Donegal GroupDGICA 60 ROE % is 7.14% as of Mar. 2026, which is 18% above its 10-year median of 6.05. GuruFocus rates DGICA with a GF Score™ of 60/100 and a GF Value™ of $14.11 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 502 Insurance companies, Donegal Group ranks worse than 55.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Donegal Group's annualized net income for the quarter that ended in Mar. 2026 was $46.0 Mil. Donegal Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $644.8 Mil. Therefore, Donegal Group's annualized ROE % for the quarter that ended in Mar. 2026 was 7.14%.
The historical rank and industry rank for Donegal Group's ROE % or its related term are showing as below:
DGICA'
s ROE % Range Over the Past 10 Years
Min: -7.73 Med: 6.05 Max: 13.38
Current: 10.56
During the past 13 years, Donegal Group's highest ROE % was 13.38%. The lowest was -7.73%. And the median was 6.05%.
DGICA's ROE % is ranked worse than 55.18% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs DGICA: 10.56
Donegal Group (NAS:DGICA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Donegal Group ROE % Related Terms
Donegal Group ROE % Historical Data
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The historical data trend for Donegal Group's ROE % 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.
For the Insurance - Property & Casualty subindustry, Donegal Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Donegal Group's ROE % distribution charts can be found below:
* The bar in red indicates where Donegal Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Donegal Group (DGICA) has a ROE % of 7.14% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Donegal Group and its competitors. This is 18% above median its historical median of 6.05. According to the industry distribution chart, Donegal Group ranks #277 out of 502 companies in the Insurance industry, placing it in the top 55.2%.
Is Donegal Group's ROE % too high?
Donegal Group's current ROE % of 7.14% is 18% above median its 10-year median of 6.05. The Insurance industry median ROE % is 11.73. Donegal Group's value of 7.14% is 39.1% below this industry median. Based on the distribution chart, Donegal Group ranks #277 out of 502 companies in the Insurance industry, which is below the industry midpoint. Overall, Donegal Group has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Donegal Group's ROE % compare to HRTG and HIPO?
According to the Insurance industry distribution chart, Donegal Group ranks #277 out of 502 companies for ROE %. This places Donegal Group in the lower half of its industry. The industry median ROE % is 11.73. Donegal Group's value of 7.14% is 39.1% below this benchmark. While the company's 10-year median is 6.05 vs. the industry median of 11.73, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donegal Group's current ROE % of 7.14% is 39.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Donegal Group and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donegal Group's current ROE % is 7.14%, which is 18% above median its own 10-year median of 6.05. 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 Modestly Overvalued. The stock's GF Value™ is $14.11, compared to a current price of $18.27 — trading 29.5% above its estimated fair value. The current ROE % is 7.14%, which is 18% above median its 10-year median of 6.05 and 39.1% below the Insurance industry median of 11.73. Donegal Group's overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Donegal Group (DGICA), the current ROE % is 7.14% 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 $18.27 is trading 29.5% above its estimated GF Value™ of $14.11.
GuruFocus considers Donegal Group to be Modestly Overvalued.
Key valuation signals for DGICA:
ROE %: 7.14% (18% above median its 10-year median of 6.05)
GF Value™: $14.11 vs. price of $18.27 (29.5% above fair value)
Industry Position: 39.1% below the Insurance median (#277 of 502)
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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