Donegal Group Inc. (DGICA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+522.5%

$116.72

vs $18.75 price

Levered DCF

$55.30

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.43

Distress zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9×	10.05×	99.93×	-231.65×	17.43×	7.82×	8.82×	-11.77×
P/B	0.96×	0.94×	0.96×	0.94×	0.83×	0.8×	0.94×	0.97×
P/S	0.63×	0.52×	0.5×	0.54×	0.54×	0.53×	0.52×	0.5×
EV / EBITDA	6.1×	7.33×	47.31×	254.43×	11.32×	5.6×	6.45×	-10.13×
Gross margin	26.7%	22.8%	17.7%	16.7%	20.5%	25.6%	22.6%	9.3%
Operating margin	10.0%	6.3%	0.5%	-0.4%	3.7%	8.1%	7.0%	-6.3%
Net margin	8.1%	5.1%	0.5%	-0.2%	3.1%	6.8%	5.8%	-4.3%
Current ratio	0.74×	0.84×	0.82×	0.81×	0.85×	0×	0.03×	17.19×
Debt / equity	0.05×	0.06×	0.07×	0.07×	0.07×	0.17×	0.09×	0.16×
Interest coverage	72.26×	65.9×	8.17×	-5.86×	33.87×	52.89×	36.14×	-20.95×
Dividend yield	4.2%	4.4%	4.7%	4.5%	4.3%	4.1%	3.8%	4.1%
Payout ratio	32.4%	44.6%	494.7%	-1046.4%	75.6%	32.1%	34.1%	-47.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.4%	9.3%	0.9%	-0.4%	4.8%	10.2%	10.5%	-8.2%
Return on invested capital	11.6%	8.6%	0.8%	-0.4%	4.3%	62.1%	-0.1%	-1.6%
Return on assets	3.3%	2.2%	0.2%	-0.1%	1.1%	2.4%	2.5%	-1.8%
Free cash flow yield	11.4%	13.2%	6.2%	14.8%	17.3%	24.5%	18.0%	16.5%
Earnings yield	12.9%	10.0%	1.0%	-0.4%	5.7%	12.8%	11.1%	-8.5%
Enterprise value	$622.5M	$492.5M	$473.5M	$464.1M	$419.8M	$398.9M	$414M	$398.5M
Net debt / EBITDA	0.08×	-0.27×	1.12×	5.41×	-0.61×	-0.18×	-0.15×	-0.32×
Cash conversion cycle (days)	221	227	249	277	292	271	84	102