MERCURY GENERAL CORP (MCY) Fundamental Analysis & Valuation

NYSE:MCY • US5894001008

Current stock price

96.47 USD
-1.17 (-1.2%)
At close:
96.47 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.
  • 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 82.31% of its industry peers.
  • The Return On Equity of MCY (22.38%) is better than 85.03% of its industry peers.
  • The Return On Invested Capital of MCY (6.22%) is better than 78.23% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCY is below the industry average of 9.55%.
  • The 3 year average ROIC (4.61%) for MCY is below the current ROIC(6.22%), indicating increased profibility in the last year.
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 of 9.03%. This is comparable to the rest of the industry: MCY outperforms 54.42% of its industry peers.
  • In the last couple of years the Profit Margin of MCY has declined.
  • Looking at the Operating Margin, with a value of 11.55%, MCY is in line with its industry, outperforming 47.62% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCY 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.
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

  • MCY has an Altman-Z score of 1.60. This is a bad value and indicates that MCY is not financially healthy and even has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.60, MCY belongs to the best of the industry, outperforming 86.39% 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.
  • With a decent Debt to FCF ratio value of 0.56, MCY is doing good in the industry, outperforming 75.51% 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 has a better Debt to Equity ratio (0.24) than 63.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Altman-Z 1.6
ROIC/WACC0.73
WACC8.47%
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 68.03% of its industry peers.
  • A Quick Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • MCY's Quick ratio of 0.18 is fine compared to the rest of the industry. MCY outperforms 68.03% 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.
  • MCY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.63% yearly.
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

  • MCY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.13% yearly.
  • 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.
  • 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

  • With a Price/Earnings ratio of 12.21, MCY is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCY is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.42. MCY is valued rather cheaply when compared to this.
  • MCY is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
  • 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 (22.29), we can say MCY is valued rather cheaply.
Industry RankSector Rank
PE 12.21
Fwd PE 10.61
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 71.43% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.19
EV/EBITDA 6.2
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.81
PEG (5Y)1.66
EPS Next 2Y1.13%
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 1.30%.
  • MCY's Dividend Yield is comparable with the industry average which is at 2.36.
  • Compared to the average S&P500 Dividend Yield of 1.81, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.3%

5.2 History

  • The dividend of MCY decreases each year by -12.81%.
  • MCY has been paying a dividend for at least 10 years, so it has 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

  • 13.00% of the earnings are spent on dividend by MCY. This is a low number and 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 (4/24/2026, 8:04:00 PM)

After market: 96.47 0 (0%)

96.47

-1.17 (-1.2%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-05
Inst Owners47.28%
Inst Owner Change0.18%
Ins Owners35.52%
Ins Owner Change0%
Market Cap5.34B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target112.2 (16.31%)
Short Float %6.64%
Short Ratio6.12
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
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 12.21
Fwd PE 10.61
P/S 0.89
P/FCF 5.19
P/OCF 4.91
P/B 2.21
P/tB 2.26
EV/EBITDA 6.2
EPS(TTM)7.9
EY8.19%
EPS(NY)9.09
Fwd EY9.42%
FCF(TTM)18.57
FCFY19.25%
OCF(TTM)19.63
OCFY20.35%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)0.81
PEG (5Y)1.66
Graham Number88.0749 (-8.7%)
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 1.6
F-Score6
WACC8.47%
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 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 5 / 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%.