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DGICB Stock Analysis - DONEGAL GROUP INC AI Rating

DGICB Nasdaq Fire, Marine & Casualty Insurance DE CIK: 0000800457
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
BUY
72% Conf
Pending
Analysis scheduled

📊 DGICB Key Takeaways

Revenue: $978.0M
Net Margin: 8.1%
Free Cash Flow: $70.1M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $0.00
AI Rating: BUY with 72% confidence

Investment Thesis

Claude

Donegal Group demonstrates solid operational efficiency with a 10% operating margin and strong profitability growth, evidenced by 56% YoY net income increase despite flat revenue. The company maintains a fortress balance sheet with zero long-term debt and exceptional interest coverage of 72.3x, providing substantial financial flexibility for an insurance company. Significant insider activity (30 Form 4 filings in 90 days) and healthy free cash flow generation (7.2% FCF margin) suggest management confidence in fundamental strength.

DGICB Strengths

Claude
  • + Strong profitability growth: 56% YoY net income increase demonstrates operational leverage
  • + Fortress balance sheet: Zero long-term debt with Debt/Equity ratio of 0.00x and 72.3x interest coverage
  • + Healthy cash generation: Free cash flow of $70.1M with 7.2% FCF margin on $978M revenue
  • + Solid return metrics: 12.4% ROE and 3.3% ROA adequate for insurance sector
  • + Significant insider activity: 30 Form 4 filings in 90 days suggests management conviction

DGICB Risks

Claude
  • ! Flat/declining revenue: 1.2% YoY revenue decline indicates competitive or market pressure
  • ! Low cash reserves: Only $26.8M in cash equivalents relative to $2.4B asset base suggests tight working capital management
  • ! Net margin compression potential: 8.1% net margin leaves limited room for underwriting deterioration in property/casualty insurance
  • ! Data freshness concern: Latest data from 2025-12-31 (future date) may indicate data accuracy or reporting lag issues

Key Metrics to Watch

Claude
  • * Revenue growth trajectory: Monitor whether 1.2% decline reverses or continues
  • * Combined ratio trends: Critical underwriting metric for insurance profitability sustainability
  • * Cash flow quality: Track if free cash flow remains above $70M+ levels
  • * Claims experience and loss ratios: Direct driver of profitability in property/casualty segment

DGICB Financial Metrics

Revenue
$978.0M
Net Income
$79.3M
EPS (Diluted)
$0.00
Free Cash Flow
$70.1M
Total Assets
$2.4B
Cash Position
$26.8M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

DGICB Profitability Ratios

Gross Margin N/A
Operating Margin 10.0%
Net Margin 8.1%
ROE 12.4%
ROA 3.3%
FCF Margin 7.2%

DGICB vs Finance Sector

How DONEGAL GROUP INC compares to Finance sector averages

Net Margin
DGICB 8.1%
vs
Sector Avg 25.0%
DGICB Sector
ROE
DGICB 12.4%
vs
Sector Avg 12.0%
DGICB Sector
Current Ratio
DGICB 0.0x
vs
Sector Avg 1.2x
DGICB Sector
Debt/Equity
DGICB 0.0x
vs
Sector Avg 2.0x
DGICB Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DGICB Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
73.2%
Interest Coverage
72.26x
Long-term Debt
N/A

DGICB 5-Year Financial Trend

DGICB 5-year financial data: Year 2021: Revenue $816.5M, Net Income $47.2M, EPS N/A. Year 2022: Revenue $848.2M, Net Income $52.8M, EPS N/A. Year 2023: Revenue $927.3M, Net Income $25.3M, EPS N/A. Year 2024: Revenue $989.6M, Net Income -$2.0M, EPS N/A. Year 2025: Revenue $989.6M, Net Income $4.4M, EPS N/A.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: DONEGAL GROUP INC's revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion.

DGICB Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
7.2%
Free cash flow / Revenue

DGICB Quarterly Performance

Quarterly financial performance data for DONEGAL GROUP INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $204.3M $2.0M N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DGICB Capital Allocation

Operating Cash Flow
$70.2M
Cash generated from operations
Stock Buybacks
$28.1M
Shares repurchased (TTM)
Capital Expenditures
$133.5K
Investment in assets
Dividends Paid
$25.7M
Returned to shareholders

DGICB SEC Filings

Access official SEC EDGAR filings for DONEGAL GROUP INC (CIK: 0000800457)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 DEF 14A ny20062569x1_def14a.htm View →
Mar 6, 2026 10-K ef20060826_10k.htm View →
Mar 5, 2026 4 xslF345X05/wk-form4_1772723152.xml View →
Mar 5, 2026 4 xslF345X05/wk-form4_1772723030.xml View →
Feb 20, 2026 4 xslF345X05/wk-form4_1771605544.xml View →

Frequently Asked Questions about DGICB

What is the AI rating for DGICB?

DONEGAL GROUP INC (DGICB) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DGICB's key strengths?

Claude: Strong profitability growth: 56% YoY net income increase demonstrates operational leverage. Fortress balance sheet: Zero long-term debt with Debt/Equity ratio of 0.00x and 72.3x interest coverage.

What are the risks of investing in DGICB?

Claude: Flat/declining revenue: 1.2% YoY revenue decline indicates competitive or market pressure. Low cash reserves: Only $26.8M in cash equivalents relative to $2.4B asset base suggests tight working capital management.

What is DGICB's revenue and growth?

DONEGAL GROUP INC reported revenue of $978.0M.

Does DGICB pay dividends?

DONEGAL GROUP INC pays dividends, with $25.7M 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 rating reflects both perspectives for balanced insights.

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI