Donegal GroupDGICA +3.66%60 Interest Coverage is 43.41 as of Mar. 2026, which is 21% above its 10-year median of 36.01. GuruFocus rates DGICA with a GF Score™ of 60/100 and a GF Value™ of $14.10 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 351 Insurance companies, Donegal Group ranks better than 74.07% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Donegal Group's
EBIT
for the
three
months ended in Mar. 2026 was $14.5 Mil. Donegal Group's Interest Expense for the
three
months ended in Mar. 2026 was $-0.3 Mil.
Donegal Group's interest coverage for the quarter that ended in Mar. 2026 was 43.41.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Donegal Group's Interest Coverage or its related term are showing as below:
DGICA'
s Interest Coverage Range Over the Past 10 Years
Min: 8.61 Med: 36.01 Max: 73.24
Current: 60.67
DGICA's Interest Coverage is ranked better than 74.07% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs DGICA: 60.67
Donegal Group (NAS:DGICA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Donegal Group Interest Coverage Related Terms
Donegal Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Donegal Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DGICA vs HRTG, HIPO, ACIC: Interest Coverage Comparison
For the Insurance - Property & Casualty subindustry, Donegal Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Donegal Group Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Donegal Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Donegal Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Donegal Group (DGICA) has a Interest Coverage of 43.41 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Donegal Group and its competitors. This is 21% above median its historical median of 36.01. Over the past decade, Donegal Group's Interest Coverage has ranged from 8.61 to 73.24. According to the industry distribution chart, Donegal Group ranks #91 out of 351 companies in the Insurance industry, placing it in the top 25.9%.
Is Donegal Group's Interest Coverage too high?
Donegal Group's current Interest Coverage of 43.41 is 21% above median its 10-year median of 36.01. Over the past 10 years, this metric has ranged from a low of 8.61 to a high of 73.24. The Insurance industry median Interest Coverage is 16.23. Donegal Group's value of 43.41 is 167.5% above this industry median. Based on the distribution chart, Donegal Group ranks #91 out of 351 companies in the Insurance industry, which is above the industry midpoint. Overall, Donegal Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Donegal Group's Interest Coverage compare to HRTG and HIPO?
According to the Insurance industry distribution chart, Donegal Group ranks #91 out of 351 companies for Interest Coverage. This puts Donegal Group in the upper half of its industry. The industry median Interest Coverage is 16.23. Donegal Group's value of 43.41 is 167.5% above this benchmark. Historically, Donegal Group's own Interest Coverage has ranged from 8.61 to 73.24 over the past decade. While the company's 10-year median is 36.01 vs. the industry median of 16.23, Donegal Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donegal Group's current Interest Coverage of 43.41 is 167.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Donegal Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donegal Group's current Interest Coverage is 43.41, which is 21% above median its own 10-year median of 36.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donegal Group stock overvalued right now?
Based on GuruFocus' analysis, Donegal Group (DGICA) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.10, compared to a current price of $18.68 — trading 32.5% above its estimated fair value. The current Interest Coverage is 43.41, which is 21% above median its 10-year median of 36.01 and 167.5% above the Insurance industry median of 16.23. Donegal Group's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Donegal Group (DGICA), the current Interest Coverage is 43.41 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Donegal Group (DGICA) Overvalued in 2026?
Based on GuruFocus' analysis, Donegal Group stock appears to be overvalued.
The current stock price of $18.68 is trading 32.5% above its estimated GF Value™ of $14.10.
GuruFocus considers Donegal Group to be Significantly Overvalued.
Key valuation signals for DGICA:
Interest Coverage: 43.41 (21% above median its 10-year median of 36.01)
GF Value™: $14.10 vs. price of $18.68 (32.5% above fair value)
Industry Position: 167.5% above the Insurance median (#91 of 351)
No single metric tells the full story. See the DGICA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Donegal Group Inc is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states. It includes three segments: Investments Function, Commercial Lines of Insurance, and Personal Lines of Insurance. The majority of revenue is from the commercial Lines segment. The commercial Lines segment consists mainly of commercial automobile, commercial multi-peril, and workers' compensation policies.
60GF Score
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