MERCURY GENERAL CORP (MCY) Fundamental Analysis & Valuation

NYSE:MCY • US5894001008

Current stock price

96.91 USD
-0.73 (-0.75%)
Last:

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

  • MCY had positive earnings in the past year.
  • In the past year MCY had a positive cash flow from operations.
  • Of the past 5 years MCY 4 years were profitable.
  • 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

  • Looking at the Return On Assets, with a value of 5.66%, MCY belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
  • MCY has a better Return On Equity (22.38%) 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.
  • MCY had an Average Return On Invested Capital over the past 3 years of 4.61%. This is below the industry average of 9.51%.
  • 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's Profit Margin of 9.03% is in line compared to the rest of the industry. MCY outperforms 54.42% of its industry peers.
  • 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 47.62% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. MCY Health Analysis

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.
  • The number of shares outstanding for MCY remains at a similar level compared to 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

  • Based on the Altman-Z score of 1.61, we must say that MCY is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of MCY (1.61) is better than 86.39% 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.
  • The Debt to FCF ratio of MCY (0.56) is better than 75.51% of its industry peers.
  • MCY has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • 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 1.61
ROIC/WACC0.74
WACC8.46%
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 better Current ratio (0.18) than 68.03% of its industry peers.
  • MCY has a Quick 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.
  • Looking at the Quick ratio, with a value of 0.18, MCY is in the better half of the industry, outperforming 68.03% 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

  • MCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.87%, which is quite good.
  • 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

  • Based on estimates for the next years, MCY will show a small growth in Earnings Per Share. The EPS will grow by 1.13% on average per year.
  • Based on estimates for the next years, MCY will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
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

  • 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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Find the best growth stocksShow best growing peers

5

4. MCY Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.27 indicates a correct valuation of MCY.
  • 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 27.47, which is the current average of the S&P500 Index.
  • MCY is valuated reasonably with a Price/Forward Earnings ratio of 10.66.
  • MCY's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.62. MCY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.27
Fwd PE 10.66
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

  • 71.43% of the companies in the same industry are more expensive than MCY, based on the Enterprise Value to EBITDA ratio.
  • MCY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCY is cheaper than 65.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.22
EV/EBITDA 6.28
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)0.81
PEG (5Y)1.67
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 1.34%. Purely for dividend investing, there may be better candidates out there.
  • MCY's Dividend Yield is comparable with the industry average which is at 2.37.
  • Compared to the average S&P500 Dividend Yield of 1.81, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.34%

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 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

More info and screens

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MCY Fundamentals: All Metrics, Ratios and Statistics

MERCURY GENERAL CORP

NYSE:MCY (4/24/2026, 10:25:16 AM)

96.91

-0.73 (-0.75%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-05
Inst Owners47.28%
Inst Owner Change0.05%
Ins Owners35.52%
Ins Owner Change0%
Market Cap5.37B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target112.2 (15.78%)
Short Float %6.64%
Short Ratio6.12
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
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 12.27
Fwd PE 10.66
P/S 0.9
P/FCF 5.22
P/OCF 4.94
P/B 2.22
P/tB 2.27
EV/EBITDA 6.28
EPS(TTM)7.9
EY8.15%
EPS(NY)9.09
Fwd EY9.38%
FCF(TTM)18.57
FCFY19.17%
OCF(TTM)19.63
OCFY20.25%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)0.81
PEG (5Y)1.67
Graham Number88.0749 (-9.12%)
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 1.61
F-Score6
WACC8.46%
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 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%.