Donegal Group Inc.
Donegal Group Inc. Fundamental Analysis
Donegal Group Inc. (DGICB) shows moderate financial fundamentals with a PE ratio of 6.96, profit margin of 8.11%, and ROE of 12.91%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 6.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DGICB's fundamental strength across five key dimensions:
Efficiency Score
WeakDGICB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDGICB trades at attractive valuation levels.
Growth Score
ModerateDGICB shows steady but slowing expansion.
Financial Health Score
ModerateDGICB shows balanced financial health with some risks.
Profitability Score
WeakDGICB struggles to sustain strong margins.
Key Financial Metrics
Is DGICB Expensive or Cheap?
P/E Ratio
DGICB trades at 6.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DGICB's PEG of -0.57 indicates potential undervaluation.
Price to Book
The market values Donegal Group Inc. at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.34 times EBITDA. This is generally considered low.
How Well Does DGICB Make Money?
Net Profit Margin
For every $100 in sales, Donegal Group Inc. keeps $8.11 as profit after all expenses.
Operating Margin
Core operations generate 7.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.91 in profit for every $100 of shareholder equity.
ROA
Donegal Group Inc. generates $3.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Donegal Group Inc. generates limited operating cash flow of $104.21M, signaling weaker underlying cash strength.
Free Cash Flow
Donegal Group Inc. produces free cash flow of $104.21M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.83 in free cash annually.
FCF Yield
DGICB converts 13.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How DGICB Stacks Against Its Sector Peers
| Metric | DGICB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.96 | 18.86 | Better (Cheaper) |
| ROE | 12.91% | 847.00% | Weak |
| Net Margin | 8.11% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 3.32% | -21543.00% (disorted) | Weak |
DGICB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Donegal Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.47%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-6.63%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-23.55%
Industry Style: Value, Dividend, Cyclical
Declining