📊 DGICB Key Takeaways
Is Donegal Group Inc. (DGICB) a Good Investment?
Despite a debt-free balance sheet and positive free cash flow, Donegal Group exhibits severe fundamental weaknesses: declining revenue (-1.2% YoY) coupled with catastrophically poor capital returns (ROE 1.8%, ROA 0.5%) indicate structural issues in capital deployment efficiency. The 56% net income growth appears driven by cost management rather than organic growth, masking an underlying business contraction in an already thin-margin industry.
Donegal Group shows improving fundamental performance, with net income up 56.0% year over year, solid 10.0% operating margin, and healthy 12.4% ROE despite slightly lower revenue. The balance sheet appears conservative with no meaningful leverage and positive free cash flow, suggesting earnings quality and financial resilience are improving, though top-line growth remains modest.
Donegal Group Inc. Key Strengths (DGICB)
- Zero long-term debt with strong interest coverage (42.4x)
- Positive free cash flow of $20M with 8.5% FCF margin
- Substantial asset base of $2.4B provides financial stability
- 56% net income growth YoY shows improved bottom-line management
- Net income growth materially outpaced revenue, indicating stronger underwriting and operating efficiency
- Debt-free capital structure and strong interest coverage support balance sheet stability
- Positive operating cash flow and free cash flow show profits are being converted into cash
DGICB Stock Risks: Donegal Group Inc. Investment Risks
- Revenue declining at -1.2% YoY indicating loss of market share or business contraction
- ROE of 1.8% and ROA of 0.5% are unacceptably low, well below cost of capital
- Net margin of 4.9% and operating margin of 6% are thin for insurance sector
- 9 insider Form 4 filings in 90 days warrants monitoring for insider activity signals
- Capital efficiency deterioration suggests inability to deploy equity productively
- Revenue declined 1.2% year over year, which may signal limited premium growth or softer business volume
- Insurance earnings can be volatile if claims severity, catastrophe losses, or reserve development worsen
- Cash balances are relatively modest compared with total liabilities, increasing reliance on ongoing investment and underwriting discipline
Key Metrics to Watch
- Revenue trend reversal (current -1.2% decline must stabilize/turn positive)
- Return on Equity improvement (target minimum 8-10%+ for sector)
- Operating margin expansion and underwriting profitability metrics
- Free cash flow sustainability and capital allocation decisions
- Combined ratio and underwriting margin trend
- Premium growth and reserve development quality
Donegal Group Inc. (DGICB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DGICB Profit Margin, ROE & Profitability Analysis
DGICB vs Finance Sector: How Donegal Group Inc. Compares
How Donegal Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Donegal Group Inc. Stock Overvalued? DGICB Valuation Analysis 2026
Based on fundamental analysis, Donegal Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Donegal Group Inc. Balance Sheet: DGICB Debt, Cash & Liquidity
DGICB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Donegal Group Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion.
DGICB Revenue Growth, EPS Growth & YoY Performance
DGICB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $236.0M | $11.5M | N/A |
| Q3 2025 | $245.9M | $4.2M | N/A |
| Q2 2025 | $246.8M | $4.2M | N/A |
| Q1 2025 | $241.1M | $6.0M | N/A |
| Q3 2024 | $233.9M | -$805.3K | N/A |
| Q2 2024 | $229.2M | $2.0M | N/A |
| Q1 2024 | $224.7M | $5.2M | N/A |
| Q3 2023 | $212.8M | -$805.3K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Donegal Group Inc. Dividends, Buybacks & Capital Allocation
DGICB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Donegal Group Inc. (CIK: 0000800457)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780576291.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780415062.xml | View → |
| May 29, 2026 | 4 | xslF345X06/wk-form4_1780059189.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779971059.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779821075.xml | View → |
❓ Frequently Asked Questions about DGICB
What is the AI rating for DGICB?
Donegal Group Inc. (DGICB) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DGICB's key strengths?
Claude: Zero long-term debt with strong interest coverage (42.4x). Positive free cash flow of $20M with 8.5% FCF margin. ChatGPT: Net income growth materially outpaced revenue, indicating stronger underwriting and operating efficiency. Debt-free capital structure and strong interest coverage support balance sheet stability.
What are the risks of investing in DGICB?
Claude: Revenue declining at -1.2% YoY indicating loss of market share or business contraction. ROE of 1.8% and ROA of 0.5% are unacceptably low, well below cost of capital. ChatGPT: Revenue declined 1.2% year over year, which may signal limited premium growth or softer business volume. Insurance earnings can be volatile if claims severity, catastrophe losses, or reserve development worsen.
What is DGICB's revenue and growth?
Donegal Group Inc. reported revenue of $236.0M.
Does DGICB pay dividends?
Donegal Group Inc. pays dividends, with $6.7M distributed to shareholders in the trailing twelve months.
Where can I find DGICB SEC filings?
Official SEC filings for Donegal Group Inc. (CIK: 0000800457) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DGICB's EPS?
Donegal Group Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DGICB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Donegal Group Inc. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DGICB stock overvalued or undervalued?
Valuation metrics for DGICB: ROE of 1.8% (sector avg: 12%), net margin of 4.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is DGICB's AI grade for 2026?
Our dual AI analysis gives Donegal Group Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DGICB's free cash flow?
Donegal Group Inc.'s operating cash flow is $20.2M, with capital expenditures of $133.5K. FCF margin is 8.5%.
How does DGICB compare to other Finance stocks?
Vs Finance sector averages: Net margin 4.9% (avg: 25%), ROE 1.8% (avg: 12%), current ratio N/A (avg: 1.2).