Donegal GroupDGICA -1.14%64 Return-on-Tangible-Equity is 7.21% as of Mar. 2026, which is 17% above its 10-year median of 6.14. GuruFocus rates DGICA with a GF Score™ of 64/100 and a GF Value™ of $14.09 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 499 Insurance companies, Donegal Group ranks worse than 60.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Donegal Group's annualized net income for the quarter that ended in Mar. 2026 was $46.0 Mil. Donegal Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $638.2 Mil. Therefore, Donegal Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.21%.
The historical rank and industry rank for Donegal Group's Return-on-Tangible-Equity or its related term are showing as below:
DGICA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.85 Med: 6.14 Max: 13.53
Current: 10.68
During the past 13 years, Donegal Group's highest Return-on-Tangible-Equity was 13.53%. The lowest was -7.85%. And the median was 6.14%.
DGICA's Return-on-Tangible-Equity is ranked worse than 60.12% of 499
companies
in the Insurance industry
Industry Median: 13.52
vs DGICA: 10.68
Donegal Group (NAS:DGICA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Donegal Group Return-on-Tangible-Equity Related Terms
Donegal Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Donegal Group's Return-on-Tangible-Equity 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.
DGICA vs HIPO, HRTG, ROOT: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Donegal Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Donegal Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Donegal Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.21% mean?
Donegal Group (DGICA) has a Return-on-Tangible-Equity of 7.21% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Donegal Group and its competitors. This is 17% above median its historical median of 6.14. According to the industry distribution chart, Donegal Group ranks #300 out of 499 companies in the Insurance industry, placing it in the top 60.1%.
Is Donegal Group's Return-on-Tangible-Equity too high?
Donegal Group's current Return-on-Tangible-Equity of 7.21% is 17% above median its 10-year median of 6.14. The Insurance industry median Return-on-Tangible-Equity is 13.52. Donegal Group's value of 7.21% is 46.7% below this industry median. Based on the distribution chart, Donegal Group ranks #300 out of 499 companies in the Insurance industry, which is below the industry midpoint. Overall, Donegal Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Donegal Group's Return-on-Tangible-Equity compare to HIPO and HRTG?
According to the Insurance industry distribution chart, Donegal Group ranks #300 out of 499 companies for Return-on-Tangible-Equity. This places Donegal Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.52. Donegal Group's value of 7.21% is 46.7% below this benchmark. While the company's 10-year median is 6.14 vs. the industry median of 13.52, Donegal Group has consistently been below 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donegal Group's current Return-on-Tangible-Equity of 7.21% is 46.7% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Donegal Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donegal Group's current Return-on-Tangible-Equity is 7.21%, which is 17% above median its own 10-year median of 6.14. 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 $14.09, compared to a current price of $19.07 — trading 35.3% above its estimated fair value. The current Return-on-Tangible-Equity is 7.21%, which is 17% above median its 10-year median of 6.14 and 46.7% below the Insurance industry median of 13.52. Donegal Group's overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Donegal Group (DGICA), the current Return-on-Tangible-Equity is 7.21% 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 $19.07 is trading 35.3% above its estimated GF Value™ of $14.09.
GuruFocus considers Donegal Group to be Significantly Overvalued.
Key valuation signals for DGICA:
Return-on-Tangible-Equity: 7.21% (17% above median its 10-year median of 6.14)
GF Value™: $14.09 vs. price of $19.07 (35.3% above fair value)
Industry Position: 46.7% below the Insurance median (#300 of 499)
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.
64GF Score
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