MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
91.09 USD
-0.3 (-0.33%)
91.09 USD
0 (0%)
Overall MCY gets a fundamental rating of 5 out of 10. We evaluated MCY against 149 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 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 a decent Return On Assets value of 4.69%, MCY is doing good in the industry, outperforming 79.87% of the companies in the same industry.
- MCY's Return On Equity of 19.69% is amongst the best of the industry. MCY outperforms 86.58% of its industry peers.
- MCY has a Return On Invested Capital of 5.71%. This is amongst the best in the industry. MCY outperforms 83.22% of its industry peers.
| 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
- MCY has a Profit Margin of 7.55%. This is comparable to the rest of the industry: MCY outperforms 46.31% of its industry peers.
- MCY's Profit Margin has been stable in the last couple of years.
- The Operating Margin of MCY (9.74%) is worse than 61.74% of its industry peers.
- 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.
- The number of shares outstanding for MCY remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, MCY has about the same amount of shares outstanding.
- The debt/assets ratio for MCY has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.50, we must say that MCY is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.50, MCY belongs to the top of the industry, outperforming 83.89% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of MCY (0.58) is better than 79.19% of its industry peers.
- MCY has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- MCY has a better Debt to Equity ratio (0.26) than 62.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.68
WACC8.45%
2.3 Liquidity
- A Current Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
- MCY has a better Current ratio (0.12) than 63.76% 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.
- Looking at the Quick ratio, with a value of 0.12, MCY is in the better half of the industry, outperforming 63.76% of the companies in the same industry.
| 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.
- MCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.56% yearly.
- MCY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.18%.
- 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)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 2.87% on average per year.
- The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y-4.48%
EPS Next 2Y8.63%
EPS Next 3Y2.87%
EPS Next 5YN/A
Revenue Next Year8.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.18%
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
- Based on the Price/Earnings ratio of 12.98, the valuation of MCY can be described as correct.
- MCY's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.38. MCY is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.74, which indicates a very decent valuation of MCY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MCY is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, MCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MCY is valued a bit cheaper than 66.44% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 71.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.09 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y8.63%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
- MCY has a Yearly Dividend Yield of 1.39%.
- MCY's Dividend Yield is comparable with the industry average which is at 2.53.
- MCY's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
- 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 2Y8.63%
EPS Next 3Y2.87%
91.09
-0.3 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners47.23%
Inst Owner Change0.18%
Ins Owners35.51%
Ins Owner Change0%
Market Cap5.05B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (11.98%)
Short Float %6.74%
Short Ratio8.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP16%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.95%
EPS NY rev (1m)0%
EPS NY rev (3m)177.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.87 | ||
| P/FCF | 5.09 | ||
| P/OCF | 4.82 | ||
| P/B | 2.26 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)7.02
EY7.71%
EPS(NY)8.48
Fwd EY9.31%
FCF(TTM)17.89
FCFY19.64%
OCF(TTM)18.91
OCFY20.76%
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 | 1.5 |
F-Score4
WACC8.45%
ROIC/WACC0.68
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-4.48%
EPS Next 2Y8.63%
EPS Next 3Y2.87%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%3.56%
Revenue Next Year8.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.18%
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.
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 12.98 and the Price/Book (PB) ratio is 2.26.
Can you provide the dividend sustainability for MCY stock?
The dividend rating of MERCURY GENERAL CORP (MCY) is 3 / 10 and the dividend payout ratio is 16%.