Donegal Group Inc (DGICB) stock analysis

DGICBNasdaqFire, Marine & Casualty InsuranceFiscal year ends December 31Also trades as DGICA

Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 4, 2026Score 3/30

$24.99+1.29 (+5.44%)

Close on Oct 30, 2026Market cap –P/E –Yield –

StockData Score

Prices as of Oct 30, 2026How the score works

Weak3 of 30 checks passed

Donegal passes 3 of the 30 checks behind our score; 20 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 0/6
Growth: 0/6
Past performance: 3/6
Financial health: 0/6
Dividend: 0/6

What stands out

Earnings grew over 5 years
Net income grew 8.5% a year on average over the last five fiscal years.
Return on assets over 1%
Return on assets was 2.9%; for a bank or insurer, 1% or more is considered good.
Net margin above its 5-year average
Net margin was 7.4% over the last twelve months, against a 5-year average of 3.3%.

What to watch

Return on equity under 15%
Return on equity was 11.2% over the last twelve months and averaged 5.7% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.
Earnings growth not accelerating
Net income grew -14.2% over the last twelve months, against a 5-year average of 8.5% a year.
Growing slower than the industry
Revenue grew -3.1% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 7.0%.

Valuation0/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
P/S against the industry
Not enough revenue data to compare.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.

Growth0/6

Revenue growing under 10% a year
Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew -14.2% over the last twelve months, against a 5-year average of 8.5% a year.
Growing slower than the industry
Revenue grew -3.1% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 7.0%.
Guidance issued
The latest outlook (full year of 2026 expense ratio impact of allocated costs related to the systems modernization project, Apr 30, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin trend
Banks and insurers do not report gross profit.

Past performance3/6

Return on equity under 15%
Return on equity was 11.2% over the last twelve months and averaged 5.7% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 2.9%; for a bank or insurer, 1% or more is considered good.
Return on equity below the industry
Donegal's return on equity of 11.2% is below the Fire, Marine, and Casualty Insurance median of 18.2%.
Earnings grew over 5 years
Net income grew 8.5% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 7.4% over the last twelve months, against a 5-year average of 3.3%.
Net margin below the industry
Donegal's net margin of 7.4% is below the Fire, Marine, and Casualty Insurance median of 12.9%.

Financial health0/6

Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest coverage
Interest expense is not reported separately.
Short-term liquidity
Insurers do not split assets into current and non-current.
Bankruptcy risk (Altman Z)
The Altman model does not apply to insurers.

Dividend0/6

No dividend
Donegal has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Donegal. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day: $2.07M
Value traded per 1% price move: $2.18M

Downside

Low risk

Typical loss in a bad month: 9.7%
Volatility (annualized): 23%
Sharpe ratio, 1 year: -0.16
Beta to the S&P 500 (5Y): 0.20

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

8.1%+1.3 pts over 5 years

Per year	1 year	3 years	5 years	10 years	Five-year pace
Revenue	-1.2%	+4.9%	+4.7%	+4.4%
Net income	+56.0%	–	+8.5%	+14.2%

Measure	FY2016	FY2020	FY2025	Trend
Return on equity	7.3%	10.9%	13.4%
Return on assets	1.9%	2.6%	3.4%

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin8.1%

Asset turnover0.41×

Equity multiplier3.98×

Return on equity, FY202513.4%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	8.1%	0.41×	3.98×	13.4%
FY2024	5.1%	0.43×	4.49×	9.9%
FY2023	0.5%	0.41×	4.68×	0.9%
FY2022	-0.2%	0.38×	4.43×	-0.4%
FY2021	3.1%	0.37×	4.21×	4.8%
FY2020	6.8%	0.38×	4.22×	10.9%
FY2019	5.8%	0.43×	4.42×	11.1%
FY2018	-4.2%	0.43×	4.21×	-7.7%
FY2017	1.0%	0.44×	3.79×	1.6%
FY2016	4.5%	0.44×	3.73×	7.3%