MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis

NYSE:MCY • US5894001008

83.81 USD
-2.63 (-3.04%)
At close: Feb 23, 2026
83.81 USD
0 (0%)
After Hours: 2/23/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

MCY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 150 industry peers in the Insurance industry. MCY has an average financial health and profitability rating. MCY is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

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.
  • Each year in the past 5 years MCY had a positive operating cash flow.
MCY Yearly Net Income VS EBIT VS OCF VS FCFMCY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • MCY's Return On Assets of 5.66% is amongst the best of the industry. MCY outperforms 86.00% of its industry peers.
  • With an excellent Return On Equity value of 22.38%, MCY belongs to the best of the industry, outperforming 88.67% of the companies in the same industry.
  • MCY has a better Return On Invested Capital (6.22%) than 86.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCY is significantly below the industry average of 15.13%.
  • The last Return On Invested Capital (6.22%) for MCY is above the 3 year average (4.61%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.66%
ROE 22.38%
ROIC 6.22%
ROA(3y)4.22%
ROA(5y)1.69%
ROE(3y)17.55%
ROE(5y)6.11%
ROIC(3y)4.61%
ROIC(5y)N/A
MCY Yearly ROA, ROE, ROICMCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • MCY has a Profit Margin (9.03%) which is in line with its industry peers.
  • MCY's Profit Margin has declined in the last couple of years.
  • MCY has a Operating Margin (11.55%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of MCY has declined.
Industry RankSector Rank
OM 11.55%
PM (TTM) 9.03%
GM N/A
OM growth 3YN/A
OM growth 5Y-1.67%
PM growth 3YN/A
PM growth 5Y-1.82%
GM growth 3YN/A
GM growth 5YN/A
MCY Yearly Profit, Operating, Gross MarginsMCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • The number of shares outstanding for MCY remains at a similar level compared to 5 years ago.
  • The debt/assets ratio for MCY has been reduced compared to a year ago.
MCY Yearly Shares OutstandingMCY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
MCY Yearly Total Debt VS Total AssetsMCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 1.56, we must say that MCY is in the distress zone and has some risk of bankruptcy.
  • MCY has a better Altman-Z score (1.56) than 88.67% of its industry peers.
  • The Debt to FCF ratio of MCY is 0.56, which is an excellent value as it means it would take MCY, only 0.56 years of fcf income to pay off all of its debts.
  • MCY has a Debt to FCF ratio of 0.56. This is in the better half of the industry: MCY outperforms 79.33% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that MCY is not too dependend on debt financing.
  • The Debt to Equity ratio of MCY (0.24) is better than 64.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Altman-Z 1.56
ROIC/WACC0.76
WACC8.2%
MCY Yearly LT Debt VS Equity VS FCFMCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • With a decent Current ratio value of 0.18, MCY is doing good in the industry, outperforming 68.00% of the companies in the same industry.
  • A Quick Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • MCY's Quick ratio of 0.18 is fine compared to the rest of the industry. MCY outperforms 68.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.18
Quick Ratio 0.18
MCY Yearly Current Assets VS Current LiabilitesMCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 9.87% over the past year.
  • The Earnings Per Share has been growing slightly by 7.36% on average over the past years.
  • The Revenue has grown by 9.44% in the past year. This is quite good.
  • Measured over the past years, MCY shows a quite strong growth in Revenue. The Revenue has been growing by 9.63% on average per year.
EPS 1Y (TTM)9.87%
EPS 3YN/A
EPS 5Y7.36%
EPS Q2Q%31.65%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y18.04%
Revenue growth 5Y9.63%
Sales Q2Q%12.41%

3.2 Future

  • MCY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.46% yearly.
  • Based on estimates for the next years, MCY will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y7.39%
EPS Next 2Y-0.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MCY Yearly Revenue VS EstimatesMCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
MCY Yearly EPS VS EstimatesMCY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 10.61, the valuation of MCY can be described as very reasonable.
  • MCY's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, MCY is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.88, the valuation of MCY can be described as very reasonable.
  • The rest of the industry has a similar Price/Forward Earnings ratio as MCY.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, MCY is valued rather cheaply.
Industry RankSector Rank
PE 10.61
Fwd PE 9.88
MCY Price Earnings VS Forward Price EarningsMCY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MCY is valued a bit cheaper than 76.67% of the companies in the same industry.
  • 73.33% of the companies in the same industry are more expensive than MCY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.51
EV/EBITDA 5.45
MCY Per share dataMCY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)1.44
EPS Next 2Y-0.46%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • MCY has a Yearly Dividend Yield of 1.47%.
  • MCY's Dividend Yield is comparable with the industry average which is at 2.58.
  • MCY's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.47%

