Latest news with #DonegalGroup
Yahoo
19-05-2025
- Business
- Yahoo
Donegal Group Inc. (NASDAQ:DGIC.A) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
Most readers would already be aware that Donegal Group's (NASDAQ:DGIC.A) stock increased significantly by 36% over the past three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Particularly, we will be paying attention to Donegal Group's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've discovered 1 warning sign about Donegal Group. View them for free. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Donegal Group is: 12% = US$70m ÷ US$585m (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.12 in profit. View our latest analysis for Donegal Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To start with, Donegal Group's ROE looks acceptable. Further, the company's ROE is similar to the industry average of 13%. As you might expect, the 17% net income decline reported by Donegal Group is a bit of a surprise. Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. These include low earnings retention or poor allocation of capital. However, when we compared Donegal Group's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 14% in the same period. This is quite worrisome. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Donegal Group is trading on a high P/E or a low P/E, relative to its industry. With a high three-year median payout ratio of 92% (implying that 8.0% of the profits are retained), most of Donegal Group's profits are being paid to shareholders, which explains the company's shrinking earnings. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Moreover, Donegal Group has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Overall, we have mixed feelings about Donegal Group. While the company does have a high rate of return, its low earnings retention is probably what's hampering its earnings growth. That being so, the latest industry analyst forecasts show that analysts are forecasting a slight improvement in the company's future earnings growth. The company's existing shareholders might have some respite after all. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
19-05-2025
- Business
- Yahoo
Donegal Group Inc. (NASDAQ:DGIC.A) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
Most readers would already be aware that Donegal Group's (NASDAQ:DGIC.A) stock increased significantly by 36% over the past three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Particularly, we will be paying attention to Donegal Group's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've discovered 1 warning sign about Donegal Group. View them for free. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Donegal Group is: 12% = US$70m ÷ US$585m (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.12 in profit. View our latest analysis for Donegal Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To start with, Donegal Group's ROE looks acceptable. Further, the company's ROE is similar to the industry average of 13%. As you might expect, the 17% net income decline reported by Donegal Group is a bit of a surprise. Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. These include low earnings retention or poor allocation of capital. However, when we compared Donegal Group's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 14% in the same period. This is quite worrisome. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Donegal Group is trading on a high P/E or a low P/E, relative to its industry. With a high three-year median payout ratio of 92% (implying that 8.0% of the profits are retained), most of Donegal Group's profits are being paid to shareholders, which explains the company's shrinking earnings. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Moreover, Donegal Group has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Overall, we have mixed feelings about Donegal Group. While the company does have a high rate of return, its low earnings retention is probably what's hampering its earnings growth. That being so, the latest industry analyst forecasts show that analysts are forecasting a slight improvement in the company's future earnings growth. The company's existing shareholders might have some respite after all. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of Donegal Insurance Group Members and Donegal Group Inc.
OLDWICK, N.J., May 13, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" (Excellent) of the members of Donegal Insurance Group (Donegal Group) (Marietta, PA). Concurrently, AM Best has affirmed the Long-Term ICR of "bbb" (Good) of Donegal Group Inc. (Delaware). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the member companies.) The ratings reflect Donegal Group's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Donegal Group's balance sheet strength assessment reflects its risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), stabilized loss reserving trends, conservative investment portfolio, a comprehensive reinsurance program and sound liquidity position. These factors are offset partially by elevated underwriting leverage and modest stockholders' dividend obligation. Although the individual members within Donegal Group play a specific role in the organization's overall business plan, and their operating performances vary, each contributes favorably to the group's risk-adjusted capitalization. In addition, each member supports the corporate business strategy and benefits from shared senior management, intercompany reinsurance and the added financial flexibility of Donegal Group Inc. to raise capital through debt or equity offerings during favorable investment markets. While Donegal Group's operating performance has been influenced unfavorably by volatile net underwriting results in recent years due to severe weather-related losses, and inflationary pressure, the group has posted consistently positive pre-tax operating results. The group's net underwriting results showed improvement in 2024, largely driven by a series of profitability initiatives instituted by management in recent years to improve underwriting performance, including significant rate actions, the transfer of unprofitable accounts and investing in new technology. This favorable trend is expected to continue going forward in support of the adequate operating performance assessment. Donegal Group's neutral business profile assessment reflects its geographic and product line diversification, effective use of technology in the independent agency distribution channel, and a history of successful expansion through strategic acquisitions and affiliations. Donegal Group's appropriate ERM is demonstrated through a formal risk management process, which provides assurances that the organization's key compliance, financial and operational risks are addressed in meeting organizational objectives. Additionally, Donegal Group purchases various excess of loss and per risk reinsurance treaties from high quality reinsurers to protect surplus, reduce volatility and increase capacity. The FSR of A (Excellent) and the Long Term ICRs of "a" (Excellent) have been affirmed, with stable outlooks for the following members of Donegal Insurance Group: Atlantic States Insurance Company Donegal Mutual Insurance Company Michigan Insurance Company Mountain States Commercial Insurance Company Mountain States Indemnity Company Peninsula Indemnity Company Southern Insurance Company of Virginia Southern Mutual Insurance Company The Peninsula Insurance Company This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Adib Nassery Senior Financial Analyst +1 908 882 2198 Richard Attanasio Senior Director +1 908 882 1638 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
13-05-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Donegal Insurance Group Members and Donegal Group Inc.
BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a' (Excellent) of the members of Donegal Insurance Group (Donegal Group) (Marietta, PA). Concurrently, AM Best has affirmed the Long-Term ICR of 'bbb' (Good) of Donegal Group Inc. (Delaware). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the member companies.) The ratings reflect Donegal Group's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Donegal Group's balance sheet strength assessment reflects its risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), stabilized loss reserving trends, conservative investment portfolio, a comprehensive reinsurance program and sound liquidity position. These factors are offset partially by elevated underwriting leverage and modest stockholders' dividend obligation. Although the individual members within Donegal Group play a specific role in the organization's overall business plan, and their operating performances vary, each contributes favorably to the group's risk-adjusted capitalization. In addition, each member supports the corporate business strategy and benefits from shared senior management, intercompany reinsurance and the added financial flexibility of Donegal Group Inc. to raise capital through debt or equity offerings during favorable investment markets. While Donegal Group's operating performance has been influenced unfavorably by volatile net underwriting results in recent years due to severe weather-related losses, and inflationary pressure, the group has posted consistently positive pre-tax operating results. The group's net underwriting results showed improvement in 2024, largely driven by a series of profitability initiatives instituted by management in recent years to improve underwriting performance, including significant rate actions, the transfer of unprofitable accounts and investing in new technology. This favorable trend is expected to continue going forward in support of the adequate operating performance assessment. Donegal Group's neutral business profile assessment reflects its geographic and product line diversification, effective use of technology in the independent agency distribution channel, and a history of successful expansion through strategic acquisitions and affiliations. Donegal Group's appropriate ERM is demonstrated through a formal risk management process, which provides assurances that the organization's key compliance, financial and operational risks are addressed in meeting organizational objectives. Additionally, Donegal Group purchases various excess of loss and per risk reinsurance treaties from high quality reinsurers to protect surplus, reduce volatility and increase capacity. The FSR of A (Excellent) and the Long Term ICRs of 'a' (Excellent) have been affirmed, with stable outlooks for the following members of Donegal Insurance Group: Atlantic States Insurance Company Donegal Mutual Insurance Company Michigan Insurance Company Mountain States Commercial Insurance Company Mountain States Indemnity Company Peninsula Indemnity Company Southern Insurance Company of Virginia Southern Mutual Insurance Company The Peninsula Insurance Company This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
27-02-2025
- Business
- Yahoo
Discovering US Undiscovered Gems In February 2025
Over the last 7 days, the United States market has experienced a 3.6% drop, yet it remains up by 17% over the past year with earnings expected to grow by 14% annually in the coming years. In this dynamic environment, identifying stocks that are not only resilient but also poised for growth can provide valuable opportunities for investors seeking to uncover lesser-known gems. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Eagle Financial Services 125.65% 12.07% 2.64% ★★★★★★ Wilson Bank Holding NA 7.87% 8.22% ★★★★★★ Omega Flex NA 0.39% 2.57% ★★★★★★ Cashmere Valley Bank 15.51% 5.80% 3.51% ★★★★★★ ASA Gold and Precious Metals NA 7.47% -26.86% ★★★★★★ Teekay NA -0.89% 62.53% ★★★★★★ Anbio Biotechnology NA 8.43% 184.88% ★★★★★★ FRMO 0.08% 38.78% 45.85% ★★★★★☆ Pure Cycle 5.15% -2.61% -6.23% ★★★★★☆ Reitar Logtech Holdings 31.39% 231.46% 41.38% ★★★★☆☆ Click here to see the full list of 286 stocks from our US Undiscovered Gems With Strong Fundamentals screener. Here's a peek at a few of the choices from the screener. Simply Wall St Value Rating: ★★★★★☆ Overview: Tiptree Inc., with a market cap of $803 million, operates through its subsidiaries to provide specialty insurance products and related services primarily in the United States. Operations: Tiptree generates revenue primarily from its insurance segment, which accounts for $1.92 billion. The company also has a smaller revenue stream from its mortgage operations, contributing $57.18 million. Tiptree, a smaller player in the insurance space, has shown impressive financial strides. Over five years, its debt to equity ratio improved from 80.9% to 66%, showcasing better financial management. The company's earnings surged by an eye-catching 411.5% last year, outpacing the industry growth of 32.7%. In recent results, Tiptree reported fourth-quarter revenue of US$503.6 million and net income of US$19.55 million, both up significantly from the previous year. With interest payments well covered by EBIT at a multiple of 5.5x and satisfactory net debt to equity at 5.1%, Tiptree's financial health appears robust. Take a closer look at Tiptree's potential here in our health report. Explore historical data to track Tiptree's performance over time in our Past section. Simply Wall St Value Rating: ★★★★★☆ Overview: Donegal Group Inc. is an insurance holding company that offers property and casualty insurance to businesses and individuals, with a market cap of $554.31 million. Operations: Donegal Group generates revenue primarily through its Personal Lines and Commercial Lines insurance segments, with $396.97 million and $539.68 million in revenue, respectively. Donegal Group, an insurance player, is making waves with its strategic expansion into small business underwriting and the use of modern tools for better risk assessment. The company's earnings surged by 1049% last year, outpacing the industry growth of 32.7%, and its debt-to-equity ratio improved from 8.9 to 6.4 over five years. With a price-to-earnings ratio of 11x, below the US market average, Donegal appears undervalued. Recent financial results show revenue climbing to US$989 million for the full year with net income reaching US$51 million from just US$4 million previously, indicating robust profitability improvements. Donegal Group is enhancing growth through small business underwriting and advanced risk tools. Click here to explore the full narrative on Donegal Group's strategic initiatives. Simply Wall St Value Rating: ★★★★★★ Overview: Donnelley Financial Solutions, Inc. offers innovative software and technology-enabled financial regulatory and compliance solutions across various regions including the United States, Asia, Europe, and Canada, with a market capitalization of approximately $1.43 billion. Operations: DFIN generates revenue through two primary segments: Software Solutions and Compliance and Communications Management, with Capital Markets contributing $213.6 million and $321.7 million respectively, while Investment Companies add $116.1 million and $130.5 million respectively. The company's focus on these segments highlights its diversified approach to financial solutions across different market needs. Donnelley Financial Solutions, a nimble player in the financial services sector, has been strategically shifting towards software offerings to enhance revenue stability. The company's earnings have grown at an impressive 21.9% annually over the past five years, with its net debt to equity ratio improving from 110.2% to a satisfactory 28.6%. Trading at US$66.83, it is considered undervalued by about 23.7% against its fair value estimate of US$76.67. Despite recent insider selling and challenges in print demand and capital markets, Donnelley's focus on SaaS solutions like Venue aims to bolster future profitability and operational efficiency. Donnelley Financial Solutions' shift to SaaS is enhancing revenue stability and growth. Click here to explore the full narrative on Donnelley Financial Solutions. Click this link to deep-dive into the 286 companies within our US Undiscovered Gems With Strong Fundamentals screener. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqCM:TIPT NasdaqGS:DGIC.A and NYSE:DFIN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
