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. MCY has an average financial health and profitability rating. MCY is not valued too expensively and it also shows a decent 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
- MCY has a Return On Assets of 4.69%. This is in the better half of the industry: MCY outperforms 79.87% of its industry peers.
- The Return On Equity of MCY (19.69%) is better than 86.58% of its industry peers.
- With an excellent Return On Invested Capital value of 5.71%, MCY belongs to the best of the industry, outperforming 83.22% of the companies in the same industry.
| 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 worse Operating Margin (9.74%) than 61.74% of its industry peers.
- In the last couple of years the Operating Margin of MCY has grown nicely.
| 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.
- The number of shares outstanding for MCY remains at a similar level compared to 5 years ago.
- MCY has a better debt/assets ratio than last year.
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.
- With an excellent Altman-Z score value of 1.50, MCY belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
- 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 79.19% 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.
- The Debt to Equity ratio of MCY (0.26) is better 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.
- With a decent Current ratio value of 0.12, MCY is doing good in the industry, outperforming 63.76% 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.
- MCY's Quick ratio of 0.12 is fine compared to the rest of the industry. MCY outperforms 63.76% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 22.56% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 6.18% in the past year.
- MCY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.63% yearly.
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.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- With a Price/Earnings ratio of 12.98, MCY is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of MCY is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, MCY is valued rather cheaply.
- MCY is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
- MCY's Price/Forward Earnings ratio is in line with the industry average.
- 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 66.44% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 71.81% of the companies listed 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%.
- Compared to an average industry Dividend Yield of 2.53, MCY has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.85, MCY is paying slightly less dividend.
| 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.
- The dividend of MCY decreased recently.
Dividend Growth(5Y)-12.76%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- MCY pays out 16.00% of its income as dividend. This is a 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%.