5.2 History

  • The dividend of MCY decreases each year by -12.81%.
  • 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)-12.81%
Div Incr Years0
Div Non Decr Years1
MCY Yearly Dividends per shareMCY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MCY pays out 13.00% of its income as dividend. This is a sustainable payout ratio.
  • The Dividend Rate of MCY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP13%
EPS Next 2Y-0.46%
EPS Next 3YN/A
MCY Yearly Income VS Free CF VS DividendMCY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
MCY Dividend Payout.MCY Dividend Payout, showing the Payout Ratio.MCY Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

MERCURY GENERAL CORP

NYSE:MCY (2/23/2026, 8:04:00 PM)

After market: 83.81 0 (0%)

83.81

-2.63 (-3.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-04
Inst Owners47.23%
Inst Owner Change-0.61%
Ins Owners35.51%
Ins Owner Change0%
Market Cap4.64B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target102 (21.7%)
Short Float %7.04%
Short Ratio8.38
Dividend
Industry RankSector Rank
Dividend Yield 1.47%
Yearly Dividend1.27
Dividend Growth(5Y)-12.81%
DP13%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-12
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.66%
Min EPS beat(2)41.55%
Max EPS beat(2)77.76%
EPS beat(4)4
Avg EPS beat(4)52.44%
Min EPS beat(4)30.24%
Max EPS beat(4)77.76%
EPS beat(8)8
Avg EPS beat(8)119.52%
EPS beat(12)10
Avg EPS beat(12)173.25%
EPS beat(16)11
Avg EPS beat(16)79.13%
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)0.77%
Max Revenue beat(2)5.66%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)5.66%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)7
Avg Revenue beat(12)2.22%
Revenue beat(16)8
Avg Revenue beat(16)-1.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)51.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.71%
Valuation
Industry RankSector Rank
PE 10.61
Fwd PE 9.88
P/S 0.77
P/FCF 4.51
P/OCF 4.27
P/B 1.92
P/tB 1.96
EV/EBITDA 5.45
EPS(TTM)7.9
EY9.43%
EPS(NY)8.48
Fwd EY10.12%
FCF(TTM)18.57
FCFY22.16%
OCF(TTM)19.63
OCFY23.42%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)1.44
PEG (5Y)1.44
Graham Number88.07
Profitability
Industry RankSector Rank
ROA 5.66%
ROE 22.38%
ROCE 7.63%
ROIC 6.22%
ROICexc 7.27%
ROICexgc 7.55%
OM 11.55%
PM (TTM) 9.03%
GM N/A
FCFM 17.17%
ROA(3y)4.22%
ROA(5y)1.69%
ROE(3y)17.55%
ROE(5y)6.11%
ROIC(3y)4.61%
ROIC(5y)N/A
ROICexc(3y)5.2%
ROICexc(5y)N/A
ROICexgc(3y)5.38%
ROICexgc(5y)N/A
ROCE(3y)5.65%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y1.58%
ROICexc growth 3YN/A
ROICexc growth 5Y1.48%
OM growth 3YN/A
OM growth 5Y-1.67%
PM growth 3YN/A
PM growth 5Y-1.82%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Debt/EBITDA 0.77
Cap/Depr 115.48%
Cap/Sales 0.98%
Interest Coverage 24.58
Cash Conversion 146.35%
Profit Quality 190.13%
Current Ratio 0.18
Quick Ratio 0.18
Altman-Z 1.56
F-Score6
WACC8.2%
ROIC/WACC0.76
Cap/Depr(3y)113.98%
Cap/Depr(5y)90.17%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.92%
Profit Quality(3y)277.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.87%
EPS 3YN/A
EPS 5Y7.36%
EPS Q2Q%31.65%
EPS Next Y7.39%
EPS Next 2Y-0.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.44%
Revenue growth 3Y18.04%
Revenue growth 5Y9.63%
Sales Q2Q%12.41%
Revenue Next Year4.4%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y14.29%
EBIT growth 3YN/A
EBIT growth 5Y7.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.81%
FCF growth 3Y48.04%
FCF growth 5Y12.71%
OCF growth 1Y4.83%
OCF growth 3Y45.55%
OCF growth 5Y12.41%

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.


Can you provide the valuation status for MERCURY GENERAL CORP?

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 5 / 10.


What is the valuation of MERCURY GENERAL CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 10.61 and the Price/Book (PB) ratio is 1.92.


Can you provide the dividend sustainability for MCY stock?

The dividend rating of MERCURY GENERAL CORP (MCY) is 4 / 10 and the dividend payout ratio is 13%.