MERCURY GENERAL CORP (MCY) Fundamental Analysis & Valuation

NYSE:MCY • US5894001008

Current stock price

88.96 USD
+1.38 (+1.58%)
At close:
88.96 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

  • 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.
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

  • With an excellent Return On Assets value of 5.66%, MCY belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
  • The Return On Equity of MCY (22.38%) is better than 87.84% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.22%, MCY belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCY is significantly below the industry average of 15.25%.
  • 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 (9.03%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of MCY has declined.
  • MCY has a Operating Margin of 11.55%. This is comparable to the rest of the industry: MCY outperforms 47.30% of its industry peers.
  • 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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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 1.57, we must say that MCY is in the distress zone and has some risk of bankruptcy.
  • MCY has a better Altman-Z score (1.57) than 88.51% of its industry peers.
  • The Debt to FCF ratio of MCY is 0.56, which is an excellent value as it means it would take MCY, only 0.56 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.56, MCY is in the better half of the industry, outperforming 77.70% of the companies in the same industry.
  • MCY has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.24, MCY is doing good in the industry, outperforming 64.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.56
Altman-Z 1.57
ROIC/WACC0.74
WACC8.4%
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

  • A Current Ratio of 0.18 indicates that MCY may have some problems paying its short term obligations.
  • MCY has a Current ratio of 0.18. This is in the better half of the industry: MCY outperforms 68.24% 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.
  • MCY has a better Quick ratio (0.18) than 68.24% 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

  • 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

  • MCY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.46% yearly.
  • The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y7.39%
EPS Next 2Y-0.46%
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 11.26, the valuation of MCY can be described as very reasonable.
  • 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 (25.70), we can say MCY is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 10.49, the valuation of MCY can be described as very reasonable.
  • MCY's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. MCY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.26
Fwd PE 10.49
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

  • 72.97% 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 68.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.79
EV/EBITDA 5.64
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.52
PEG (5Y)1.53
EPS Next 2Y-0.46%
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 1.45%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.85, MCY has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.89, MCY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.45%

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.
  • MCY has decreased its dividend recently.
Dividend Growth(5Y)-12.81%
Div Incr Years0
Div Non Decr Years1
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

  • MCY pays out 13.00% of its income as dividend. This is a sustainable payout ratio.
  • The Dividend Rate of MCY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP13%
EPS Next 2Y-0.46%
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 (3/13/2026, 8:04:00 PM)

After market: 88.96 0 (0%)

88.96

+1.38 (+1.58%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-17
Earnings (Next)05-04
Inst Owners47.36%
Inst Owner Change-0.6%
Ins Owners35.52%
Ins Owner Change0%
Market Cap4.93B
Revenue(TTM)5.99B
Net Income(TTM)541.10M
Analysts84
Price Target102 (14.66%)
Short Float %7.16%
Short Ratio7.01
Dividend
Industry RankSector Rank
Dividend Yield 1.45%
Yearly Dividend1.27
Dividend Growth(5Y)-12.81%
DP13%
Div Incr Years0
Div Non Decr Years1
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 11.26
Fwd PE 10.49
P/S 0.82
P/FCF 4.79
P/OCF 4.53
P/B 2.04
P/tB 2.08
EV/EBITDA 5.64
EPS(TTM)7.9
EY8.88%
EPS(NY)8.48
Fwd EY9.54%
FCF(TTM)18.57
FCFY20.88%
OCF(TTM)19.63
OCFY22.06%
SpS108.19
BVpS43.64
TBVpS42.75
PEG (NY)1.52
PEG (5Y)1.53
Graham Number88.07
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 1.57
F-Score6
WACC8.4%
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 Y7.39%
EPS Next 2Y-0.46%
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.


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 11.26 and the Price/Book (PB) ratio is 2.04.


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%.