MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - NYSE:MCY - US5894001008 - Common Stock
87.28 USD
+0.32 (+0.37%)
87.28 USD
0 (0%)
Overall MCY gets a fundamental rating of 5 out of 10. We evaluated MCY against 146 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 correct valuation and a medium growth rate.
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.
Of the past 5 years MCY 4 years were profitable.
In the past 5 years MCY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MCY (4.69%) is better than 82.19% of its industry peers.
With an excellent Return On Equity value of 19.69%, MCY belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
MCY has a Return On Invested Capital of 5.71%. This is amongst the best in the industry. MCY outperforms 84.93% 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's Profit Margin of 7.55% is in line compared to the rest of the industry. MCY outperforms 48.63% of its industry peers.
MCY's Profit Margin has been stable in the last couple of years.
MCY has a Operating Margin of 9.74%. This is comparable to the rest of the industry: MCY outperforms 40.41% 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
MCY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.49. 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 1.49. This is amongst the best in the industry. MCY outperforms 83.56% of its industry peers.
The Debt to FCF ratio of MCY is 0.58, which is an excellent value as it means it would take MCY, only 0.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.58, MCY is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
MCY has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MCY's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MCY outperforms 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.69
WACC8.33%
2.3 Liquidity
MCY has a Current 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.
MCY has a better Current ratio (0.12) than 63.70% 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.
With a decent Quick ratio value of 0.12, MCY is doing good in the industry, outperforming 63.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.26% over the past year.
MCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.56% yearly.
Looking at the last year, MCY shows a small growth in Revenue. The Revenue has grown by 6.18% 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)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 2.43% on average per year.
The Revenue is expected to grow by 6.10% on average over the next years.
EPS Next Y-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
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
The Price/Earnings ratio is 12.43, which 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.
MCY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
MCY is valuated reasonably with a Price/Forward Earnings ratio of 11.68.
MCY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.43. MCY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 69.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 74.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
The decent profitability rating of MCY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y1.96%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
MCY has a Yearly Dividend Yield of 1.48%.
MCY's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to the average S&P500 Dividend Yield of 2.36, MCY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
16.00% of the earnings are spent on dividend by MCY. This is a low number and sustainable payout ratio.
DP16%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
87.28
+0.32 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change-0.29%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.83B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (16.87%)
Short Float %6.71%
Short Ratio8.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP16%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.61%
EPS NY rev (1m)83.67%
EPS NY rev (3m)53.85%
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 | 12.43 | ||
| Fwd PE | 11.68 | ||
| P/S | 0.83 | ||
| P/FCF | 4.88 | ||
| P/OCF | 4.61 | ||
| P/B | 2.17 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 6.68 |
EPS(TTM)7.02
EY8.04%
EPS(NY)7.47
Fwd EY8.56%
FCF(TTM)17.89
FCFY20.5%
OCF(TTM)18.91
OCFY21.67%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.55
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 | 1.49 |
F-Score4
WACC8.33%
ROIC/WACC0.69
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-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%3.56%
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
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.
What is the valuation status of MERCURY GENERAL CORP (MCY) stock?
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 6 / 10.
Can you provide the PE and PB ratios for MCY stock?
The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 12.43 and the Price/Book (PB) ratio is 2.17.
How sustainable is the dividend of MERCURY GENERAL CORP (MCY) stock?
The dividend rating of MERCURY GENERAL CORP (MCY) is 3 / 10 and the dividend payout ratio is 16%.