Donegal Group, Inc. (DGICA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Trupanion, Inc.

Skyward Specialty Insurance Group, Inc.

CNO Financial Group, Inc.

White Mountains Insurance Group Ltd.

F&G Annuities & Life, Inc.

Donegal Group, Inc.

Baldwin Insurance Group, Inc.

James River Group Holdings Ltd.

Fidelis Insurance Holdings Ltd.

Enstar Group Ltd.

Argo Group International Holdings Ltd.

Why is Donegal Group, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate of 0%

The company has declared Positive results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At USD 20.42 MM has Grown at 307.47%
NET PROFIT(Q) At USD 16.87 MM has Grown at 306.14%
OPERATING CASH FLOW(Y) Highest at USD 78.82 MM

With ROE of 11.99%, it has a attractive valuation with a 1.28 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 23.39%, its profits have risen by 1253.5% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 1329.3

High Institutional Holdings at 43.15%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.51% over the previous quarter.

Market Beating Performance

The stock has generated a return of 23.39% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Donegal Group, Inc. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Donegal Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Donegal Group, Inc.

17.9%

2.19

24.83%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.89%

EBIT Growth (5y)

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

18.71%

Dividend Payout Ratio

45.13%

Pledged Shares

Institutional Holding

43.15%

ROCE (avg)

ROE (avg)

5.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.28

EV to EBIT

EV to EBITDA

161.35

EV to Capital Employed

1.36

EV to Sales

0.64

PEG Ratio

0.01

Dividend Yield

1329.33%

ROCE (Latest)

ROE (Latest)

11.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

PRE-TAX PROFIT(Q)

At USD 20.42 MM has Grown at 307.47%

NET PROFIT(Q)

At USD 16.87 MM has Grown at 306.14%

OPERATING CASH FLOW(Y)

Highest at USD 78.82 MM

ROCE(HY)

Highest at 15.2%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -3.7 %

DIVIDEND PER SHARE(HY)

Highest at USD 0

-7What is not working for the Company

INTEREST(HY)

At USD 0.67 MM has Grown at 116.62%

Here's what is working for Donegal Group, Inc.

Pre-Tax Profit

At USD 20.42 MM has Grown at 307.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 16.87 MM has Grown at 306.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 78.82 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -3.7 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Donegal Group, Inc.

Interest

At USD 0.67 MM has Grown at 116.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)