Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Donegal Group Inc. (DGICA)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$32.33 - $55.24$42.26
Multi-Stage$33.18 - $36.28$34.70
Blended Fair Value$38.48
Current Price$19.39
Upside98.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.12%5.28%0.670.640.600.560.500.470.460.430.410.42
YoY Growth--3.69%6.78%7.35%12.51%5.49%2.77%5.65%5.23%-2.55%6.48%
Dividend Yield--3.39%4.62%3.93%4.17%3.35%3.10%3.45%2.75%2.34%2.95%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)86.15
(-) Cash Dividends Paid (M)24.86
(=) Cash Retained (M)61.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.2310.776.46
Cash Retained (M)61.3061.3061.30
(-) Cash Required (M)-17.23-10.77-6.46
(=) Excess Retained (M)44.0650.5354.83
(/) Shares Outstanding (M)34.1334.1334.13
(=) Excess Retained per Share1.291.481.61
LTM Dividend per Share0.730.730.73
(+) Excess Retained per Share1.291.481.61
(=) Adjusted Dividend2.022.212.34
WACC / Discount Rate9.73%9.73%9.73%
Growth Rate3.28%4.28%5.28%
Fair Value$32.33$42.26$55.24
Upside / Downside66.76%117.94%184.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)86.1589.8493.6897.68101.86106.22109.40
Payout Ratio28.85%41.08%53.31%65.54%77.77%90.00%92.50%
Projected Dividends (M)24.8636.9149.9464.0279.2295.59101.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.73%9.73%9.73%
Growth Rate3.28%4.28%5.28%
Year 1 PV (M)33.3133.6433.96
Year 2 PV (M)40.6941.4842.28
Year 3 PV (M)47.0848.4649.87
Year 4 PV (M)52.5854.6556.78
Year 5 PV (M)57.2760.1063.04
PV of Terminal Value (M)901.44945.94992.17
Equity Value (M)1,132.381,184.271,238.09
Shares Outstanding (M)34.1334.1334.13
Fair Value$33.18$34.70$36.28
Upside / Downside71.12%78.96%87.10%

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