MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
89.465 USD
-2.05 (-2.25%)
We assign a fundamental rating of 5 out of 10 to MCY. MCY was compared to 148 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.
MCY had positive earnings in 4 of the past 5 years.
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 79.05% of its industry peers.
With an excellent Return On Equity value of 19.69%, MCY belongs to the best of the industry, outperforming 85.81% of the companies in the same industry.
MCY's Return On Invested Capital of 5.71% is amongst the best of the industry. MCY outperforms 83.78% 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 45.27% of its industry peers.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
The Operating Margin of MCY (9.74%) is worse than 61.49% 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.
Compared to 5 years ago, MCY has about the same amount of shares outstanding.
Compared to 1 year ago, MCY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that MCY is in the distress zone and has some risk of bankruptcy.
MCY has a Altman-Z score of 1.51. This is amongst the best in the industry. MCY outperforms 83.78% 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.
MCY has a Debt to FCF ratio of 0.58. This is in the better half of the industry: MCY outperforms 78.38% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MCY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, MCY is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.69
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
MCY has a better Current ratio (0.12) than 62.84% of its industry peers.
A Quick Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
MCY's Quick ratio of 0.12 is fine compared to the rest of the industry. MCY outperforms 62.84% 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
Looking at the last year, MCY shows a small growth in Revenue. The Revenue has grown by 6.18% in the last 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
MCY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.43% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.74 indicates a correct valuation of MCY.
MCY's Price/Earnings is on the same level as the industry average.
MCY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 11.97, the valuation of MCY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCY is on the same level as its industry peers.
MCY is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
MCY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCY is cheaper than 64.19% 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 70.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y1.96%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, MCY has a reasonable but not impressive dividend return.
MCY's Dividend Yield is comparable with the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.32, MCY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
MCY pays out 16.00% of its income as dividend. This is a sustainable payout ratio.
DP16%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
NYSE:MCY (12/3/2025, 1:42:45 PM)
89.465
-2.05 (-2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change-0.34%
Ins Owners35.51%
Ins Owner Change0%
Market Cap4.96B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (14.01%)
Short Float %7.33%
Short Ratio8.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)29.95%
EPS NQ rev (3m)76.55%
EPS NY rev (1m)0%
EPS NY rev (3m)35.34%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.85 | ||
| P/FCF | 5 | ||
| P/OCF | 4.73 | ||
| P/B | 2.22 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)7.02
EY7.85%
EPS(NY)7.47
Fwd EY8.35%
FCF(TTM)17.89
FCFY20%
OCF(TTM)18.91
OCFY21.14%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.56
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 | 1.51 |
F-Score4
WACC8.31%
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 4 / 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.
Can you provide the PE and PB ratios for MCY stock?
The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 12.74 and the Price/Book (PB) ratio is 2.22.
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%.