mars Insurance Company since September 01, 2018. Mr. Burke served as the Chief Operating Officer and Executive Vice President of Donegal Group Inc. from April 14, 2014 to July 17, 2015. He serves as the President and CEO of Atlantic States Insurance Company. Mr. Burke served as Senior Vice President of Human Resources at Donegal Mutual and Donegal Group Inc. from 2005 to April 14, 2014. He serves as President and CEO at Southern Insurance Company of Virginia since September 01, 2018. He serves as Director of Donegal Mutual Insurance Company since 2014 and President, CEO since September 01, 2018. Mr. Burke previously served as Vice President of Human Resources at Donegal Mutual and Donegal Group Inc. from 2001 to 2005. He served as an Acting Chief Executive Officer of Donegal Group Inc. since August 2014. Mr. Burke has been a Director of Donegal Group Inc. since October 20, 2016 and also serves as its Chairman of the Board.

CEO Compensation
  • Kevin's compensation has increased in line with Donegal Group recently becoming profitable.
  • Kevin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Donegal Group management team in years:

7.5
Average Tenure
55
Average Age
  • The average tenure for the Donegal Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kevin Burke

TITLE
President
COMPENSATION
$973K
AGE
53
TENURE
4.9 yrs

Jeff Miller

TITLE
Executive VP & CFO
COMPENSATION
$608K
AGE
55
TENURE
14.3 yrs

Sanjay Pandey

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$466K
AGE
52
TENURE
10.5 yrs

Dan Wagner

TITLE
Senior VP & Treasurer
COMPENSATION
$464K
AGE
58
TENURE
14.5 yrs

Richard Kelley

TITLE
Senior VP & Head of Field Operations
COMPENSATION
$601K
AGE
64
TENURE
1.3 yrs

Vincent Viozzi

TITLE
Senior VP & Chief Investment Officer
TENURE
7.5 yrs

Robert Long

TITLE
Senior VP & General Counsel
TENURE
1.5 yrs

Christina Hoffman

TITLE
Senior Vice President

Sheri Smith

TITLE
VP & Corporate Secretary

Jason Crumbling

TITLE
VP & Controller
Board of Directors Tenure

Average tenure and age of the Donegal Group board of directors in years:

10.5
Average Tenure
69
Average Age
  • The average tenure for the Donegal Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Kevin Burke

TITLE
President
COMPENSATION
$973K
AGE
53
TENURE
1.5 yrs

Richard Wampler

TITLE
Director
COMPENSATION
$108K
AGE
78
TENURE
14.5 yrs

Jon Mahan

TITLE
Director
COMPENSATION
$112K
AGE
49
TENURE
12.5 yrs

Kevin Kraft

TITLE
Director
COMPENSATION
$114K
AGE
67
TENURE
9.6 yrs

Jack Hess

TITLE
Director
COMPENSATION
$105K
AGE
71
TENURE
8.3 yrs

Robert Bolinger

TITLE
Director
COMPENSATION
$101K
AGE
82
TENURE
33.3 yrs

Patricia Gilmartin

TITLE
Director
COMPENSATION
$100K
AGE
79
TENURE
33.3 yrs

Trez Moore

TITLE
Director
COMPENSATION
$95K
AGE
65
TENURE
11.5 yrs

Dennis Bixenman

TITLE
Director
COMPENSATION
$110K
AGE
72
TENURE
1.3 yrs

Scott Berlucchi

TITLE
Director
COMPENSATION
$101K
AGE
61
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Donegal Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Donegal Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DGIC.B News

Simply Wall St News

Should We Be Cautious About Donegal Group Inc.'s (NASDAQ:DGIC.B) ROE Of 2.0%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Donegal Group: 2.0% = US$8.4m ÷ US$429m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Donegal Group Have A Good Return On Equity? … Combining Donegal Group's Debt And Its 2.0% Return On Equity While Donegal Group does have a tiny amount of debt, with debt to equity of just 0.093, we think the use of debt is very modest.

Simply Wall St -

Here's How We Evaluate Donegal Group Inc.'s (NASDAQ:DGIC.B) Dividend

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … In this case, Donegal Group likely looks attractive to investors, given its 4.1% dividend yield and a payment history of over ten years. … There are a few simple ways to reduce the risks of buying Donegal Group for its dividend, and we'll go through these below.

Simply Wall St -

Could The Donegal Group Inc. (NASDAQ:DGIC.B) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Donegal Group Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St -

Those Who Purchased Donegal Group Shares Five Years Ago Have A 48% Loss To Show For It

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … In the last half decade Donegal Group saw its share price fall as its EPS declined below zero.

Simply Wall St -

Do Institutions Own Donegal Group Inc (NASDAQ:DGIC.B) Shares?

A look at the shareholders of Donegal Group Inc (NASDAQ:DGIC.B) can tell us which group is most powerful. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … With a market capitalization of US$398m, Donegal Group is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Should You Worry About Donegal Group Inc's (NASDAQ:DGIC.B) CEO Pay Check?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Kevin Burke's Compensation Compare With Similar Sized Companies. … According to our data, Donegal Group Inc has a market capitalization of US$397m, and pays its CEO total annual compensation worth US$678k.

Simply Wall St -

Who Are The Largest Shareholders In Donegal Group Inc (NASDAQ:DGIC.B)?

I am going to take a deep dive into Donegal Group Inc’s (NASDAQ:DGIC.B) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

3 Days Left To Cash In On Donegal Group Inc (NASDAQ:DGIC.B) Dividend, Should Investors Buy?

View our latest analysis for Donegal Group Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Does it pay an annual yield higher than 75% of dividend payers? … In terms of its peers, Donegal Group generates a yield of 3.52%, which is high for Insurance stocks but still below the market's top dividend payers. … Next Steps: Whilst there are few things you may like about Donegal Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Should Income Investors Buy Donegal Group Inc (DGICB) Before Its Ex-Dividend?

If you are interested in cashing in on Donegal Group Inc's (NASDAQ:DGIC.B) upcoming dividend of $0.12 per share, you only have 3 days left to buy the shares before its ex-dividend date, 31 October 2017, in time for dividends payable on the 15 November 2017. … View our latest analysis for Donegal Group Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is their annual yield among the top 25% of dividend payers? … NasdaqGS:DGIC.B Historical Dividend Yield Oct 28th 17 How well does Donegal Group fit our criteria?

Simply Wall St -

DGIC.B Company Info

Description

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. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. 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. It also offers homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft; and liability of the insured arising from injury to other persons or their property. In addition, the company offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies that provide protection to businesses against various perils, primarily combining liability and physical damage coverages; and workers’ compensation policies, which provide benefits to employees for injuries sustained during employment. The company markets its insurance products through a network of approximately 2,400 independent insurance agencies. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance Company.

Details
Name: Donegal Group Inc.
DGIC.B
Exchange: NasdaqGS
Founded: 1986
$413,229,587
28,482,795
Website: http://www.donegalgroup.com
Address: Donegal Group Inc.
1195 River Road,
Marietta,
Pennsylvania, 17547,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS DGIC.B Class B Common Stock Nasdaq Global Select US USD 29. Oct 1986
NasdaqGS DGIC.A Class A Common Stock Nasdaq Global Select US USD 20. Apr 2001
Number of employees
Current staff
Staff numbers
0
Donegal Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:35
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.