MERCURY GENERAL CORP (MCY) Stock Fundamental Analysis
USA - NYSE:MCY - US5894001008 - Common Stock
76.24 USD
-1.06 (-1.37%)
Overall MCY gets a fundamental rating of 5 out of 10. We evaluated MCY against 146 industry peers in the Insurance industry. MCY has an average financial health and profitability rating. MCY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MCY was profitable.
In the past year MCY had a positive cash flow from operations.
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.
1.2 Ratios
MCY has a better Return On Assets (4.29%) than 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.
The Return On Invested Capital of MCY (5.25%) is better than 82.19% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
MCY's Profit Margin of 6.76% is in line compared to the rest of the industry. MCY outperforms 44.52% of its industry peers.
In the last couple of years the Profit Margin of MCY has remained more or less at the same level.
MCY's Operating Margin of 8.75% is on the low side compared to the rest of the industry. MCY is outperformed by 60.96% of its industry peers.
MCY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
MCY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that MCY is in the distress zone and has some risk of bankruptcy.
MCY's Altman-Z score of 1.41 is amongst the best of the industry. MCY outperforms 82.88% of its industry peers.
MCY has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
MCY has a Debt to FCF ratio of 0.70. This is in the better half of the industry: MCY outperforms 77.40% 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.
MCY's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. MCY outperforms 56.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.64
WACC8.26%
2.3 Liquidity
MCY has a Current Ratio of 0.19. This is a bad value and indicates that MCY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MCY (0.19) is better than 67.81% of its industry peers.
A Quick Ratio of 0.19 indicates that MCY may have some problems paying its short term obligations.
The Quick ratio of MCY (0.19) is better than 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
MCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.02%, which is quite impressive.
The Earnings Per Share has been growing by 22.56% on average over the past years. This is a very strong growth
MCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.93%.
MCY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.63% yearly.
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
Based on estimates for the next years, MCY will show a small growth in Earnings Per Share. The EPS will grow by 2.43% on average per year.
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-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.38 indicates a correct valuation of MCY.
MCY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MCY to the average of the S&P500 Index (26.11), we can say MCY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.20, the valuation of MCY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCY is on the same level as its industry peers.
MCY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCY is valued a bit cheaper than 66.44% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCY indicates a somewhat cheap valuation: MCY is cheaper than 71.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.17 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y1.96%
EPS Next 3Y2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, MCY has a reasonable but not impressive dividend return.
MCY's Dividend Yield is comparable with the industry average which is at 3.27.
Compared to the average S&P500 Dividend Yield of 2.37, MCY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
5.3 Sustainability
MCY pays out 18.03% of its income as dividend. This is a sustainable payout ratio.
DP18.03%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
NYSE:MCY (11/3/2025, 11:16:15 AM)
76.24
-1.06 (-1.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.62%
Inst Owner Change0.32%
Ins Owners35.51%
Ins Owner Change0.08%
Market Cap4.22B
Revenue(TTM)5.77B
Net Income(TTM)390.07M
Analysts84
Price Target102 (33.79%)
Short Float %6.71%
Short Ratio8.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.27
Dividend Growth(5Y)-12.76%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)25%
PT rev (3m)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.5%
EPS NY rev (1m)83.67%
EPS NY rev (3m)53.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.73 | ||
| P/FCF | 5.17 | ||
| P/OCF | 4.86 | ||
| P/B | 2.14 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)5.7
EY7.48%
EPS(NY)7.47
Fwd EY9.8%
FCF(TTM)14.76
FCFY19.36%
OCF(TTM)15.69
OCFY20.59%
SpS104.14
BVpS35.56
TBVpS34.65
PEG (NY)N/A
PEG (5Y)0.59
Graham Number67.53
Profitability
| Industry Rank | Sector 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
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-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector 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 | 1.41 |
F-Score7
WACC8.26%
ROIC/WACC0.64
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-36.79%
EPS Next 2Y1.96%
EPS Next 3Y2.43%
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%
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.
What is the valuation status of MERCURY GENERAL CORP (MCY) stock?
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 6 / 10.
Can you provide the PE and PB ratios for MCY stock?
The Price/Earnings (PE) ratio for MERCURY GENERAL CORP (MCY) is 13.38 and the Price/Book (PB) ratio is 2.14.
How sustainable is the dividend of MERCURY GENERAL CORP (MCY) stock?
The dividend rating of MERCURY GENERAL CORP (MCY) is 3 / 10 and the dividend payout ratio is 18.03%.