Stock fact sheet · data as of
Donegal Group Inc. (DGICA): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Property & Casualty · United States · High Yield Income
Is DGICA undervalued?
Donegal Group Inc. (DGICA) closed at 18.51 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 54.05, which puts the price 66% below it. 7 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: Lynch gives 10.72 while GLS Growth gives 138.37. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DGICA under High Yield Income: a dividend yield above 4%.
Nine valuation models for DGICA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 107.39 | +480% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 32.82 | +77% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 39.76 | +115% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.72 | -42% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 138.37 | +648% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 47.68 | +158% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 73.52 | +297% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.04 | -40% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 25.11 | +36% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -12.29 | -166% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - DGICA passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 11.7%, ROE 12.4%, ROA 3.3% - with debt at 0.05 times equity and a free-cash-flow yield of 8.5%.
The dividend yield is high at 4.05% (payout ratio 38%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Commercial Lines 59%, Personal Lines 42% (quarter Q1 FY2025).
Institutional ownership scores 5/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 11.7% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | 12.4% |
| Debt / equity | 0.05 | ROA | 3.3% |
| Free-cash-flow yield | 8.5% | Payout ratio | 38% |
| Institutions | 5 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 71: Good
DGICA scores 71 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (7/20). Stability (7/20) is the part holding the score back.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 15 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 92k shares a day on a market cap of $687M, with a beta of -0.03 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 66% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 3.7/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 7 / 20 | 92k shares/day, $687M cap, beta -0.03 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Donegal Group Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Property & Casualty
The 12 companies below are the closest to Donegal Group Inc. by market cap within the Insurance - Property & Casualty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DGICB Donegal Group Inc. | 19.15 | 54.91 | +65% | 39No options | $684M |
| ROOT Root, Inc. | 49.12 | 146.07 | +66% | 61Fair | $672M |
| MHLA Maiden Holdings, Ltd. 6.625 NT 2046 | 8.91 | 13.70 | +35% | 38No options | $772M |
| AII American Integrity Insurance Group, Inc. | 27.70 | 130.58 | +79% | 39No options | $543M |
| ACIC American Coastal Insurance Corporation | 10.95 | 36.45 | +70% | 74Good | $531M |
| HIPO Hippo Holdings Inc. | 35.26 | 130.72 | +73% | 68Good | $930M |
| HRTG Heritage Insurance Holdings, Inc. | 36.61 | 198.51 | +82% | 79Good | $1.1B |
| BOW Bowhead Specialty Holdings Inc. | 34.01 | 94.11 | +64% | 39No options | $1.1B |
| TRUP Trupanion, Inc. | 26.73 | 23.57 | -13% | 63Fair | $1.2B |
| ASIC Ategrity Specialty Holdings LLC | 26.87 | 67.08 | +60% | 39No options | $1.3B |
| UVE Universal Insurance Holdings, Inc. | 46.70 | 199.23 | +77% | 83Prime | $1.3B |
| OIG Orion180 Insurance Group, Inc. Class A | 9.15 | - | - | 22No options | $358M |
⚖ Compare DGICA with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about DGICA
Is DGICA undervalued right now?
By the GLS models, yes: at 18.51 the stock is 66% below the average fair value of 54.05 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DGICA and what does it mean?
DGICA scores 71 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DGICA?
54.05 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Donegal Group Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DGICA have listed options, and how liquid are they?
Yes. The nightly snapshot found 106 listed contracts with 15 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.