Donegal Group (DGICA) AI Stock Analysis

• Market Cap: $602.78M
• Dividend Yield: 4.2%
• Average Volume (3M): 169.48K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.18
• Revenue Growth: 3.40%
• EPS Growth: 978.24%
• Country: US
• Employees: 410
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.43
• Shares Outstanding: 30,931,854
• 10 Day Avg. Volume: 171,877
• 30 Day Avg. Volume: 169,484
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: 8.39
• 1Y Price Target: $19.50
• Price Target Upside: 15.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $19.00 ▲(12.29% Upside)

Donegal Group's strong financial performance and positive earnings call results are significant positives, contributing to a high valuation score. However, technical analysis suggests bearish momentum, which tempers the overall score. The company's conservative financial structure and strategic improvements position it well for future growth.

Donegal Group Business Overview & Revenue Model

Company Description

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. It also 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 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 primarily to Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions through approximately 2,300 independent insurance agencies. Donegal Group Inc. was incorporated in 1986 and is headquartered in Marietta, Pennsylvania.

How the Company Makes Money

Donegal Group generates revenue primarily through the underwriting of insurance policies. The company earns premium income from policyholders who pay for coverage against potential risks, such as property damage or liability claims. Key revenue streams include personal and commercial lines of insurance, with a significant portion of income derived from premiums collected. Additionally, Donegal Group invests the funds it collects from premiums, generating investment income from its investment portfolio. This diversified approach to revenue, combining underwriting profits with investment returns, is crucial for the company's financial stability. The company's partnerships with independent agents and brokers also play a significant role in expanding its market reach and enhancing sales, ultimately contributing to its earnings.

Donegal Group Financial Statement Overview

Summary

Donegal Group shows financial resilience with strong equity and consistent revenue growth. However, profitability is a concern due to volatile net income margins. Cash flow generation is positive, but growth is erratic, indicating challenges in cash conversion efficiency.

Income Statement

The income statement shows a mixed performance with steady revenue growth over the years, albeit from a low base. The gross profit margin is consistently high due to the nature of the insurance industry. However, the net profit margin is quite low and volatile, with periods of negative net income, reflecting profitability challenges.

Balance Sheet

The balance sheet indicates a strong equity base with a manageable debt-to-equity ratio, suggesting financial stability. The company maintains a healthy equity ratio, indicating a solid financial foundation. However, the return on equity is inconsistent due to fluctuating net income.

Cash Flow

Cash flow analysis reveals a positive operating cash flow, which is a good sign of operational efficiency. However, the free cash flow growth rate is inconsistent, and the cash flow ratios indicate potential challenges in converting earnings into cash.

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

Donegal Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGICA, the sentiment is Negative. The current price of 16.92 is below the 20-day moving average (MA) of 17.54, below the 50-day MA of 18.50, and below the 200-day MA of 17.01, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DGICA.

Donegal Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTG	77 Outperform	$664.81M	6.20	33.49%	―	9.35%	77.04%
UFCS	76 Outperform	$740.80M	8.26	11.68%	2.20%	14.28%	148.61%
DGICA	71 Outperform	$602.78M	7.10	15.20%	4.20%	3.40%	978.24%
UVE	70 Neutral	$664.64M	10.28	15.60%	3.28%	5.64%	-17.95%
Sector *	67 Neutral	¥815.90B	12.84	9.17%	3.05%	8.46%	12.94%
GBLI	65 Neutral	$409.16M	14.45	4.13%	4.89%	-3.71%	-21.68%
ACIC	63 Neutral	$499.36M	6.21	31.54%	―	23.68%	16.14%

Donegal Group Corporate Events

Donegal Group Declares Quarterly Cash Dividend

On July 17, 2025, Donegal Group Inc. announced 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 August 15, 2025, to stockholders of record as of August 1, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and maintaining its strong financial performance.

The most recent analyst rating on (DGICA) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Donegal Group stock, see the DGICA Stock Forecast page.

Donegal Group to Release Q2 2025 Financial Results

On July 2, 2025, Donegal Group Inc. announced it will release its second-quarter 2025 financial results on July 24, 2025, before NASDAQ market opening. The company will also provide a supplemental investor presentation and a pre-recorded audio webcast featuring management commentary, addressing pre-submitted questions, to offer insights into its financial performance and strategic direction.

The most recent analyst rating on (DGICA) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Donegal Group stock, see the DGICA Stock Forecast page.