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MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis

USA - NYSE:MCY - US5894001008 - Common Stock

81.45 USD
-0.05 (-0.06%)
Last: 9/24/2025, 9:44:50 AM
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 an average financial health and profitability rating. MCY has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

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.
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

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 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.
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 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.
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.
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 1.43. 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 RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.7
Altman-Z 1.43
ROIC/WACC0.63
WACC8.32%
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

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 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.
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.
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

4

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 RankSector Rank
PE 14.29
Fwd PE 12.08
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

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 RankSector Rank
P/FCF 5.52
EV/EBITDA 7.13
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)0.63
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%

3

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 RankSector 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
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

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%
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 (9/24/2025, 9:44:50 AM)

81.45

-0.05 (-0.06%)

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 Cap4.51B
Analysts80
Price Target81.6 (0.18%)
Short Float %6.17%
Short Ratio6.34
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
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)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 RankSector 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 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 1.43
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%