MERCURY GENERAL CORP (MCY)
US5894001008 - Common Stock
We assign a fundamental rating of 5 out of 10 to MCY. MCY was compared to 141 industry peers in the Insurance industry. MCY has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: MCY is growing strongly while it also seems undervalued.
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.
Of the past 5 years MCY 4 years were profitable.
MCY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MCY (6.85%) is better than 87.14% of its industry peers.
Looking at the Return On Equity, with a value of 29.98%, MCY belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Invested Capital of MCY (7.22%) is better than 87.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 29.98% | ||
| ROIC | 7.22% |
ROA(3y)-0.95%
ROA(5y)1.7%
ROE(3y)-5.29%
ROE(5y)4.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.18%, MCY is in line with its industry, outperforming 60.00% of the companies in the same industry.
MCY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 13.14%, MCY perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
In the last couple of years the Operating Margin of MCY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.14% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A |
OM growth 3Y-40.33%
OM growth 5YN/A
PM growth 3Y-40.54%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCY is destroying value.
Compared to 1 year ago, MCY has about the same amount of shares outstanding.
The number of shares outstanding for MCY remains at a similar level compared to 5 years ago.
The debt/assets ratio for MCY is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.60, MCY belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
MCY has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.59, MCY is doing good in the industry, outperforming 75.71% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that MCY is not too dependend on debt financing.
MCY has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.84
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.21 indicates that MCY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.21, MCY is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
A Quick Ratio of 0.21 indicates that MCY may have some problems paying its short term obligations.
MCY's Quick ratio of 0.21 is fine compared to the rest of the industry. MCY outperforms 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 341.74% over the past year.
MCY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.12% yearly.
Looking at the last year, MCY shows a very strong growth in Revenue. The Revenue has grown by 24.45%.
Measured over the past years, MCY shows a small growth in Revenue. The Revenue has been growing by 6.49% on average per year.
EPS 1Y (TTM)341.74%
EPS 3Y-62.17%
EPS 5Y-30.12%
EPS Q2Q%122.81%
Revenue 1Y (TTM)24.45%
Revenue growth 3Y6.95%
Revenue growth 5Y6.49%
Sales Q2Q%43.67%
3.2 Future
Based on estimates for the next years, MCY will show a very strong growth in Earnings Per Share. The EPS will grow by 186.70% on average per year.
The Revenue is expected to grow by 11.44% on average over the next years. This is quite good.
EPS Next Y1978.92%
EPS Next 2Y383.72%
EPS Next 3Y186.7%
EPS Next 5YN/A
Revenue Next Year24.78%
Revenue Next 2Y15.06%
Revenue Next 3Y11.44%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MCY is valuated correctly with a Price/Earnings ratio of 12.26.
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 27.73. MCY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.71 indicates a reasonable valuation of MCY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 61.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MCY to the average of the S&P500 Index (22.83), we can say MCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 9.71 |
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 79.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MCY is valued a bit cheaper than 76.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.89 | ||
| EV/EBITDA | 4.99 |
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.
MCY's earnings are expected to grow with 186.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y383.72%
EPS Next 3Y186.7%
5. Dividend
5.1 Amount
MCY has a Yearly Dividend Yield of 1.86%.
Compared to an average industry Dividend Yield of 4.33, MCY has a dividend in line with its industry peers.
MCY's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of MCY decreases each year by -12.70%.
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)-12.7%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MCY pays out 12.60% of its income as dividend. This is a sustainable payout ratio.
DP12.6%
EPS Next 2Y383.72%
EPS Next 3Y186.7%
MERCURY GENERAL CORP
NYSE:MCY (12/20/2024, 8:23:49 PM)
After market: 68.19 0 (0%)68.19
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners43.78%
Inst Owner Change-0.91%
Ins Owners35.5%
Ins Owner Change-0.01%
Market Cap3.78B
Analysts76.67
Price Target81.6 (19.67%)
Short Float %3.02%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)-12.7%
DP12.6%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.42%
Min EPS beat(2)34.9%
Max EPS beat(2)47.93%
EPS beat(4)4
Avg EPS beat(4)271.14%
Min EPS beat(4)34.9%
Max EPS beat(4)517.82%
EPS beat(8)5
Avg EPS beat(8)178.08%
EPS beat(12)6
Avg EPS beat(12)63.67%
EPS beat(16)8
Avg EPS beat(16)52.8%
Revenue beat(2)1
Avg Revenue beat(2)4.06%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)10.74%
Revenue beat(4)3
Avg Revenue beat(4)6.88%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)17.29%
Revenue beat(8)5
Avg Revenue beat(8)4.33%
Revenue beat(12)6
Avg Revenue beat(12)-1.64%
Revenue beat(16)9
Avg Revenue beat(16)0.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)115.85%
EPS NY rev (1m)0%
EPS NY rev (3m)23.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.69 | ||
| P/FCF | 3.89 | ||
| P/OCF | 3.72 | ||
| P/B | 2.03 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)5.56
EY8.15%
EPS(NY)7.02
Fwd EY10.29%
FCF(TTM)17.53
FCFY25.7%
OCF(TTM)18.31
OCFY26.86%
SpS99.04
BVpS33.63
TBVpS32.72
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 29.98% | ||
| ROCE | 9.14% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.83% | ||
| ROICexgc | 8.08% | ||
| OM | 13.14% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A | ||
| FCFM | 17.7% |
ROA(3y)-0.95%
ROA(5y)1.7%
ROE(3y)-5.29%
ROE(5y)4.07%
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 3Y-38.37%
ROICexcg growth 5YN/A
ROICexc growth 3Y-38.37%
ROICexc growth 5YN/A
OM growth 3Y-40.33%
OM growth 5YN/A
PM growth 3Y-40.54%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 161.25% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 23.79 | ||
| Cash Conversion | 135.68% | ||
| Profit Quality | 173.83% | ||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 1.6 |
F-Score8
WACC8.58%
ROIC/WACC0.84
Cap/Depr(3y)63.65%
Cap/Depr(5y)69.99%
Cap/Sales(3y)0.94%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)341.74%
EPS 3Y-62.17%
EPS 5Y-30.12%
EPS Q2Q%122.81%
EPS Next Y1978.92%
EPS Next 2Y383.72%
EPS Next 3Y186.7%
EPS Next 5YN/A
Revenue 1Y (TTM)24.45%
Revenue growth 3Y6.95%
Revenue growth 5Y6.49%
Sales Q2Q%43.67%
Revenue Next Year24.78%
Revenue Next 2Y15.06%
Revenue Next 3Y11.44%
Revenue Next 5YN/A
EBIT growth 1Y633.62%
EBIT growth 3Y-36.18%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y202.33%
FCF growth 3Y-9.72%
FCF growth 5Y3.21%
OCF growth 1Y182.87%
OCF growth 3Y-9.22%
OCF growth 5Y3.39%