MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - NYSE:MCY - US5894001008 - Common Stock
81.45 USD
-0.05 (-0.06%)
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 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.
Of the past 5 years MCY 4 years were profitable.
MCY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCY's Return On Assets of 4.29% is amongst the best of the industry. MCY outperforms 80.82% of its industry peers.
MCY has a Return On Equity of 19.81%. This is amongst the best in the industry. MCY outperforms 89.73% of its industry peers.
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 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 46.58% 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.
With a Operating Margin value of 8.75%, MCY perfoms like the industry average, outperforming 41.10% of the companies in the same industry.
In the last couple of years the Operating Margin of MCY has grown nicely.
| 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.
MCY has about the same amout of shares outstanding than it did 1 year ago.
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.
2.2 Solvency
MCY has an Altman-Z score of 1.43. 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 1.43. This is amongst the best in the industry. MCY outperforms 82.19% of its industry peers.
The Debt to FCF ratio of MCY is 0.70, which is an excellent value as it means it would take MCY, only 0.70 years of fcf income to pay off all of its debts.
MCY has a Debt to FCF ratio of 0.70. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 0.29, MCY is in line with its industry, outperforming 54.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.63
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
MCY has a better Current ratio (0.19) than 67.12% of its industry peers.
A Quick Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.19, MCY is doing good in the industry, outperforming 67.12% of the companies in the same industry.
| 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%.
The Revenue has been growing slightly by 6.63% on average over the past years.
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.
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-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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.29 indicates a correct valuation of MCY.
MCY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MCY to the average of the S&P500 Index (27.41), we can say MCY is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of MCY.
The rest of the industry has a similar Price/Forward Earnings ratio as MCY.
When comparing the Price/Forward Earnings ratio of MCY to the average of the S&P500 Index (22.87), we can say MCY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
63.70% of the companies in the same industry are more expensive than MCY, based on the Enterprise Value to EBITDA ratio.
70.55% of the companies in the same industry are more expensive than MCY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 7.13 |
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)0.63
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, MCY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.44, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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.
The dividend of MCY decreased 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.
The Dividend Rate of MCY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP18.03%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
NYSE:MCY (9/24/2025, 9:44:50 AM)
81.45
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners49.84%
Inst Owner Change-8.24%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.51B
Analysts80
Price Target81.6 (0.18%)
Short Float %6.17%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)0%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)0%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.78 | ||
| P/FCF | 5.52 | ||
| P/OCF | 5.19 | ||
| P/B | 2.29 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)5.7
EY7%
EPS(NY)6.74
Fwd EY8.28%
FCF(TTM)14.76
FCFY18.12%
OCF(TTM)15.69
OCFY19.27%
SpS104.14
BVpS35.56
TBVpS34.65
PEG (NY)N/A
PEG (5Y)0.63
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 | 1.43 |
F-Score7
WACC8.32%
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-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%