Donegal Group Inc. Class A Common Stock (DGICA)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for insurance companies that underwrite conservatively and sell near book value. Donegal is a small regional property-and-casualty writer, mostly commercial and personal lines. In fiscal 2025, the year ended 2025-12-31, revenue was $978.0M and net income was $79.3M, up from $50.9M in fiscal 2024 and just $4.4M in fiscal 2023. That recovery is real, and in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $241.1M and net income was $22.3M, better than the $16.9M earned in fiscal Q2 2025, though revenue slipped from $247.1M. FairStock's calculations at the 2026-10-13 close of $18.26 show P/E 9.51, P/B 1.02, ROE 11.18%, ROCE 2.28%, D/E 0.05, dividend yield 4.11%, Piotroski 5/9 and FairStock Score 56/100. The low debt is comforting, and an 11% return on equity is respectable, but this is a commodity insurer with limited pricing power and a thin moat. The given Lynch category is TURNAROUND, returned to profit after a loss within the last three years, which matches the jumpy record. The key missing item is the combined ratio; without it I cannot judge underwriting discipline, reserves or pricing. CET1 and NIM are bank measures and are not in the data. At about book value and under 10 times earnings, much bad news may be priced in, but I want evidence that underwriting quality is durable before calling it a true bargain.

In plain English: Donegal Group sells property and casualty insurance, mainly commercial and personal coverage for cars and businesses. The business looks only fair: profits have recovered from a weak patch and the company does not carry much debt, but revenue has been slipping lately. At the recent price, it looks modestly cheap compared with its profits and net assets, though not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer