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MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis

USA - NYSE:MCY - US5894001008 - Common Stock

79.51 USD
+0.2 (+0.25%)
Last: 9/19/2025, 8:04:00 PM
79.511 USD
0 (0%)
After Hours: 9/19/2025, 8:04:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MCY. MCY was compared to 146 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year MCY was profitable.
MCY had a positive operating cash flow in the past year.
Of the past 5 years MCY 4 years were profitable.
Each year in the past 5 years MCY had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

MCY's Return On Assets of 4.29% is amongst the best of the industry. MCY outperforms 80.82% of its industry peers.
Looking at the Return On Equity, with a value of 19.81%, MCY belongs to the top of the industry, outperforming 89.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.25%, MCY belongs to the top of the industry, outperforming 82.88% of the companies in the same industry.
Industry RankSector Rank
ROA 4.29%
ROE 19.81%
ROIC 5.25%
ROA(3y)-0.29%
ROA(5y)1.74%
ROE(3y)-1.14%
ROE(5y)5.32%
ROIC(3y)N/A
ROIC(5y)N/A
MCY Yearly ROA, ROE, ROICMCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 -30

1.3 Margins

The Profit Margin of MCY (6.76%) is comparable to the rest of the industry.
MCY's Profit Margin has been stable in the last couple of years.
MCY has a Operating Margin (8.75%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MCY has grown nicely.
Industry RankSector Rank
OM 8.75%
PM (TTM) 6.76%
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
MCY Yearly Profit, Operating, Gross MarginsMCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

5

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.
MCY has a better debt/assets ratio than last year.
MCY Yearly Shares OutstandingMCY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
MCY Yearly Total Debt VS Total AssetsMCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

Based on the Altman-Z score of 1.42, we must say that MCY is in the distress zone and has some risk of bankruptcy.
MCY has a better Altman-Z score (1.42) than 82.88% of its industry peers.
The Debt to FCF ratio of MCY is 0.70, which is an excellent value as it means it would take MCY, only 0.70 years of fcf income to pay off all of its debts.
MCY has a better Debt to FCF ratio (0.70) than 76.71% of its industry peers.
MCY has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MCY (0.29) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.7
Altman-Z 1.42
ROIC/WACC0.63
WACC8.3%
MCY Yearly LT Debt VS Equity VS FCFMCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
With a decent Current ratio value of 0.19, MCY is doing good in the industry, outperforming 67.12% of the companies in the same industry.
A Quick Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.19, MCY is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
MCY Yearly Current Assets VS Current LiabilitesMCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.02% over the past year.
Measured over the past years, MCY shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.56% on average per year.
Looking at the last year, MCY shows a quite strong growth in Revenue. The Revenue has grown by 14.93% in the last year.
The Revenue has been growing slightly by 6.63% on average over the past years.
EPS 1Y (TTM)37.02%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%144.95%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%13.25%

3.2 Future

MCY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.40% yearly.
MCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.10% yearly.
EPS Next Y-53.29%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
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.
MCY Yearly Revenue VS EstimatesMCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.95, MCY is valued correctly.
MCY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.38. MCY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.79 indicates a reasonable valuation of MCY.
MCY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MCY to the average of the S&P500 Index (22.86), we can say MCY is valued slightly cheaper.
Industry RankSector Rank
PE 13.95
Fwd PE 11.79
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

MCY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCY is cheaper than 65.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 71.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.39
EV/EBITDA 6.92
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 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.61%, MCY has a reasonable but not impressive dividend return.
MCY's Dividend Yield is comparable with the industry average which is at 3.43.
Compared to the average S&P500 Dividend Yield of 2.38, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.61%

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
MCY Yearly Dividends per shareMCY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

MCY pays out 18.03% 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.
DP18.03%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
MCY Yearly Income VS Free CF VS DividendMCY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M
MCY Dividend Payout.MCY Dividend Payout, showing the Payout Ratio.MCY Dividend Payout.PayoutRetained Earnings

MERCURY GENERAL CORP

NYSE:MCY (9/19/2025, 8:04:00 PM)

After market: 79.511 0 (0%)

79.51

+0.2 (+0.25%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-27 2025-10-27
Inst Owners49.84%
Inst Owner Change-8.24%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.40B
Analysts80
Price Target81.6 (2.63%)
Short Float %6.17%
Short Ratio6.34
Dividend
Industry RankSector Rank
Dividend Yield 1.61%
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date09-11 2025-09-11 (0.3175)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.23%
Min EPS beat(2)30.24%
Max EPS beat(2)60.22%
EPS beat(4)4
Avg EPS beat(4)71.04%
Min EPS beat(4)30.24%
Max EPS beat(4)145.76%
EPS beat(8)8
Avg EPS beat(8)249.9%
EPS beat(12)9
Avg EPS beat(12)155.98%
EPS beat(16)9
Avg EPS beat(16)61.22%
Revenue beat(2)1
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-6.45%
Max Revenue beat(2)2.99%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)10.74%
Revenue beat(8)4
Avg Revenue beat(8)1.99%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)7
Avg Revenue beat(16)-1.78%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)13.68%
EPS NY rev (3m)13.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.95
Fwd PE 11.79
P/S 0.76
P/FCF 5.39
P/OCF 5.07
P/B 2.24
P/tB 2.29
EV/EBITDA 6.92
EPS(TTM)5.7
EY7.17%
EPS(NY)6.74
Fwd EY8.48%
FCF(TTM)14.76
FCFY18.56%
OCF(TTM)15.69
OCFY19.74%
SpS104.14
BVpS35.56
TBVpS34.65
PEG (NY)N/A
PEG (5Y)0.62
Profitability
Industry RankSector Rank
ROA 4.29%
ROE 19.81%
ROCE 5.89%
ROIC 5.25%
ROICexc 6.05%
ROICexgc 6.56%
OM 8.75%
PM (TTM) 6.76%
GM N/A
FCFM 14.17%
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
ROICexcg growth 3Y17.76%
ROICexcg 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-Score7
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.7
Debt/EBITDA 1.03
Cap/Depr 100.86%
Cap/Sales 0.9%
Interest Coverage 17.29
Cash Conversion 156.35%
Profit Quality 209.59%
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 1.42
F-Score7
WACC8.3%
ROIC/WACC0.63
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)37.02%
EPS 3Y35.66%
EPS 5Y22.56%
EPS Q2Q%144.95%
EPS Next Y-53.29%
EPS Next 2Y-3.17%
EPS Next 3Y-1.4%
EPS Next 5YN/A
Revenue 1Y (TTM)14.93%
Revenue growth 3Y11.1%
Revenue growth 5Y6.63%
Sales Q2Q%13.25%
Revenue Next Year5.41%
Revenue Next 2Y6.5%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
EBIT growth 1Y21.22%
EBIT growth 3Y24.17%
EBIT growth 5Y8.92%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y262.38%
FCF growth 3Y29.13%
FCF growth 5Y15.62%
OCF growth 1Y230.42%
OCF growth 3Y27.4%
OCF growth 5Y14.82%