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Donegal Group Inc. Class B
(NASDAQ:DGICB)
Select Model
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Rating:77Outperform
Price Target:
$27.00
Action:N/A
Date:10/23/26
DGICB scores well due to strong financial footing (notably low leverage and improved profitability), constructive technical trend (price above key moving averages), and appealing valuation (low P/E with a healthy dividend). The main offset is weaker premium/revenue momentum and some cost/loss volatility noted on the earnings call (premium declines, higher expense ratio, and large-fire losses).
Positive Factors
Conservative balance sheet
Very low leverage and a steadily growing equity base give Donegal meaningful financial resilience for an insurer. This supports claims-paying capacity, reduces dependence on external financing, and preserves flexibility to invest in underwriting capabilities or absorb adverse results.
Negative Factors
Premium contraction
Declining premiums weaken the scale available to cover fixed underwriting and administrative costs, making consistent profit growth harder to achieve. Persistent contraction would also limit market expansion and reduce the amount of insurance float available to generate investment income.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a steadily growing equity base give Donegal meaningful financial resilience for an insurer. This supports claims-paying capacity, reduces dependence on external financing, and preserves flexibility to invest in underwriting capabilities or absorb adverse results.
Read all positive factors
Donegal Group Inc. Class B (DGICB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$727.42M
Dividend Yield2.83%
Average Volume (3M)2.94K
Price to Earnings (P/E)9.6
Beta (1Y)0.17
Revenue Growth-3.10%
EPS Growth-18.44%
CountryUS
Employees851
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,577,000
10 Day Avg. Volume2,075
30 Day Avg. Volume2,937
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.96
Price to Sales (P/S)0.63
P/FCF Ratio8.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Donegal Group Inc. Class B Business Overview & Revenue Model
Company Description
Donegal Group Inc., an insurance holding company, provides commercial and personal lines of property and casualty coverages. It operates through three segments: Investment Function, Commercial Lines of Insurance, and Personal Lines of Insurance. T...
How the Company Makes Money
Donegal Group’s earnings are driven mainly by its property and casualty insurance operations and the investment income generated from holding insurance float. On the insurance side, the company writes policies (commercial and personal lines) and e...
Donegal Group Inc. Class B Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
86
Very Positive
Cash Flow
60
Neutral
| 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 Inc. Class B Technical Analysis
Positive
―
Price Trends
21.22
Positive
21.59
Positive
19.34
Positive
Market Momentum
0.49
Negative
67.53
Neutral
99.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGICB, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 18.62, equal to the 50-day MA of 21.22, and equal to the 200-day MA of 19.34, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 67.53 is Neutral, neither overbought nor oversold. The STOCH value of 99.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DGICB.
Donegal Group Inc. Class B Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.