Want to see DGICA full AI Analyst Report?
Donegal Group (DGICA) AI Stock Analysis
Donegal Group
(NASDAQ:DGICA)
The score is driven primarily by improved profitability and a strong, conservatively levered balance sheet, alongside attractive valuation (low P/E and ~4% dividend yield). The main constraints are weak/uncertain revenue trajectory and cash-flow volatility, while technical indicators remain broadly neutral and the latest earnings call supports steady underwriting strength but acknowledges premium declines and modest growth expectations.
Donegal Group (DGICA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $694.87M
- Dividend Yield
- 4.06%
- Average Volume (3M)
- 117.06K
- Price to Earnings (P/E)
- 9.8
- Beta (1Y)
- 0.26
- Revenue Growth
- -3.37%
- EPS Growth
- -22.70%
- Country
- US
- Employees
- 851
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Property & Casualty
Donegal Group Business Overview & Revenue Model
Company Description
Donegal Group, Inc. is an insurance holding company, which engages in the provision of property and casualty insurance to businesses and individuals. It operates through the following segments: Investment Function, Personal Lines of Insurance, and Co...
How the Company Makes Money
Donegal Group primarily makes money through (1) insurance underwriting and (2) investment income on its investment portfolio. 1) Underwriting revenue (premiums) and underwriting profit/loss: - The company earns insurance premiums when it issues prope...
Donegal Group Earnings Call Summary
The call was broadly positive. Management highlighted a ninth consecutive quarter of underwriting profitability, strong personal lines results, commercial new business growth, higher investment income, technology modernization progress, and improving book value. These positives were tempered by declining premiums, soft-market growth pressure, higher expense and combined ratios, elevated commercial workers' compensation losses, lower commercial retention, and investment losses. The positive operating and financial achievements significantly outweighed the stated challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Donegal expects deployment of its Guidewire Cloud claims and billing systems in the H1 of 2027, completion of legacy mainframe policy conversions in May of 2027, and completion of its policy administration system migration to the cloud in 2028. The company expects a continuation of exposure decreases throughout the remainder of this year, projects investment rates of 5.25%-5.50% for the Q4 of 2026, anticipates $90 million in projected portfolio cash flow over the next 12 months at a current average yield of 4%, and expects the 135 basis points in yield boost from bonds reinvested during Q3 to increase net investment income by upwards of $1 million annually, with a projected $450,000 annual boost to investment income going forward from a $15.5 million swap. Its 2027 growth plans will be relatively modest in recognition of ongoing market challenges.
Donegal Group Financial Statement Overview
Summary
Profitability has clearly improved (net margin ~8.1% in 2025; ~7.4% TTM and EBIT margin ~10.1% in 2025), and leverage is conservative (debt-to-equity ~0.05–0.07) with equity growth supporting resilience. However, the reported top-line weakness (flat in 2025 and sharply down in TTM) and inconsistent/volatile cash-flow conversion reduce confidence in the durability of results.
Income Statement
62PositiveBalance Sheet
78PositiveCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 963.18M | 978.01M | 989.61M | 927.34M | 848.22M | 816.47M |
| Gross Profit | 260.77M | 260.90M | 225.18M | 163.95M | 141.71M | 167.02M |
| EBITDA | 91.54M | 102.02M | 67.16M | 10.01M | 1.82M | 37.07M |
| Net Income | 71.09M | 79.34M | 50.86M | 4.43M | -1.96M | 25.25M |
Balance Sheet | ||||||
| Total Assets | 2.48B | 2.39B | 2.34B | 2.27B | 2.24B | 2.26B |
| Cash, Cash Equivalents and Short-Term Investments | 492.61M | 521.17M | 695.38M | 645.45M | 606.24M | 603.03M |
| Total Debt | 35.00M | 35.00M | 35.00M | 35.00M | 35.00M | 35.00M |
| Total Liabilities | 1.82B | 1.75B | 1.79B | 1.79B | 1.76B | 1.72B |
| Stockholders Equity | 666.11M | 640.42M | 545.78M | 479.75M | 483.59M | 531.04M |
Cash Flow | ||||||
| Free Cash Flow | 58.39M | 70.20M | 67.44M | 28.58M | 67.11M | 76.73M |
| Operating Cash Flow | 58.39M | 70.20M | 67.44M | 28.62M | 67.11M | 76.73M |
| Investing Cash Flow | -74.06M | -91.13M | -48.04M | -16.71M | -98.50M | -62.20M |
| Financing Cash Flow | -18.04M | -5.21M | 9.73M | -13.25M | -1.20M | -59.92M |
Donegal Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGICA, the sentiment is Positive. The current price of 18.72 is above the 20-day moving average (MA) of 18.56, above the 50-day MA of 18.71, and above the 200-day MA of 17.92, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DGICA.
Donegal Group Risk Analysis
Donegal Group disclosed 23 risk factors in its most recent earnings report. Donegal Group reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksDonegal Group Peers Comparison
Overall Rating
KINS83Outperform
UFCS80Outperform
SIGI78Outperform
SAFT77Outperform- DGICA68Neutral
NODK54Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| KINS | 83Outperform | $291.98M | 8.13 | 0.11% | 1.04% | 34.04% | 15.59% |
| UFCS | 80Outperform | $1.46B | 10.39 | 14.96% | 1.34% | 11.18% | 52.50% |
| SIGI | 78Outperform | $5.83B | 11.85 | 14.29% | 1.74% | 4.50% | 28.39% |
| SAFT | 77Outperform | $1.53B | 22.20 | 7.79% | 3.54% | 7.04% | -18.57% |
| DGICA | 68Neutral | $729.84M | 9.80 | 10.57% | 4.06% | -3.37% | -22.70% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| NODK | 54Neutral | $305.25M | 39.68 | 3.18% | ― | -13.85% | 354.69% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DGICA | Donegal | 18.72 | 0.79 | 4.38% | |
| KINS | Kingstone | 20.17 | 5.45 | 37.02% | |
| SAFT | Safety Insurance | 103.90 | 38.75 | 59.48% | |
| SIGI | Selective Insurance | 98.83 | 26.27 | 36.20% | |
| UFCS | United Fire Group | 56.83 | 26.84 | 89.50% | |
| NODK | NI Holdings, Inc. | 14.96 | 1.70 | 12.82% |
Donegal Group Corporate Events
Donegal Group Announces Regular Quarterly Cash Dividend
PositiveOn October 15, 2026, Donegal Group Inc. announced that its board of directors declared a regular quarterly cash dividend of $0.1925 per share for its Class A common stock and $0.175 per share for its Class B common stock. The dividends are scheduled...
Donegal Group Schedules Third-Quarter 2026 Results Release
NeutralDonegal Group Inc., a property and casualty insurance holding company operating in 21 Mid-Atlantic, Midwestern, Southern and Southwestern states, continues to leverage its A.M. Best A (Excellent) rating and NASDAQ listings for its Class A and Class B...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026