MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
90.36 USD
+0.67 (+0.75%)
90.36 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. 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.
Each year in the past 5 years MCY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.69%, MCY belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
With an excellent Return On Equity value of 19.69%, MCY belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
MCY has a better Return On Invested Capital (5.71%) than 83.56% 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 (7.55%) which is comparable to the rest of the industry.
MCY's Profit Margin has been stable in the last couple of years.
MCY has a Operating Margin of 9.74%. This is in the lower half of the industry: MCY underperforms 60.96% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCY is destroying value.
The number of shares outstanding for MCY remains at a similar level compared to 1 year ago.
MCY has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, MCY has an improved debt to assets ratio.
2.2 Solvency
MCY has an Altman-Z score of 1.50. This is a bad value and indicates that MCY is not financially healthy and even has some risk of bankruptcy.
MCY's Altman-Z score of 1.50 is amongst the best of the industry. MCY outperforms 84.93% of its industry peers.
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.
MCY has a Debt to FCF ratio of 0.58. This is in the better half of the industry: MCY outperforms 78.77% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MCY is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.26, MCY is doing good in the industry, outperforming 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.68
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
With a decent Current ratio value of 0.12, MCY is doing good in the industry, outperforming 65.07% of the companies in the same industry.
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 65.07% 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.
The Revenue has been growing slightly by 6.18% in the past year.
The Revenue has been growing slightly by 6.63% on average over the past years.
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
The Earnings Per Share is expected to grow by 2.87% on average over the next years.
Based on estimates for the next years, MCY will show a small growth in Revenue. The Revenue will grow by 6.18% on average per year.
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.
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
Based on the Price/Earnings ratio of 12.87, the valuation of MCY can be described as correct.
MCY's Price/Earnings ratio is in line with the industry average.
MCY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 10.65, the valuation of MCY can be described as very reasonable.
MCY's Price/Forward Earnings ratio is in line with the industry average.
MCY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 10.65 |
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.
MCY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCY is cheaper than 71.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.05 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y8.63%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, MCY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, MCY has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, MCY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
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%
90.36
+0.67 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.23%
Inst Owner Change0.08%
Ins Owners35.51%
Ins Owner Change0%
Market Cap5.01B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (12.88%)
Short Float %6.74%
Short Ratio8.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 | 12.87 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.86 | ||
| P/FCF | 5.05 | ||
| P/OCF | 4.78 | ||
| P/B | 2.24 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)7.02
EY7.77%
EPS(NY)8.48
Fwd EY9.39%
FCF(TTM)17.89
FCFY19.8%
OCF(TTM)18.91
OCFY20.93%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.57
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
WACC8.39%
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 12.87 and the Price/Book (PB) ratio is 2.24.
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%.