Donegal Group Inc.

Donegal Group Inc.

DGICAยทNASDAQ

$16.54

-2.2%
Financial ServicesInsurance - Property & Casualty

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.

At a Glance

Live Snapshot
Market Cap$606.16M
EPS2.2200
P/E Ratio7.45
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 7.5).

Valuation inputs: P/E 7.5, earnings yield +13.4%, momentum -2.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +12.4%, ROIC +11.6%).

Profitability stack: net margin +8.1%, ROE +12.4%, ROIC +11.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +73.2%, momentum -2.2%, net margin +8.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

dgica

Donegal Group Inc. Market vs Earnings Trajectory

DGICA ยท NASDAQ

Loading price and EPS data...

Donegal Group Inc.

Donegal Group Inc. Fair Value Envelope

DGICA ยท NASDAQ

Our analysis suggests that DGICA has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $16.54, this represents a potential HIDDEN relative to our calculated worth for Donegal Group Inc..

Intrinsic Value
Current Price: $16.54
3Y-3722.0%
5Y+23.0%
10Y+91.0%
3Y+15.0%
5Y+26.0%
10Y+42.0%
3Y-4149.0%
5Y+50.0%
10Y+158.0%
3Y+5.0%
5Y-31.0%
10Y+17.0%
3Y+5.0%
5Y-31.0%
10Y+18.0%
3Y+6.0%
5Y+10.0%
10Y+47.0%
Donegal Group Inc.

Donegal Group Inc. Profit Bridge

DGICA ยท NASDAQ
Revenue978.01M
Cost of Goods Sold (717.12M)
Gross Profit260.90M
Operating Expenses (163.31M)
Operating Income97.59M
Interest Expense (1.35M)
Other Income/Expense0.00
Pretax Income97.59M
Income Tax (18.25M)
Net Income79.34M
Net Income
79.34M

Profitability Analysis

Gross Margin

26.7%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

10.0%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

8.1%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

18.7%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

26.68%
Gross Profit Margin
17%
3Y+60.0%
5Y-73.0%
10Y-73.0%
9.98%
Operating Profit Margin
58%
3Y-2427.0%
5Y+23.0%
10Y+66.0%
8.11%
Net Profit Margin
58%
3Y-3612.0%
5Y+19.0%
10Y+81.0%
12.39%
Return on Equity
33%
3Y-3157.0%
5Y+21.0%
10Y+76.0%
3.32%
Return on Assets
53%
3Y-3908.0%
5Y+36.0%
10Y+75.0%
11.61%
Return on Invested Capital
34%
3Y-3220.0%
5Y-81.0%
10Y+12690.0%
DGICA

Donegal Group Inc. Cash Conversion Engine

DGICA ยท NASDAQ
Net Income79.34M
Depreciation & Amortization3.08M
Stock-Based Compensation0.00
Change in Working Capital-11.60M
Others-619.34K
Capital Expenditures-425.00
Free Cash Flow70.20M

Cash Flow Quality Analysis

FCF Conversion Rate

88.5%

Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.

CapEx Intensity

0.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+4.1%

Flat FCF growth. Stable but not expandingโ€”monitor for signs of business maturity or temporary headwinds.

Working Capital Impact

-$11.60M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

dgica

Donegal Group Inc. Funding & Solvency Profile

DGICA ยท NASDAQ
Cash & Cash Equivalents35.50M
Net Receivables197.33M
Inventory0.00
Other Current Assets-197.33M
Total Current Assets36 M
Property, Plant & Equipment0.00
Goodwill & Intangible Assets0.00
Long-Term Investments1.50B
Other Non-Current Assets-1.50B
Total Non-Current Assets0
Total Assets
2.45B

Financial Health Analysis

Debt-to-Equity Ratio

2.77x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

36 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

1% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

dgica

Donegal Group Inc. Street Expectations Map

DGICA ยท NASDAQ

No Target Data

No analyst price targets available for dgica.

dgica

Donegal Group Inc. Insider Positioning

DGICA ยท NASDAQ

During the last 12 months, insiders have purchased $7.10M and sold $1.06M worth of DGICA shares, resulting in $6.04M of net buying activity.

3 Months

Bought

160.9K

2.75M

Sold

0

0.00

Net Activity

+2.8M

+$2.75M

3-6 Months

Bought

87.3K

1.71M

Sold

9.7K

172.40K

Net Activity

+1.5M

+$1.54M

6-9 Months

Bought

134.8K

2.64M

Sold

44.4K

884.01K

Net Activity

+1.8M

+$1.75M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
DMIC

Donegal Mutual Insurance Co

10 Percent Owner

378.5K sharesโ€ข38 transactions

$7.03M

2
MJM

Mahan Jon Marshall

Director

4.5K sharesโ€ข1 transactions

$65K

Top Sellers

1
WDJ

Wagner Daniel J

Officer: Sr. Vp & Treasurer

18.0K sharesโ€ข2 transactions

$356K

2
AKS

Altshuler Kristi Spencer

Officer: Sr. Vice President

12.0K sharesโ€ข1 transactions

$243K

3
DWD

Delamater William Daniel

Officer: Evp & Chief Oper Officer

9.0K sharesโ€ข1 transactions

$159K

4
KKMS

Kraft Kevin Michael Sr

Director

4.5K sharesโ€ข1 transactions

$90K

5
SAB

Szady Annette Brookens

Director

4.5K sharesโ€ข1 transactions

$89K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $6.04M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

6.72:1

Exceptional buy/sell ratio. Buying dramatically outweighs sellingโ€”one of the strongest possible insider signals.

Recent Trend (3 Months)

$2.75M

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Selling

5 insider sellers vs. 2 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.

1.06%
Dividend Yield
1%
3Y-
5Y+8.0%
10Y+31.0%
ย 

dgica Dividend History

DGICA
10Y CAGR +3%
Latest $0.192
Annual $0.9225
5 year growth trend
Last Period: +5%