MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCY - US5894001008 - Common Stock
88.24 USD
-2.28 (-2.52%)
89.33 USD
+1.09 (+1.24%)
We assign a fundamental rating of 5 out of 10 to MCY. MCY was compared to 148 industry peers in the Insurance industry. MCY has an average financial health and profitability rating. MCY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MCY had positive earnings in the past year.
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.
1.2 Ratios
MCY's Return On Assets of 4.69% is amongst the best of the industry. MCY outperforms 80.41% of its industry peers.
Looking at the Return On Equity, with a value of 19.69%, MCY belongs to the top of the industry, outperforming 87.16% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.71%, MCY belongs to the best of the industry, outperforming 83.78% 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
With a Profit Margin value of 7.55%, MCY perfoms like the industry average, outperforming 46.62% of the companies in the same industry.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
MCY has a worse Operating Margin (9.74%) than 61.49% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MCY is destroying value.
MCY has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MCY has about the same amount of shares outstanding.
The debt/assets ratio for MCY has been reduced compared to a year ago.
2.2 Solvency
MCY has an Altman-Z score of 1.50. This is a bad value and indicates that MCY is not financially healthy and even has some risk of bankruptcy.
MCY has a better Altman-Z score (1.50) than 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.
MCY has a Debt to FCF ratio of 0.58. This is in the better half of the industry: MCY outperforms 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's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MCY outperforms 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.68
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.12 indicates that MCY may have some problems paying its short term obligations.
With a decent Current ratio value of 0.12, MCY is doing good in the industry, outperforming 64.19% of the companies in the same industry.
MCY has a Quick 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.
MCY has a Quick ratio of 0.12. This is in the better half of the industry: MCY outperforms 64.19% 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.
Looking at the last year, MCY shows a small growth in Revenue. The Revenue has grown by 6.18% in the last year.
MCY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.63% yearly.
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.
MCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
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 12.57, which indicates a correct valuation of MCY.
MCY's Price/Earnings is on the same level as the industry average.
MCY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 10.40, which indicates a very decent valuation of MCY.
MCY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, MCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
66.22% of the companies in the same industry are more expensive than MCY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 72.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y8.63%
EPS Next 3Y2.87%
5. Dividend
5.1 Amount
MCY has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
MCY's Dividend Yield is comparable with the industry average which is at 2.48.
MCY's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of MCY decreases each year by -12.76%.
MCY has been paying a dividend for at least 10 years, so it has a reliable track record.
MCY has decreased its dividend 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%
88.24
-2.28 (-2.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.23%
Inst Owner Change0%
Ins Owners35.51%
Ins Owner Change0%
Market Cap4.89B
Revenue(TTM)5.82B
Net Income(TTM)439.62M
Analysts84
Price Target102 (15.59%)
Short Float %6.74%
Short Ratio8.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP16%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.95%
EPS NY rev (1m)0%
EPS NY rev (3m)177.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 10.4 | ||
| P/S | 0.84 | ||
| P/FCF | 4.93 | ||
| P/OCF | 4.67 | ||
| P/B | 2.19 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 7 |
EPS(TTM)7.02
EY7.96%
EPS(NY)8.48
Fwd EY9.61%
FCF(TTM)17.89
FCFY20.27%
OCF(TTM)18.91
OCFY21.43%
SpS105.12
BVpS40.3
TBVpS39.4
PEG (NY)N/A
PEG (5Y)0.56
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 | 1.5 |
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.
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 12.57 and the Price/Book (PB) ratio is 2.19.
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 16%.