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MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis

NYSE:MCY - New York Stock Exchange, Inc. - US5894001008 - Common Stock - Currency: USD

64.48  +0.79 (+1.24%)

After market: 64.48 0 (0%)

Fundamental Rating

5

Taking everything into account, MCY scores 5 out of 10 in our fundamental rating. MCY was compared to 143 industry peers in the Insurance industry. Both the profitability and the financial health of MCY get a neutral evaluation. Nothing too spectacular is happening here. MCY is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year MCY was profitable.
MCY had a positive operating cash flow in the past year.
MCY had positive earnings in 4 of the past 5 years.
In the past 5 years MCY always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

With a decent Return On Assets value of 3.17%, MCY is doing good in the industry, outperforming 72.73% of the companies in the same industry.
MCY has a Return On Equity of 15.72%. This is in the better half of the industry: MCY outperforms 76.92% of its industry peers.
With a decent Return On Invested Capital value of 3.77%, MCY is doing good in the industry, outperforming 73.43% of the companies in the same industry.
Industry RankSector Rank
ROA 3.17%
ROE 15.72%
ROIC 3.77%
ROA(3y)-0.29%
ROA(5y)1.74%
ROE(3y)-1.14%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
MCY Yearly ROA, ROE, ROICMCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 -30

1.3 Margins

MCY's Profit Margin of 5.11% is on the low side compared to the rest of the industry. MCY is outperformed by 62.24% of its industry peers.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
The Operating Margin of MCY (6.68%) is worse than 62.94% of its industry peers.
MCY's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.68%
PM (TTM) 5.11%
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
MCY Yearly Profit, Operating, Gross MarginsMCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCY is destroying value.
Compared to 1 year ago, MCY has about the same amount of shares outstanding.
Compared to 5 years ago, MCY has about the same amount of shares outstanding.
Compared to 1 year ago, MCY has an improved debt to assets ratio.
MCY Yearly Shares OutstandingMCY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
MCY Yearly Total Debt VS Total AssetsMCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

Based on the Altman-Z score of 1.31, we must say that MCY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MCY (1.31) is better than 83.22% of its industry peers.
MCY has a debt to FCF ratio of 0.79. This is a very positive value and a sign of high solvency as it would only need 0.79 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.79, MCY is doing good in the industry, outperforming 69.93% of the companies in the same industry.
MCY has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
MCY's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. MCY outperforms 53.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 0.79
Altman-Z 1.31
ROIC/WACC0.45
WACC8.44%
MCY Yearly LT Debt VS Equity VS FCFMCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

MCY has a Current Ratio of 0.80. 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's Current ratio of 0.80 is fine compared to the rest of the industry. MCY outperforms 76.92% of its industry peers.
A Quick Ratio of 0.80 indicates that MCY may have some problems paying its short term obligations.
MCY has a Quick ratio of 0.80. This is in the better half of the industry: MCY outperforms 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.8
MCY Yearly Current Assets VS Current LiabilitesMCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

5

3. Growth

3.1 Past

MCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.46%, which is quite impressive.
MCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.56% yearly.
The Revenue has grown by 16.64% in the past year. This is quite good.
Measured over the past years, MCY shows a small growth in Revenue. The Revenue has been growing by 6.63% on average per year.
EPS 1Y (TTM)58.46%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%-393.59%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%9.4%

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 0.15% 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-58.91%
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
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 stable: in the next years the growth will be about the same than in the last years.
MCY Yearly Revenue VS EstimatesMCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.65, which indicates a correct valuation of MCY.
MCY's Price/Earnings ratio is in line with the industry average.
MCY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.56 indicates a reasonable valuation of MCY.
MCY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, MCY is valued rather cheaply.
Industry RankSector Rank
PE 15.65
Fwd PE 9.56
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

69.93% of the companies in the same industry are more expensive than MCY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 69.93% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.91
EV/EBITDA 6.73
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

PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-3.17%
EPS Next 3Y0.15%

4

5. Dividend

5.1 Amount

MCY has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 3.23, MCY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MCY has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.99%

5.2 History

The dividend of MCY decreases each year by -12.76%.
MCY has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MCY decreased recently.
Dividend Growth(5Y)-12.76%
Div Incr Years0
Div Non Decr Years1
MCY Yearly Dividends per shareMCY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

MCY pays out 24.58% of its income as dividend. This is a sustainable payout ratio.
DP24.58%
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
MCY Yearly Income VS Free CF VS DividendMCY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M
MCY Dividend Payout.MCY Dividend Payout, showing the Payout Ratio.MCY Dividend Payout.PayoutRetained Earnings

MERCURY GENERAL CORP

NYSE:MCY (5/30/2025, 8:14:11 PM)

After market: 64.48 0 (0%)

64.48

+0.79 (+1.24%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28
Inst Owners44.4%
Inst Owner Change10.33%
Ins Owners35.51%
Ins Owner Change0%
Market Cap3.57B
Analysts80
Price Target81.6 (26.55%)
Short Float %6.53%
Short Ratio4
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP24.58%
Div Incr Years0
Div Non Decr Years1
Ex-Date06-12 2025-06-12 (0.3175)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88%
Min EPS beat(2)30.24%
Max EPS beat(2)145.76%
EPS beat(4)4
Avg EPS beat(4)64.71%
Min EPS beat(4)30.24%
Max EPS beat(4)145.76%
EPS beat(8)7
Avg EPS beat(8)241.65%
EPS beat(12)8
Avg EPS beat(12)108.66%
EPS beat(16)8
Avg EPS beat(16)57.16%
Revenue beat(2)0
Avg Revenue beat(2)-4.92%
Min Revenue beat(2)-6.45%
Max Revenue beat(2)-3.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)10.74%
Revenue beat(8)3
Avg Revenue beat(8)1.58%
Revenue beat(12)5
Avg Revenue beat(12)-1.16%
Revenue beat(16)7
Avg Revenue beat(16)-1.5%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1750%
EPS NQ rev (3m)50%
EPS NY rev (1m)101.72%
EPS NY rev (3m)101.72%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-1.87%
Valuation
Industry RankSector Rank
PE 15.65
Fwd PE 9.56
P/S 0.64
P/FCF 4.91
P/OCF 4.6
P/B 1.96
P/tB 2.02
EV/EBITDA 6.73
EPS(TTM)4.12
EY6.39%
EPS(NY)6.74
Fwd EY10.46%
FCF(TTM)13.12
FCFY20.35%
OCF(TTM)14.01
OCFY21.72%
SpS101.02
BVpS32.87
TBVpS31.96
PEG (NY)N/A
PEG (5Y)0.69
Profitability
Industry RankSector Rank
ROA 3.17%
ROE 15.72%
ROCE 4.23%
ROIC 3.77%
ROICexc 4.41%
ROICexgc 5.01%
OM 6.68%
PM (TTM) 5.11%
GM N/A
FCFM 12.99%
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
ROICexcg growth 3Y17.76%
ROICexcg 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-Score7
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 0.79
Debt/EBITDA 1.37
Cap/Depr 109.38%
Cap/Sales 0.88%
Interest Coverage 12.66
Cash Conversion 185.41%
Profit Quality 253.96%
Current Ratio 0.8
Quick Ratio 0.8
Altman-Z 1.31
F-Score7
WACC8.44%
ROIC/WACC0.45
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)58.46%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%-393.59%
EPS Next Y-58.91%
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
EPS Next 5YN/A
Revenue 1Y (TTM)16.64%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%9.4%
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
EBIT growth 1Y34.53%
EBIT growth 3Y24.17%
EBIT growth 5Y8.92%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y218.33%
FCF growth 3Y29.13%
FCF growth 5Y15.62%
OCF growth 1Y193.63%
OCF growth 3Y27.4%
OCF growth 5Y14.82%