MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
93.95 USD
-0.71 (-0.75%)
93.95 USD
0 (0%)
MCY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. Both the profitability and the financial health of MCY get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
MCY has a Return On Assets of 4.69%. This is in the better half of the industry: MCY outperforms 79.73% of its industry peers.
With an excellent Return On Equity value of 19.69%, MCY belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.71%, MCY belongs to the top of the industry, outperforming 83.11% 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
The Profit Margin of MCY (7.55%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
MCY's Operating Margin of 9.74% is on the low side compared to the rest of the industry. MCY is outperformed by 62.16% 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
MCY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MCY has about the same amout of shares outstanding than it did 1 year ago.
MCY has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for MCY has been reduced compared to a year ago.
2.2 Solvency
MCY has an Altman-Z score of 1.52. 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 1.52 is amongst the best of the industry. MCY outperforms 84.46% 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.
The Debt to FCF ratio of MCY (0.58) is better than 79.05% of its industry peers.
MCY has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MCY has a better Debt to Equity ratio (0.26) than 61.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.68
WACC8.37%
2.3 Liquidity
MCY has a Current 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.
With a decent Current ratio value of 0.12, MCY is doing good in the industry, outperforming 62.84% of the companies in the same industry.
A Quick Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
The Quick ratio of MCY (0.12) is better than 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.
MCY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.56% yearly.
MCY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.18%.
Measured over the past years, MCY shows a small growth in Revenue. The Revenue has been growing by 6.63% on average per year.
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 2.87% yearly.
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
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
The Price/Earnings ratio is 13.38, which indicates a correct valuation of MCY.
The rest of the industry has a similar Price/Earnings ratio as MCY.
When comparing the Price/Earnings ratio of MCY to the average of the S&P500 Index (26.57), we can say MCY is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.07 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 (24.04), we can say MCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 11.07 |
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 64.19% of the companies listed in the same industry.
MCY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCY is cheaper than 71.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.25 | ||
| EV/EBITDA | 7.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y8.63%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
MCY has a Yearly Dividend Yield of 1.34%.
MCY's Dividend Yield is comparable with the industry average which is at 2.30.
Compared to the average S&P500 Dividend Yield of 1.88, MCY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
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%
93.95
-0.71 (-0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.18%
Inst Owner Change-0.34%
Ins Owners35.51%
Ins Owner Change0%
Market Cap5.20B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (8.57%)
Short Float %7.11%
Short Ratio9.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)0%
EPS NQ rev (3m)76.55%
EPS NY rev (1m)51.11%
EPS NY rev (3m)104.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)2.71%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 11.07 | ||
| P/S | 0.89 | ||
| P/FCF | 5.25 | ||
| P/OCF | 4.97 | ||
| P/B | 2.33 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)7.02
EY7.47%
EPS(NY)8.48
Fwd EY9.03%
FCF(TTM)17.89
FCFY19.04%
OCF(TTM)18.91
OCFY20.13%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.59
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 | 1.52 |
F-Score4
WACC8.37%
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.
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 13.38 and the Price/Book (PB) ratio is 2.33.
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%.