MERCURY GENERAL CORP (MCY) Fundamental Analysis & Valuation

NYSE:MCY • US5894001008

Current stock price

86.83 USD
-1.13 (-1.28%)
At close:
86.83 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.
  • MCY had a positive operating cash flow in the past year.
  • MCY had positive earnings in 4 of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • MCY has a Return On Assets of 5.66%. This is amongst the best in the industry. MCY outperforms 81.76% of its industry peers.
  • With an excellent Return On Equity value of 22.38%, MCY belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
  • MCY has a better Return On Invested Capital (6.22%) than 80.41% of its industry peers.
  • MCY had an Average Return On Invested Capital over the past 3 years of 4.61%. This is below the industry average of 9.34%.
  • 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

  • With a Profit Margin value of 9.03%, MCY perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
  • MCY's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 11.55%, MCY is in line with its industry, outperforming 46.62% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MCY has declined.
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.
  • MCY has about the same amout of shares outstanding than it did 5 years ago.
  • MCY has a better debt/assets ratio than last year.
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 1.56, we must say that MCY is in the distress zone and has some risk of bankruptcy.
  • MCY has a Altman-Z score of 1.56. This is amongst the best in the industry. MCY outperforms 86.49% of its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 0.56, MCY is doing good in the industry, outperforming 76.35% of the companies in the same industry.
  • A Debt/Equity ratio of 0.24 indicates that MCY is not too dependend on debt financing.
  • MCY's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. MCY outperforms 63.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Altman-Z 1.56
ROIC/WACC0.73
WACC8.49%
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

  • A Current Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • With a decent Current ratio value of 0.18, MCY is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • A Quick Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.18, MCY is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
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.
  • Looking at the last year, MCY shows a quite strong growth in Revenue. The Revenue has grown by 9.44% in the last year.
  • 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 decrease by -0.46% on average over the next years.
  • MCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y7.39%
EPS Next 2Y-0.46%
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

  • 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 decreasing.
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

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5

4. MCY Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.99 indicates a reasonable valuation of MCY.
  • MCY's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, MCY is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.23 indicates a reasonable valuation of MCY.
  • MCY's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of MCY to the average of the S&P500 Index (22.42), we can say MCY is valued rather cheaply.
Industry RankSector Rank
PE 10.99
Fwd PE 10.23
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

  • Based on the Enterprise Value to EBITDA ratio, MCY is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 67.57% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.68
EV/EBITDA 5.48
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.49
PEG (5Y)1.49
EPS Next 2Y-0.46%
EPS Next 3YN/A

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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 1.44%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.84, MCY has a dividend in line with its industry peers.
  • MCY's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.44%

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.
  • MCY has decreased its dividend recently.
Dividend Growth(5Y)-12.81%
Div Incr Years0
Div Non Decr Years1
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.
  • The Dividend Rate of MCY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP13%
EPS Next 2Y-0.46%
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 (3/20/2026, 8:07:41 PM)

After market: 86.83 0 (0%)

86.83

-1.13 (-1.28%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-04
Inst Owners47.36%
Inst Owner Change-0.6%
Ins Owners35.52%
Ins Owner Change0%
Market Cap4.81B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target102 (17.47%)
Short Float %6.48%
Short Ratio6.09
Dividend
Industry RankSector Rank
Dividend Yield 1.44%
Yearly Dividend1.27
Dividend Growth(5Y)-12.81%
DP13%
Div Incr Years0
Div Non Decr Years1
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 10.99
Fwd PE 10.23
P/S 0.8
P/FCF 4.68
P/OCF 4.42
P/B 1.99
P/tB 2.03
EV/EBITDA 5.48
EPS(TTM)7.9
EY9.1%
EPS(NY)8.48
Fwd EY9.77%
FCF(TTM)18.57
FCFY21.39%
OCF(TTM)19.63
OCFY22.6%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)1.49
PEG (5Y)1.49
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 1.56
F-Score6
WACC8.49%
ROIC/WACC0.73
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 Y7.39%
EPS Next 2Y-0.46%
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 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 10.99 and the Price/Book (PB) ratio is 1.99.


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%.