Donegal Group, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 36.
Our analysis is based on comparing Donegal Group, Inc. with the following peers – Travelers Companies, Inc., Federated National Holding Company, RLI Corp., State Auto Financial Corporation, Cincinnati Financial Corporation, W. R. Berkley Corporation, United Fire Group, Inc., Markel Corporation and Erie Indemnity Company Class A (TRV-US, FNHC-US, RLI-US, STFC-US, CINF-US, WRB-US, UFCS-US, MKL-US and ERIE-US).
Donegal Group, Inc. has shown overwhelming performance over the last one year at 2.48%. But over the last month performance has declined by -3.58%. In fact, Donegal Group, Inc.’s monthly share performance has also lagged its overall peer group (median share price performance was 1.43 last month).
- Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
- It trades at a lower Price/Book multiple (0.19) than its peer median (1.52).
- We classify DGICB-US as Challenged because of its below median returns and the market’s relatively low growth expectations.
- DGICB-US has relatively low net profit margins while its capital efficiency is relatively high.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- DGICB-US‘s return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- Relative to peers, the company’s underwriting and pre-tax margins suggest better discipline in writing policies than on controlling operating costs.
- While DGICB-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
- The company’s relatively low level of equity capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
- Our analysis rates Donegal Group, Inc. as UNDERVALUED relative to its peers.
Share Price Performance
Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
DGICB-US‘s share price performance of 2.48% for the last 12 months is below its peer median. The 30-day trend in its share price performance of -3.58% is also below the peer median implying that the company’s stock performance is lagging its peers.
Quadrant label definitions. Hover to know more
Donegal Group, Inc.’s price of USD 15.48 is lower than CapitalCube’s implied price of USD 27.34. CapitalCube believes that at these levels, Donegal Group, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 13.55 and USD 22.88.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Donegal Group, Inc. is a insurance holding company, which engages in the provision of insurance and reinsurance services. It operates through the following segments: Investment Function; Personal Lines of Insurance; Commercial Lines of Insurance; and Investment in Donegal Financial Services Corporation (DFSC). The Investment Function segment cover investment activities. The Personal Lines of Insurance segment offers private vehicle and homeowners insurance. The Commercial Lines of Insurance segment provides assurance services on commercial vehicles, multi-peril, and workers’ compensation. The investment in DFSC segment comprises of investments made to DFSC. The company was founded on August 26, 1986 and is headquartered in Marietta, PA.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.