Latest Ratios: P/E Ratio 8.4x · EV/EBITDA 6.8x · ROE 13.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $673M | $624M | $512M | $464M | $454M | $445M | $415M | $426M | $390M | $488M | $474M |
| Enterprise Value | $681M | $633M | $494M | $475M | $464M | $422M | $401M | $417M | $403M | $514M | $523M |
| P/E Ratio → | 8.38 | 9.17 | 10.11 | 99.93 | — | 17.64 | 7.69 | 9.04 | — | 69.20 | 15.33 |
| P/S Ratio | 0.69 | 0.64 | 0.52 | 0.50 | 0.54 | 0.54 | 0.53 | 0.53 | 0.51 | 0.66 | 0.69 |
| P/B Ratio | 0.89 | 0.97 | 0.94 | 0.97 | 0.94 | 0.84 | 0.80 | 0.95 | 0.98 | 1.09 | 1.08 |
| P/FCF | 9.59 | 8.89 | 7.59 | 16.22 | 6.77 | 5.79 | 4.10 | 5.60 | 6.13 | 6.11 | 7.94 |
| P/OCF | 9.59 | 8.89 | 7.59 | 16.20 | 6.77 | 5.79 | 4.10 | 5.58 | 6.12 | 6.03 | 7.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.65 | 0.50 | 0.51 | 0.55 | 0.52 | 0.52 | 0.51 | 0.52 | 0.70 | 0.76 |
| EV / EBITDA | 6.77 | 6.28 | 7.46 | 50.57 | 385.62 | 11.66 | 5.74 | 6.66 | — | 28.22 | 10.92 |
| EV / EBIT | 6.98 | 6.39 | 7.80 | 83.55 | — | 13.51 | 6.23 | 7.11 | — | 37.52 | 12.17 |
| EV / FCF | — | 9.01 | 7.32 | 16.61 | 6.92 | 5.50 | 3.97 | 5.47 | 6.33 | 6.44 | 8.77 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.7% | 26.7% | 22.8% | 17.7% | 16.7% | 20.5% | 25.6% | 22.6% | 9.3% | 18.3% | 22.7% |
| Operating Margin | 10.0% | 10.0% | 6.3% | 0.5% | -0.4% | 3.7% | 8.1% | 7.0% | -6.3% | 1.6% | 6.0% |
| Net Profit Margin | 8.1% | 8.1% | 5.1% | 0.5% | -0.2% | 3.1% | 6.8% | 5.8% | -4.3% | 1.0% | 4.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.4% | 13.4% | 9.9% | 0.9% | -0.4% | 4.8% | 10.9% | 11.1% | -7.7% | 1.6% | 7.3% |
| ROA | 3.4% | 3.4% | 2.2% | 0.2% | -0.1% | 1.1% | 2.6% | 2.5% | -1.8% | 0.4% | 1.9% |
| ROIC | 12.4% | 12.4% | 9.2% | 0.8% | -0.5% | 4.5% | 10.0% | 10.0% | -8.2% | 1.9% | 6.5% |
| ROCE | 16.2% | 16.2% | 12.0% | 1.0% | -0.7% | 6.0% | 3.1% | — | -2.7% | — | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.07 | 0.17 | 0.09 | 0.16 | 0.14 | 0.17 |
| Debt / EBITDA | 0.35 | 0.35 | 0.53 | 3.73 | 29.08 | 0.97 | 1.29 | 0.64 | — | 3.51 | 1.54 |
| Net Debt / Equity | — | 0.01 | -0.03 | 0.02 | 0.02 | -0.04 | -0.03 | -0.02 | 0.03 | 0.06 | 0.11 |
| Net Debt / EBITDA | 0.08 | 0.08 | -0.27 | 1.19 | 8.21 | -0.63 | -0.19 | -0.15 | — | 1.44 | 1.03 |
| Debt / FCF | — | 0.12 | -0.27 | 0.39 | 0.15 | -0.30 | -0.13 | -0.12 | 0.19 | 0.33 | 0.83 |
| Interest Coverage | 73.26 | 73.26 | 66.90 | 9.17 | -4.86 | 34.87 | 53.89 | 37.14 | -19.95 | 8.60 | 25.93 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.74 | 0.74 | 0.84 | 0.82 | 0.81 | 0.85 | — | 0.03 | 17.19 | 1.26 | 1.02 |
| Quick Ratio | 0.74 | 0.74 | 0.84 | 0.82 | 0.81 | 0.85 | — | 0.04 | 21.38 | 0.02 | 0.02 |
| Cash Ratio | 0.30 | 0.30 | 0.39 | 0.36 | 0.35 | 0.36 | — | 0.02 | 9.18 | 0.01 | 0.01 |
| Asset Turnover | — | 0.41 | 0.42 | 0.41 | 0.38 | 0.36 | 0.36 | 0.42 | 0.42 | 0.42 | 0.42 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.5% | 4.1% | 4.4% | 4.7% | 4.5% | 4.3% | 4.1% | 3.8% | 4.0% | 3.0% | 3.0% |
| Payout Ratio | 32.4% | 32.4% | 44.6% | 494.7% | — | 75.6% | 32.1% | 34.1% | — | 208.3% | 45.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.9% | 10.9% | 9.9% | 1.0% | — | 5.7% | 13.0% | 11.1% | — | 1.4% | 6.5% |
| FCF Yield | 10.4% | 11.2% | 13.2% | 6.2% | 14.8% | 17.3% | 24.4% | 17.9% | 16.3% | 16.4% | 12.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.5% | 4.1% | 4.4% | 4.7% | 4.5% | 4.3% | 4.1% | 3.8% | 4.0% | 3.0% | 3.0% |
| Shares Outstanding | — | $31M | $33M | $33M | $32M | $31M | $29M | $29M | $29M | $28M | $27M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DGICA stock.
