MERCURY GENERAL CORP (MCY) Fundamental Analysis & Valuation

NYSE:MCY • US5894001008

Current stock price

92.21 USD
-1.89 (-2.01%)
At close:
92.21 USD
0 (0%)
After Hours:

This MCY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. MCY Profitability Analysis

1.1 Basic Checks

  • In the past year MCY was profitable.
  • In the past year MCY had a positive cash flow from operations.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • The Return On Assets of MCY (5.66%) is better than 82.43% of its industry peers.
  • MCY has a better Return On Equity (22.38%) than 85.81% of its industry peers.
  • MCY has a Return On Invested Capital of 6.22%. This is in the better half of the industry: MCY outperforms 78.38% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCY is below the industry average of 9.50%.
  • The last Return On Invested Capital (6.22%) for MCY is above the 3 year average (4.61%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.66%
ROE 22.38%
ROIC 6.22%
ROA(3y)4.22%
ROA(5y)1.69%
ROE(3y)17.55%
ROE(5y)6.11%
ROIC(3y)4.61%
ROIC(5y)N/A
MCY Yearly ROA, ROE, ROICMCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • MCY has a Profit Margin (9.03%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of MCY has declined.
  • MCY has a Operating Margin (11.55%) which is in line with its industry peers.
  • MCY's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.55%
PM (TTM) 9.03%
GM N/A
OM growth 3YN/A
OM growth 5Y-1.67%
PM growth 3YN/A
PM growth 5Y-1.82%
GM growth 3YN/A
GM growth 5YN/A
MCY Yearly Profit, Operating, Gross MarginsMCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

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5

2. MCY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MCY is destroying value.
  • Compared to 1 year ago, MCY has about the same amount of shares outstanding.
  • The number of shares outstanding for MCY remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, MCY has an improved debt to assets ratio.
MCY Yearly Shares OutstandingMCY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
MCY Yearly Total Debt VS Total AssetsMCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 1.58, we must say that MCY is in the distress zone and has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.58, MCY belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
  • MCY has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
  • MCY has a Debt to FCF ratio of 0.56. This is in the better half of the industry: MCY outperforms 75.68% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that MCY is not too dependend on debt financing.
  • The Debt to Equity ratio of MCY (0.24) is better than 63.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Altman-Z 1.58
ROIC/WACC0.74
WACC8.45%
MCY Yearly LT Debt VS Equity VS FCFMCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • MCY has a Current Ratio of 0.18. 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 Current ratio of 0.18. This is in the better half of the industry: MCY outperforms 68.24% of its industry peers.
  • A Quick Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • The Quick ratio of MCY (0.18) is better than 68.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.18
Quick Ratio 0.18
MCY Yearly Current Assets VS Current LiabilitesMCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MCY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.87% over the past year.
  • MCY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.36% yearly.
  • The Revenue has grown by 9.44% in the past year. This is quite good.
  • Measured over the past years, MCY shows a quite strong growth in Revenue. The Revenue has been growing by 9.63% on average per year.
EPS 1Y (TTM)9.87%
EPS 3YN/A
EPS 5Y7.36%
EPS Q2Q%31.65%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y18.04%
Revenue growth 5Y9.63%
Sales Q2Q%12.41%

3.2 Future

  • The Earnings Per Share is expected to grow by 1.13% on average over the next years.
  • The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y15.06%
EPS Next 2Y1.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.55%
Revenue Next 2Y5.07%
Revenue Next 3YN/A
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MCY Yearly Revenue VS EstimatesMCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6 8

More info and screens

Find the best growth stocksShow best growing peers

6

4. MCY Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.67, the valuation of MCY can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCY is on the same level as its industry peers.
  • MCY is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • MCY is valuated reasonably with a Price/Forward Earnings ratio of 10.14.
  • 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 (37.39), we can say MCY is valued rather cheaply.
Industry RankSector Rank
PE 11.67
Fwd PE 10.14
MCY Price Earnings VS Forward Price EarningsMCY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MCY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCY is cheaper than 72.97% of the companies 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 66.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.96
EV/EBITDA 5.88
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's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.77
PEG (5Y)1.59
EPS Next 2Y1.13%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. MCY Dividend Analysis

5.1 Amount

  • MCY has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
  • MCY's Dividend Yield is comparable with the industry average which is at 2.44.
  • Compared to the average S&P500 Dividend Yield of 1.82, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

