Donegal Group Inc. Class B Common Stock (DGICB)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

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

Donegal is a small regional property-and-casualty insurer. I like the simplicity: it collects premiums, invests float, and pays claims. In FY2025, revenue was $978.0M and net income $79.3M; in FY2024, revenue was $989.6M and net income $50.9M; and in FY2023, revenue was $927.3M and net income $4.4M. That three-year record shows a recovery from very thin profits, which fits the FairStock TURNAROUND label. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $241.1M and net income $22.3M, a 9.25% margin. That is better than fiscal Q2 2025, when revenue was $247.1M and net income $16.9M, though revenue slipped. Financial health looks conservative: the FairStock data show a debt-to-equity ratio of 0.05 and a Piotroski F-Score of 5/9. FairStock also calculates ROE of 11.18%, P/B of 1.02, and P/E of 9.55 at the 2026-10-13 close of $18.33, with a 3.33% dividend yield. That is not a bargain-bin price, but for a low-leverage insurer near book value it is not demanding. The moat, however, is thin. Donegal is small in a commodity industry; pricing, catastrophe losses, reserve development, and competition drive results. Revenue is flat-to-down, and the profit record is uneven. I cannot see the combined ratio, reserve trends, CET1 or NIM in these data; CET1 and NIM are bank measures, while combined ratio would be the key underwriting gauge. A 55/100 FairStock score and 5/9 Piotroski suggest average quality. At around book value, the downside may be limited if underwriting holds, but I would want consistent underwriting profit, not just one good quarter.

In plain English: Donegal Group sells property and casualty insurance, mostly commercial and personal auto and business coverage. It has made money recently after a weak patch, carries little debt, and pays a dividend. At $18.33, the stock looks roughly fairly priced to modestly cheap against its earnings and accounting value, but revenue is not growing and profit can be bumpy.

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