MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
NYSE:MCY - US5894001008 - Common Stock
76.44 USD
+0.47 (+0.62%)
76.44 USD
0 (0%)
Overall MCY gets a fundamental rating of 5 out of 10. We evaluated MCY against 141 industry peers in the Insurance industry. MCY has an average financial health and profitability rating. 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.
MCY had a positive operating cash flow in the past year.
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 an excellent Return On Assets value of 4.29%, MCY belongs to the best of the industry, outperforming 81.56% of the companies in the same industry.
The Return On Equity of MCY (19.81%) is better than 89.36% of its industry peers.
MCY has a Return On Invested Capital of 5.25%. This is amongst the best in the industry. MCY outperforms 83.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.81% | ||
| ROIC | 5.25% |
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
With a Profit Margin value of 6.76%, MCY perfoms like the industry average, outperforming 46.81% of the companies in the same 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 8.75%, MCY is in line with its industry, outperforming 42.55% of the companies in the same industry.
MCY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 6.76% | ||
| 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.
The number of shares outstanding for MCY remains at a similar level compared to 1 year ago.
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
MCY has an Altman-Z score of 1.41. This is a bad value and indicates that MCY is not financially healthy and even has some risk of bankruptcy.
MCY has a Altman-Z score of 1.41. This is amongst the best in the industry. MCY outperforms 83.69% of its industry peers.
MCY has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
MCY has a better Debt to FCF ratio (0.70) than 75.89% of its industry peers.
MCY has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.29, MCY perfoms like the industry average, outperforming 58.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.63
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
MCY's Current ratio of 0.19 is fine compared to the rest of the industry. MCY outperforms 68.09% of its industry peers.
A Quick Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
MCY has a Quick ratio of 0.19. This is in the better half of the industry: MCY outperforms 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
MCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.02%, which is quite impressive.
Measured over the past years, MCY shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.56% on average per year.
MCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.93%.
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)37.02%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%144.95%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%13.25%
3.2 Future
The Earnings Per Share is expected to grow by 0.15% on average over the next years.
MCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.10% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.41 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.
When comparing the Price/Earnings ratio of MCY to the average of the S&P500 Index (27.24), we can say MCY is valued rather cheaply.
MCY is valuated reasonably with a Price/Forward Earnings ratio of 11.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.82. MCY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCY is valued a bit cheaper than the industry average as 68.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.18 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
MCY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
MCY has a Yearly Dividend Yield of 1.67%.
MCY's Dividend Yield is comparable with the industry average which is at 3.59.
Compared to the average S&P500 Dividend Yield of 2.36, MCY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
MCY pays out 18.03% of its income as dividend. This is a sustainable payout ratio.
DP18.03%
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
76.44
+0.47 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners49.84%
Inst Owner Change-8.25%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.23B
Analysts80
Price Target81.6 (6.75%)
Short Float %5.75%
Short Ratio5.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.23%
Min EPS beat(2)30.24%
Max EPS beat(2)60.22%
EPS beat(4)4
Avg EPS beat(4)71.04%
Min EPS beat(4)30.24%
Max EPS beat(4)145.76%
EPS beat(8)8
Avg EPS beat(8)249.9%
EPS beat(12)9
Avg EPS beat(12)155.98%
EPS beat(16)9
Avg EPS beat(16)61.22%
Revenue beat(2)1
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-6.45%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)10.74%
Revenue beat(8)4
Avg Revenue beat(8)1.99%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)7
Avg Revenue beat(16)-1.78%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)3.75%
EPS NQ rev (3m)29.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.34 | ||
| P/S | 0.73 | ||
| P/FCF | 5.18 | ||
| P/OCF | 4.87 | ||
| P/B | 2.15 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)5.7
EY7.46%
EPS(NY)6.74
Fwd EY8.82%
FCF(TTM)14.76
FCFY19.31%
OCF(TTM)15.69
OCFY20.53%
SpS104.14
BVpS35.56
TBVpS34.65
PEG (NY)N/A
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.81% | ||
| ROCE | 5.89% | ||
| ROIC | 5.25% | ||
| ROICexc | 6.05% | ||
| ROICexgc | 6.56% | ||
| OM | 8.75% | ||
| PM (TTM) | 6.76% | ||
| GM | N/A | ||
| FCFM | 14.17% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.7 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 100.86% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 156.35% | ||
| Profit Quality | 209.59% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.41 |
F-Score7
WACC8.39%
ROIC/WACC0.63
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)37.02%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%144.95%
EPS Next Y-58.91%
EPS Next 2Y-3.17%
EPS Next 3Y0.15%
EPS Next 5YN/A
Revenue 1Y (TTM)14.93%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%13.25%
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
EBIT growth 1Y21.22%
EBIT growth 3Y24.17%
EBIT growth 5Y8.92%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y262.38%
FCF growth 3Y29.13%
FCF growth 5Y15.62%
OCF growth 1Y230.42%
OCF growth 3Y27.4%
OCF growth 5Y14.82%