Donegal Group Inc.'s current P/E ratio is 8.4x. The historical average is 22.6x. This places it at the 9th percentile of its historical range.
Donegal Group Inc.'s current EV/EBITDA is 6.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.2x.
Donegal Group Inc.'s return on equity (ROE) is 13.4%. The historical average is 7.1%.
Based on historical data, Donegal Group Inc. is trading at a P/E of 8.4x. This is at the 9th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Donegal Group Inc.'s current dividend yield is 4.50% with a payout ratio of 32.4%.
Donegal Group Inc. has 26.7% gross margin and 10.0% operating margin.
Donegal Group Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Persistent underwriting margin pressure
Metrics are mathematically derived from official filings.
Combined Ratio Shows Cyclical Improvement
DGICA's combined ratio improved to 88.6% in Q2 2026 from 98.0% in Q2 2024, indicating stronger underwriting profitability, as reported in quarterly financial data.
The combined ratio has been below 100% for eight consecutive quarters, with the latest quarter at 88.6%, suggesting sustained underwriting discipline. The loss ratio of 70.0% in Q2 2026 is down from 83.5% in Q2 2024, reflecting improved claims experience, though the expense ratio spiked to 33.8% in Q1 2026 before normalizing to 18.6% in Q2, which may indicate quarterly volatility in expense recognition. This improvement appears driven by favorable reserve development and disciplined pricing, but investors should monitor whether the loss ratio can hold below 75% given inflationary pressures on auto and property claims.
ROE Recovery Anchored by Underwriting Gains
ROE improved to 3.4% in Q2 2026 from 0.9% in Q2 2024, driven by a combined ratio of 88.6%, as per reported quarterly data.
The quarterly ROE of 3.4% annualizes to roughly 13.6%, which is above the peer average but still below the double-digit returns of top-tier carriers like ERIE. The improvement is primarily attributable to underwriting profitability, as the combined ratio of 88.6% implies an underwriting margin of 11.4%, while investment income likely contributes modestly given the conservative fixed-income portfolio. However, the Q2 2026 ROE of 3.4% is down from 4.5% in Q1 2025, suggesting that the earnings beat may be partially driven by non-operating items, and the sustainability of this ROE level warrants close monitoring.
Conservative Leverage Supports Solvency
DGICA's debt-to-equity ratio of 0.05% and interest coverage of 82.81x indicate a fortress balance sheet, as reported in Q2 2026 financials.
The exceptionally low leverage provides significant financial flexibility and supports the company's A.M. Best rating, which is critical for maintaining agency relationships. The interest coverage of 82.81x is extremely high, reflecting minimal debt obligations, and the book value per share grew to $17.98 from $17.54 sequentially, indicating capital accumulation. This conservative capital structure may limit ROE expansion, but it positions DGICA to weather underwriting cycles without external capital raises, which is a key strength for a small-cap insurer.
Valuation Discount Reflects Structural Complexity
DGICA trades at a P/B of 0.91 versus peers like ERIE at 6.05 and KMPR at 0.64, based on current market data.
The discount to book value appears justified by the dual-class share structure and the influence of Donegal Mutual, which may limit minority shareholder influence. Compared to regional peers, DGICA's P/B is below the group average, but its ROE of 3.4% (quarterly) is lower than ERIE's 24.5%, suggesting the market is pricing in lower profitability expectations. The P/E of 8.56 is attractive relative to KMPR's 11.90, but the lack of a PEG ratio for some peers complicates growth comparisons. Investors should consider whether the discount is warranted given the company's conservative leverage and improving combined ratio, or if it reflects a permanent structural discount.
Combined Ratio May Overstate Underlying Strength
The combined ratio of 88.6% in Q2 2026 may be flattered by favorable reserve development, as suggested by the CEO's cautious commentary.
The combined ratio is the most commonly misapplied metric for insurers, as it can be distorted by prior-year reserve releases. DGICA's loss reserves declined from $206.0M in Q2 2024 to $168.7M in Q2 2026, a reduction that may indicate favorable development boosting current earnings. If reserve releases are masking underlying deterioration, the true combined ratio could be higher than reported. Investors should adjust for reserve development by analyzing the calendar-year combined ratio versus the accident-year ratio, and monitor the loss ratio trend excluding reserve releases to assess the sustainability of underwriting profitability.