Donegal Group (DGICA) AI Stock Analysis

• Market Cap: $720.09M
• Dividend Yield: 3.5%
• Average Volume (3M): 115.70K
• Price to Earnings (P/E): 8.4
• 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: 131,595
• 30 Day Avg. Volume: 115,703
• 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: 1.03
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 6.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.15
• Revenue Forecast (FY): $922.48M

• Rating: 62 Neutral
• Price Target: $20.50 ▲(7.27% Upside)

The overall stock score of 62 reflects Donegal Group's solid financial performance and attractive valuation. The company's profitability and cash generation are strong, although revenue growth and return on equity present areas for improvement. The technical analysis indicates a neutral trend, while the low P/E ratio and attractive dividend yield enhance the stock's appeal.

Positive Factors

Cash Generation

Strong cash generation capabilities indicate efficient operations and financial stability, allowing for reinvestment and shareholder returns.

Profitability

A strong net profit margin reflects effective cost management and pricing power, supporting long-term profitability and competitive positioning.

Dividend Policy

Consistent dividend payments demonstrate financial health and a commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can limit future expansion and market share, potentially impacting long-term financial performance and competitiveness.

Return on Equity

Moderate return on equity suggests potential inefficiencies in using equity capital, which may affect shareholder value creation over time.

Revenue Growth Variability

Inconsistent revenue growth can indicate market volatility or strategic misalignment, posing risks to sustained business expansion and stability.

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: Negative

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 19.93, below the 50-day MA of 19.43, and above the 200-day MA of 18.65, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.72 is Negative, 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
SAFT	75 Outperform	$1.17B	13.34	9.97%	4.66%	13.35%	16.56%
ACIC	73 Outperform	$617.86M	7.40	29.35%	―	16.34%	-1.26%
HRTG	72 Outperform	$898.90M	6.13	41.64%	―	5.92%	93.02%
UFCS	71 Outperform	$937.91M	8.67	13.21%	1.73%	12.22%	120.73%
UVE	69 Neutral	$926.17M	7.80	27.34%	2.32%	4.61%	73.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$720.09M	8.39	15.10%	3.50%	0.93%	224.95%

Donegal Group Corporate Events

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.

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.