  • The dividend of MCY decreases each year by -12.81%.
  • MCY has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of MCY decreased in the last 3 years.
Dividend Growth(5Y)-12.81%
Div Incr Years0
Div Non Decr Years2
MCY Yearly Dividends per shareMCY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MCY pays out 13.00% of its income as dividend. This is a sustainable payout ratio.
DP13%
EPS Next 2Y1.13%
EPS Next 3YN/A
MCY Yearly Income VS Free CF VS DividendMCY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
MCY Dividend Payout.MCY Dividend Payout, showing the Payout Ratio.MCY Dividend Payout.PayoutRetained Earnings

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MCY Fundamentals: All Metrics, Ratios and Statistics

MERCURY GENERAL CORP

NYSE:MCY (4/10/2026, 8:04:00 PM)

After market: 92.21 0 (0%)

92.21

-1.89 (-2.01%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-05
Inst Owners47.28%
Inst Owner Change0.01%
Ins Owners35.52%
Ins Owner Change0%
Market Cap5.11B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target112.2 (21.68%)
Short Float %6.5%
Short Ratio5.83
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend1.27
Dividend Growth(5Y)-12.81%
DP13%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-12
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.66%
Min EPS beat(2)41.55%
Max EPS beat(2)77.76%
EPS beat(4)4
Avg EPS beat(4)52.44%
Min EPS beat(4)30.24%
Max EPS beat(4)77.76%
EPS beat(8)8
Avg EPS beat(8)119.52%
EPS beat(12)10
Avg EPS beat(12)173.25%
EPS beat(16)11
Avg EPS beat(16)79.13%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)0.77%
Max Revenue beat(2)5.66%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)5.66%
Revenue beat(8)5
Avg Revenue beat(8)1.23%
Revenue beat(12)7
Avg Revenue beat(12)2.22%
Revenue beat(16)8
Avg Revenue beat(16)-1.54%
PT rev (1m)10%
PT rev (3m)10%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 11.67
Fwd PE 10.14
P/S 0.85
P/FCF 4.96
P/OCF 4.7
P/B 2.11
P/tB 2.16
EV/EBITDA 5.88
EPS(TTM)7.9
EY8.57%
EPS(NY)9.09
Fwd EY9.86%
FCF(TTM)18.57
FCFY20.14%
OCF(TTM)19.63
OCFY21.29%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)0.77
PEG (5Y)1.59
Graham Number88.07
Profitability
Industry RankSector Rank
ROA 5.66%
ROE 22.38%
ROCE 7.63%
ROIC 6.22%
ROICexc 7.27%
ROICexgc 7.55%
OM 11.55%
PM (TTM) 9.03%
GM N/A
FCFM 17.17%
ROA(3y)4.22%
ROA(5y)1.69%
ROE(3y)17.55%
ROE(5y)6.11%
ROIC(3y)4.61%
ROIC(5y)N/A
ROICexc(3y)5.2%
ROICexc(5y)N/A
ROICexgc(3y)5.38%
ROICexgc(5y)N/A
ROCE(3y)5.65%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y1.58%
ROICexc growth 3YN/A
ROICexc growth 5Y1.48%
OM growth 3YN/A
OM growth 5Y-1.67%
PM growth 3YN/A
PM growth 5Y-1.82%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Debt/EBITDA 0.77
Cap/Depr 115.48%
Cap/Sales 0.98%
Interest Coverage 24.58
Cash Conversion 146.35%
Profit Quality 190.13%
Current Ratio 0.18
Quick Ratio 0.18
Altman-Z 1.58
F-Score6
WACC8.45%
ROIC/WACC0.74
Cap/Depr(3y)113.98%
Cap/Depr(5y)90.17%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.92%
Profit Quality(3y)277.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.87%
EPS 3YN/A
EPS 5Y7.36%
EPS Q2Q%31.65%
EPS Next Y15.06%
EPS Next 2Y1.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.44%
Revenue growth 3Y18.04%
Revenue growth 5Y9.63%
Sales Q2Q%12.41%
Revenue Next Year4.55%
Revenue Next 2Y5.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y14.29%
EBIT growth 3YN/A
EBIT growth 5Y7.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.81%
FCF growth 3Y48.04%
FCF growth 5Y12.71%
OCF growth 1Y4.83%
OCF growth 3Y45.55%
OCF growth 5Y12.41%

MERCURY GENERAL CORP / MCY Fundamental Analysis 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 6 / 10 to MERCURY GENERAL CORP (MCY). This can be considered as Fairly Valued.


Can you provide the profitability details for MERCURY GENERAL CORP?

MERCURY GENERAL CORP (MCY) has a profitability rating of 5 / 10.


Can you provide the financial health for MCY stock?

The financial health rating of MERCURY GENERAL CORP (MCY) is 5 / 10.


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 13%.