MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
93.51 USD
+2.36 (+2.59%)
93.51 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MCY. MCY was compared to 147 industry peers in the Insurance industry. MCY has only an average score on both its financial health and profitability. MCY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MCY was profitable.
In the past year MCY had a positive cash flow from operations.
MCY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MCY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.69%, MCY is doing good in the industry, outperforming 79.59% of the companies in the same industry.
MCY has a Return On Equity of 19.69%. This is amongst the best in the industry. MCY outperforms 87.07% of its industry peers.
With an excellent Return On Invested Capital value of 5.71%, MCY belongs to the best of the industry, outperforming 82.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 19.69% | ||
| ROIC | 5.71% |
ROA(3y)-0.29%
ROA(5y)1.74%
ROE(3y)-1.14%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MCY has a Profit Margin of 7.55%. This is comparable to the rest of the industry: MCY outperforms 45.58% of its industry peers.
MCY's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 9.74%, MCY is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MCY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.74% | ||
| PM (TTM) | 7.55% | ||
| GM | N/A |
OM growth 3Y11.77%
OM growth 5Y2.15%
PM growth 3Y11.24%
PM growth 5Y1.18%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MCY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MCY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MCY has about the same amount of shares outstanding.
MCY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that MCY is in the distress zone and has some risk of bankruptcy.
MCY has a Altman-Z score of 1.51. This is amongst the best in the industry. MCY outperforms 83.67% of its industry peers.
MCY has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.58, MCY is doing good in the industry, outperforming 78.23% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that MCY is not too dependend on debt financing.
MCY has a Debt to Equity ratio of 0.26. This is in the better half of the industry: MCY outperforms 62.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.68
WACC8.37%
2.3 Liquidity
MCY has a Current Ratio of 0.12. This is a bad value and indicates that MCY is not financially healthy enough and could expect problems in meeting its short term obligations.
MCY has a better Current ratio (0.12) than 63.27% of its industry peers.
MCY has a Quick Ratio of 0.12. This is a bad value and indicates that MCY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.12, MCY is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.26% over the past year.
MCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.56% yearly.
MCY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.18%.
The Revenue has been growing slightly by 6.63% on average over the past years.
EPS 1Y (TTM)26.26%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%51.97%
Revenue 1Y (TTM)6.18%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%3.56%
3.2 Future
MCY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.87% yearly.
MCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y-4.48%
EPS Next 2Y8.63%
EPS Next 3Y2.87%
EPS Next 5YN/A
Revenue Next Year8.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.18%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.32, which indicates a correct valuation of MCY.
Compared to the rest of the industry, the Price/Earnings ratio of MCY is on the same level as its industry peers.
MCY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 11.02, which indicates a very decent valuation of MCY.
The rest of the industry has a similar Price/Forward Earnings ratio as MCY.
The average S&P500 Price/Forward Earnings ratio is at 23.78. MCY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 65.99% of the companies listed in the same industry.
MCY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCY is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y8.63%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, MCY has a reasonable but not impressive dividend return.
MCY's Dividend Yield is comparable with the industry average which is at 3.42.
MCY's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of MCY decreases each year by -12.76%.
MCY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MCY decreased recently.
Dividend Growth(5Y)-12.76%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MCY pays out 16.00% of its income as dividend. This is a sustainable payout ratio.
DP16%
EPS Next 2Y8.63%
EPS Next 3Y2.87%
93.51
+2.36 (+2.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.18%
Inst Owner Change-0.34%
Ins Owners35.51%
Ins Owner Change0%
Market Cap5.18B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (9.08%)
Short Float %7.33%
Short Ratio8.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP16%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.99%
Min EPS beat(2)60.22%
Max EPS beat(2)77.76%
EPS beat(4)4
Avg EPS beat(4)78.49%
Min EPS beat(4)30.24%
Max EPS beat(4)145.76%
EPS beat(8)8
Avg EPS beat(8)174.82%
EPS beat(12)9
Avg EPS beat(12)144.89%
EPS beat(16)10
Avg EPS beat(16)67.38%
Revenue beat(2)2
Avg Revenue beat(2)4.33%
Min Revenue beat(2)2.99%
Max Revenue beat(2)5.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)5.66%
Revenue beat(8)5
Avg Revenue beat(8)3.29%
Revenue beat(12)7
Avg Revenue beat(12)2.79%
Revenue beat(16)8
Avg Revenue beat(16)-1.31%
PT rev (1m)0%
PT rev (3m)25%
EPS NQ rev (1m)29.95%
EPS NQ rev (3m)76.55%
EPS NY rev (1m)51.11%
EPS NY rev (3m)104.51%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)2.71%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.89 | ||
| P/FCF | 5.23 | ||
| P/OCF | 4.94 | ||
| P/B | 2.32 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)7.02
EY7.51%
EPS(NY)8.48
Fwd EY9.07%
FCF(TTM)17.89
FCFY19.13%
OCF(TTM)18.91
OCFY20.23%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.59
Graham Number79.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 19.69% | ||
| ROCE | 6.41% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 6.99% | ||
| OM | 9.74% | ||
| PM (TTM) | 7.55% | ||
| GM | N/A | ||
| FCFM | 17.02% |
ROA(3y)-0.29%
ROA(5y)1.74%
ROE(3y)-1.14%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y17.76%
ROICexgc growth 5Y2.29%
ROICexc growth 3Y17.72%
ROICexc growth 5Y2.52%
OM growth 3Y11.77%
OM growth 5Y2.15%
PM growth 3Y11.24%
PM growth 5Y1.18%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 109.48% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 19.8 | ||
| Cash Conversion | 169.19% | ||
| Profit Quality | 225.4% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 1.51 |
F-Score4
WACC8.37%
ROIC/WACC0.68
Cap/Depr(3y)91.44%
Cap/Depr(5y)81.7%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.26%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%51.97%
EPS Next Y-4.48%
EPS Next 2Y8.63%
EPS Next 3Y2.87%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%3.56%
Revenue Next Year8.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.18%
Revenue Next 5YN/A
EBIT growth 1Y-21.24%
EBIT growth 3Y24.17%
EBIT growth 5Y8.92%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y283.32%
FCF growth 3Y29.13%
FCF growth 5Y15.62%
OCF growth 1Y254.65%
OCF growth 3Y27.4%
OCF growth 5Y14.82%
MERCURY GENERAL CORP / MCY FAQ
What is the ChartMill fundamental rating of MERCURY GENERAL CORP (MCY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MCY.
What is the valuation status of MERCURY GENERAL CORP (MCY) stock?
ChartMill assigns a valuation rating of 4 / 10 to MERCURY GENERAL CORP (MCY). This can be considered as Fairly Valued.
How profitable is MERCURY GENERAL CORP (MCY) stock?
MERCURY GENERAL CORP (MCY) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for MCY stock?
The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 13.32 and the Price/Book (PB) ratio is 2.32.
How sustainable is the dividend of MERCURY GENERAL CORP (MCY) stock?
The dividend rating of MERCURY GENERAL CORP (MCY) is 3 / 10 and the dividend payout ratio is 16%.