MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
91.55 USD
+2.86 (+3.22%)
91.55 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
MCY had positive earnings in the past year.
In the past year MCY had a positive cash flow from operations.
MCY had positive earnings in 4 of the past 5 years.
MCY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.69%, MCY is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
MCY has a better Return On Equity (19.69%) than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.71%, MCY belongs to the top of the industry, outperforming 84.35% 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
The Profit Margin of MCY (7.55%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
Looking at the Operating Margin, with a value of 9.74%, MCY is doing worse than 61.22% of the companies in the same industry.
MCY's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MCY is destroying value.
Compared to 1 year ago, MCY has about the same amount of shares outstanding.
MCY has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, MCY has an improved debt to assets ratio.
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 better Altman-Z score (1.51) than 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.
MCY has a Debt to FCF ratio of 0.58. This is in the better half of the industry: MCY outperforms 78.23% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MCY is not too dependend on debt financing.
MCY's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MCY outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.69
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
MCY's Current ratio of 0.12 is fine compared to the rest of the industry. MCY outperforms 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.
MCY has a Quick ratio of 0.12. This is in the better half of the industry: MCY outperforms 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
MCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.26%, which is quite impressive.
The Earnings Per Share has been growing by 22.56% on average over the past years. This is a very strong growth
Looking at the last year, MCY shows a small growth in Revenue. The Revenue has grown by 6.18% in the last year.
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
Based on estimates for the next years, MCY will show a small growth in Earnings Per Share. The EPS will grow by 2.43% on average per year.
Based on estimates for the next years, MCY will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.04, 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.
The average S&P500 Price/Earnings ratio is at 25.45. MCY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.25 indicates a correct 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 34.46. MCY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
63.95% of the companies in the same industry are more expensive than MCY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 70.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.12 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y1.96%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, MCY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, MCY has a dividend in line with its industry peers.
With a Dividend Yield of 1.43, MCY pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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.
MCY has decreased its dividend recently.
Dividend Growth(5Y)-12.76%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
16.00% of the earnings are spent on dividend by MCY. This is a low number and sustainable payout ratio.
DP16%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
91.55
+2.86 (+3.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change-0.34%
Ins Owners35.51%
Ins Owner Change0%
Market Cap5.07B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (11.41%)
Short Float %7.26%
Short Ratio8.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)0%
EPS NY rev (3m)35.34%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.87 | ||
| P/FCF | 5.12 | ||
| P/OCF | 4.84 | ||
| P/B | 2.27 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)7.02
EY7.67%
EPS(NY)7.47
Fwd EY8.16%
FCF(TTM)17.89
FCFY19.54%
OCF(TTM)18.91
OCFY20.66%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.58
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
WACC8.29%
ROIC/WACC0.69
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-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%3.56%
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
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 5 / 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 6 / 10.
Can you provide the PE and PB ratios for MCY stock?
The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 13.04 and the Price/Book (PB) ratio is 2.27.
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%.