Donegal Group (DGICA) AI Stock Analysis

• Market Cap: $703.63M
• Dividend Yield: 3.65%
• Average Volume (3M): 118.44K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.16
• Revenue Growth: 0.93%
• EPS Growth: 224.95%
• Country: US
• Employees: 410
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.52
• Shares Outstanding: 31,064,787
• 10 Day Avg. Volume: 112,203
• 30 Day Avg. Volume: 118,436
• PEG Ratio: 0.01
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 7.57
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 6.67
• 1Y Price Target: $21.00
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.15
• Revenue Forecast (FY): $922.48M

• Rating: 62 Neutral
• Price Target: $19.50 ▲(2.04% Upside)

The overall stock score of 62 reflects Donegal Group's solid financial performance and attractive valuation. The company's strong profitability and cash generation capabilities are significant strengths. However, technical analysis indicates some short-term bearish signals, which slightly offset the positive valuation metrics.

Donegal Group Business Overview & Revenue Model

Company Description

Donegal Group Inc. (DGICA) is a property and casualty insurance holding company based in the United States. It operates primarily through its insurance subsidiaries, which provide a range of insurance products including personal and commercial lines of insurance. The company focuses on offering tailored insurance solutions to meet the diverse needs of its clients, with a strong emphasis on customer service and risk management. Donegal Group serves various sectors, including individuals, businesses, and professionals, through its extensive network of independent agents across multiple states.

How the Company Makes Money

Donegal Group generates revenue primarily through the collection of premiums from its insurance policies. The company offers various insurance products, including auto, home, and commercial insurance, which contribute to its core revenue streams. Additionally, Donegal Group earns money from investment income generated from its reserves, which are invested in fixed-income securities and equities. The company has established significant partnerships with independent agents who help distribute its insurance products, expanding its market reach. Overall, the combination of premium collections, investment income, and strategic distribution partnerships plays a crucial role in Donegal Group's financial performance.

Donegal Group Financial Statement Overview

Summary

Donegal Group demonstrates solid profitability and cash generation, despite challenges in revenue growth. The low leverage and stable asset base provide financial stability. While there are areas for improvement, particularly in revenue growth and return on equity, the company's financial health remains sound.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy net profit margin of 8.72% and an EBIT margin of 10.89%, reflecting strong profitability. Historical data shows fluctuating revenue growth, with a notable improvement in net profit margin from previous years.

Balance Sheet

The balance sheet reveals a stable financial structure with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity at 14.58% in the TTM period is moderate, suggesting room for improvement in generating returns for shareholders. The equity ratio is not provided, but the overall asset base appears stable.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate in the TTM period, indicating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of income to cash. Historical data shows variability in cash flow growth, but the recent performance is positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	988.19M	989.61M	927.34M	848.22M	816.47M	777.82M
Gross Profit	446.58M	989.61M	927.34M	848.22M	816.47M	777.82M
EBITDA	111.23M	67.16M	10.01M	1.82M	37.07M	71.19M
Net Income	86.15M	50.86M	4.43M	-1.96M	25.25M	52.82M
Balance Sheet
Total Assets	2.42B	2.34B	2.27B	2.24B	2.26B	2.16B
Cash, Cash Equivalents and Short-Term Investments	512.38M	401.92M	645.45M	606.24M	603.03M	679.13M
Total Debt	35.00M	35.00M	35.00M	35.00M	35.00M	90.00M
Total Liabilities	1.79B	1.79B	1.79B	1.76B	1.72B	1.64B
Stockholders Equity	627.44M	545.78M	479.75M	483.59M	531.04M	517.77M
Cash Flow
Free Cash Flow	88.43M	67.44M	28.58M	67.11M	76.73M	101.04M
Operating Cash Flow	88.43M	67.44M	28.62M	67.11M	76.73M	101.13M
Investing Cash Flow	-96.23M	-48.04M	-16.71M	-98.50M	-62.20M	-99.68M
Financing Cash Flow	17.72M	9.73M	-13.25M	-1.20M	-59.92M	52.32M

Donegal Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGICA, the sentiment is Positive. The current price of 19.11 is below the 20-day moving average (MA) of 19.26, below the 50-day MA of 19.15, and above the 200-day MA of 18.30, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DGICA.

Donegal Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFCS	75 Outperform	$941.99M	8.71	13.21%	1.73%	12.22%	120.73%
SAFT	75 Outperform	$1.15B	13.07	9.97%	5.31%	13.35%	16.56%
UVE	74 Outperform	$935.71M	7.88	27.34%	2.29%	4.61%	73.40%
HRTG	72 Outperform	$837.70M	5.62	41.64%	―	5.92%	93.02%
ACIC	68 Neutral	$570.55M	6.75	29.35%	―	16.34%	-1.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$703.63M	8.14	15.10%	3.65%	0.93%	224.95%

Donegal Group Corporate Events

Donegal Group Reports Strong Q3 2025 Financial Results

Donegal Group Inc. is an insurance holding company that offers property and casualty insurance through its subsidiaries across various states in the United States, known for its strategic modernization efforts and solid financial performance. In the third quarter of 2025, Donegal reported a slight decrease in net premiums earned by 3.4% to $229.8 million, while net income rose to $20.1 million, reflecting a 19.9% increase from the previous year. The company achieved a combined ratio of 95.9%, indicating improved underwriting profitability. Key financial highlights include a 28.8% increase in investment income and a 12.6% rise in book value per share. The commercial lines segment saw a 3.4% increase in net premiums written, while personal lines experienced a 15.9% decrease. The company attributes its performance to strategic underwriting and favorable weather conditions. Looking ahead, Donegal’s management remains optimistic about sustaining excellent financial performance through disciplined underwriting and strategic execution, while continuing to enhance its systems and operations to capitalize on growth opportunities.

Donegal Group Declares Quarterly Cash Dividend

On October 16, 2025, Donegal Group Inc. announced that its board of directors declared a regular quarterly cash dividend of $0.1825 per share for Class A common stock and $0.165 per share for Class B common stock, payable on November 17, 2025, to shareholders of record as of November 3, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and highlights its strategic focus on financial performance and growth opportunities.

The most recent analyst rating on (DGICA) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Donegal Group stock, see the DGICA Stock Forecast page.

Donegal Group to Announce Q3 2025 Financial Results

On October 6, 2025, Donegal Group Inc. announced it will release its third-quarter 2025 financial results on October 30, 2025, before NASDAQ trading begins. The company will also provide a supplemental investor presentation and a pre-recorded audio webcast featuring management commentary and a Q&A session, highlighting its commitment to transparency and stakeholder engagement.

The most recent analyst rating on (DGICA) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Donegal Group stock, see the DGICA Stock Forecast page.