Donegal Group Inc. (DGICB) AI Stock Analysis

Donegal Group Inc., headquartered in Marietta, Pennsylvania, operates as an insurance holding company providing personal and commercial property and casualty insurance solutions across the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions. The company operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. Personal lines encompass private passenger automobile policies covering liability and vehicle physical damage, alongside homeowners policies covering perils such as fire, lightning, windstorm, and theft. Commercial lines cover commercial automobile, commercial multi-peril policies combining liability and physical damage, and workers' compensation insurance providing benefits to injured workers.

Donegal Group increased revenue from $816.5M in FY2021 to $978.0M in FY2025, recording a 5-year revenue CAGR of 4.7%. Revenue rose 5.0% in FY2021, 3.9% in FY2022, 9.3% in FY2023, and 6.7% in FY2024, before contracting 1.2% in FY2025. Operating margin shifted from 3.7% in FY2021 to -0.4% in FY2022, then climbed to 6.7% in FY2023, 6.3% in FY2024, and 10.0% in FY2025. Net income was -$2.0M in FY2022 but recovered to $79.3M in FY2025, with EPS reaching $2.08. In the latest quarter ended June 30, 2026, quarterly revenue fell 2.4% year-over-year, while quarterly earnings grew 30.3%.

As of June 30, 2026, Donegal Group held $492.6M in cash and short-term investments against total debt of $35.0M, resulting in net cash of $457.6M. The company's debt-to-equity ratio stood at 0.05, while the current ratio was 0.74 against shareholders' equity of $666.1M and total assets of $2.48B. For FY2025, operating cash flow and free cash flow both totaled $70.2M. Capital deployment in FY2025 included $425 in capital expenditures and $25.7M in dividends paid, while the 5-year share count change was 1.7%.

At $19.09 per share, Donegal Group trades at a trailing P/E of 9.9x and a price-to-sales ratio of 0.7x, compared to medians of 12.1x and 3.2x, respectively, for its US-listed Financial Services peer group. Its forward P/E is 14.4x, above the peer group median of 10.8x. The stock trades at a price-to-book ratio of 1.0x and an EV-to-revenue ratio of 0.7x. Over the past 1-year period, DGICB generated a return of 33.3%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return of 70.1% trailed SPY's 83.0%.

Donegal Group pays a quarterly dividend with an annualized forward payout of $0.70 per share, delivering a dividend yield of 3.65%. The payout ratio stands at 37.3%. The company has paid dividends for 38 consecutive years and has posted a 5-year annualized dividend growth rate of 4.4%. Its last ex-dividend date occurred on July 31, 2026.

Consensus estimates project revenue of $949.4M for the fiscal year ending December 31, 2026, followed by $947.2M for the next fiscal year, representing an expected revenue decline of 0.2%. Donegal Group has beaten quarterly EPS expectations in 3 of the last 4 quarters. The company's next earnings report is scheduled for October 29, 2026.

This page is an AI-written research summary of Donegal Group Inc. (DGICB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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