Donegal Group Profit Margin vs. Price To Earning

DGICB Stock  USD 14.60  0.80  5.19%   
Considering Donegal Group's profitability and operating efficiency indicators, Donegal Group's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Donegal Group's ability to earn profits and add value for shareholders.

Donegal Group Net Profit Margin

0.005011

As of December 10, 2024, Price To Sales Ratio is expected to decline to 0.47. In addition to that, Days Sales Outstanding is expected to decline to 150.54. At present, Donegal Group's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 5.3 M, whereas Accumulated Other Comprehensive Income is projected to grow to (31.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
For Donegal Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Donegal Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Donegal Group B utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Donegal Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Donegal Group B over time as well as its relative position and ranking within its peers.
  
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Is Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Donegal Group. If investors know Donegal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Donegal Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.057
Dividend Share
0.685
Earnings Share
0.75
Revenue Per Share
29.304
Quarterly Revenue Growth
0.076
The market value of Donegal Group B is measured differently than its book value, which is the value of Donegal that is recorded on the company's balance sheet. Investors also form their own opinion of Donegal Group's value that differs from its market value or its book value, called intrinsic value, which is Donegal Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Donegal Group's market value can be influenced by many factors that don't directly affect Donegal Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Donegal Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Donegal Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Donegal Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Donegal Group B Price To Earning vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Donegal Group's current stock value. Our valuation model uses many indicators to compare Donegal Group value to that of its competitors to determine the firm's financial worth.
Donegal Group B is rated below average in profit margin category among its peers. It also is rated below average in price to earning category among its peers reporting about  291.73  of Price To Earning per Profit Margin. At present, Donegal Group's Net Profit Margin is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Donegal Group's earnings, one of the primary drivers of an investment's value.

Donegal Price To Earning vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Donegal Group

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.03 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Donegal Group

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
7.41 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Donegal Price To Earning Comparison

Donegal Group is currently under evaluation in price to earning category among its peers.

Donegal Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Donegal Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Donegal Group will eventually generate negative long term returns. The profitability progress is the general direction of Donegal Group's change in net profit over the period of time. It can combine multiple indicators of Donegal Group, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-32.9 M-31.2 M
Operating Income620.2 M651.2 M
Net Income4.4 M4.2 M
Income Tax Expense638 K606.1 K
Income Before Tax5.1 M4.8 M
Total Other Income Expense Net5.1 M5.3 M
Net Income From Continuing Ops9.9 M14.6 M
Net Loss-1.8 M-1.7 M
Interest Income1.5 M1.6 M
Net Interest Income-620.3 K-651.3 K
Change To Netincome79.4 M83.4 M
Net Income Per Share 0.13  0.13 
Income Quality 6.47  6.79 
Net Income Per E B T 0.87  0.58 

Donegal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Donegal Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Donegal Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Donegal Group's important profitability drivers and their relationship over time.

Use Donegal Group in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Donegal Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Donegal Group will appreciate offsetting losses from the drop in the long position's value.

Donegal Group Pair Trading

Donegal Group B Pair Trading Analysis

The ability to find closely correlated positions to Donegal Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Donegal Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Donegal Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Donegal Group B to buy it.
The correlation of Donegal Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Donegal Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Donegal Group B moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Donegal Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Donegal Group position

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When determining whether Donegal Group B offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Donegal Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Donegal Group B Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Donegal Group B Stock:
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You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Donegal Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Donegal Group B at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Donegal Group's income statement, its balance sheet, and the statement of cash flows.
Potential Donegal Group investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Donegal Group investors may work on each financial statement separately, they are all related. The changes in Donegal Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Donegal Group's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.