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MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis

USA - NYSE:MCY - US5894001008 - Common Stock

79.01 USD
+1.35 (+1.74%)
Last: 9/18/2025, 3:22:13 PM
Fundamental Rating

5

MCY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. MCY has only an average score on both its financial health and profitability. MCY is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
MCY had a positive operating cash flow in each of the past 5 years.
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

The Return On Assets of MCY (4.29%) is better than 80.82% of its industry peers.
Looking at the Return On Equity, with a value of 19.81%, MCY belongs to the top of the industry, outperforming 89.73% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.25%, MCY belongs to the best of the industry, outperforming 82.88% of the companies in the same industry.
Industry RankSector 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
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

With a Profit Margin value of 6.76%, MCY perfoms like the industry average, outperforming 46.58% 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.
MCY has a Operating Margin (8.75%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MCY has grown nicely.
Industry RankSector 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
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

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.
The debt/assets ratio for MCY has been reduced compared to a year ago.
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

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.
The Altman-Z score of MCY (1.41) is better than 82.88% 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's Debt to FCF ratio of 0.70 is fine compared to the rest of the industry. MCY outperforms 76.71% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that MCY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, MCY perfoms like the industry average, outperforming 54.79% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.7
Altman-Z 1.41
ROIC/WACC0.64
WACC8.2%
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 0.19. 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 0.19 is fine compared to the rest of the industry. MCY outperforms 67.12% of its industry peers.
A Quick Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
MCY's Quick ratio of 0.19 is fine compared to the rest of the industry. MCY outperforms 67.12% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
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 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.
Looking at the last year, MCY shows a quite strong growth in Revenue. The Revenue has grown by 14.93% in the last year.
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

Based on estimates for the next years, MCY will show a decrease in Earnings Per Share. The EPS will decrease by -1.40% 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-53.29%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
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

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.86, MCY is valued correctly.
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 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of MCY.
The rest of the industry has a similar Price/Forward Earnings ratio as MCY.
MCY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 13.86
Fwd PE 11.72
MCY Price Earnings VS Forward Price EarningsMCY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

66.44% 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 the industry average as 71.92% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.35
EV/EBITDA 6.75
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

MCY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%

3

5. Dividend

5.1 Amount

MCY has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, MCY has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.61%

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
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

18.03% of the earnings are spent on dividend by MCY. This is a low number and sustainable payout ratio.
MCY's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP18.03%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
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 (9/18/2025, 3:22:13 PM)

79.01

+1.35 (+1.74%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-27 2025-10-27
Inst Owners49.84%
Inst Owner Change-8.24%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.38B
Analysts80
Price Target81.6 (3.28%)
Short Float %6.17%
Short Ratio6.34
Dividend
Industry RankSector Rank
Dividend Yield 1.61%
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date09-11 2025-09-11 (0.3175)
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)0%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)13.68%
EPS NY rev (3m)13.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.86
Fwd PE 11.72
P/S 0.76
P/FCF 5.35
P/OCF 5.03
P/B 2.22
P/tB 2.28
EV/EBITDA 6.75
EPS(TTM)5.7
EY7.21%
EPS(NY)6.74
Fwd EY8.53%
FCF(TTM)14.76
FCFY18.68%
OCF(TTM)15.69
OCFY19.86%
SpS104.14
BVpS35.56
TBVpS34.65
PEG (NY)N/A
PEG (5Y)0.61
Profitability
Industry RankSector 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 RankSector 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
WACC8.2%
ROIC/WACC0.64
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-53.29%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
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%