MERCURY GENERAL CORP (MCY)
US5894001008 - Common Stock
MCY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. MCY has an average financial health and profitability rating. MCY is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MCY was profitable.
MCY had a positive operating cash flow in the past year.
Of the past 5 years MCY 4 years were profitable.
Each year in the past 5 years MCY had a positive operating cash flow.
1.2 Ratios
MCY has a Return On Assets of 6.85%. This is amongst the best in the industry. MCY outperforms 89.93% of its industry peers.
The Return On Equity of MCY (29.98%) is better than 94.96% of its industry peers.
The Return On Invested Capital of MCY (7.22%) is better than 86.33% 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
MCY has a better Profit Margin (10.18%) than 63.31% of its industry peers.
MCY's Profit Margin has declined in the last couple of years.
MCY has a Operating Margin of 13.14%. This is comparable to the rest of the industry: MCY outperforms 56.12% of its industry peers.
MCY's Operating Margin has declined in the last couple of years.
| 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
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.
MCY has a worse debt/assets ratio than last year.
2.2 Solvency
MCY has an Altman-Z score of 1.63. This is a bad value and indicates that MCY is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.63, MCY belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
The Debt to FCF ratio of MCY is 0.59, which is an excellent value as it means it would take MCY, only 0.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.59, MCY is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that MCY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, MCY perfoms like the industry average, outperforming 57.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.85
WACC8.5%
2.3 Liquidity
MCY has a Current Ratio of 0.21. 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 (0.21) is better than 70.50% of its industry peers.
MCY has a Quick Ratio of 0.21. This is a bad value and indicates that MCY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.21, MCY is doing good in the industry, outperforming 70.50% of the companies in the same industry.
| 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.
Measured over the past years, MCY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.12% on average per year.
MCY shows a strong growth in Revenue. In the last year, 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.
Based on estimates for the next years, MCY will show a quite strong growth in Revenue. The Revenue will grow by 11.44% on average per year.
EPS Next Y1978.92%
EPS Next 2Y367.8%
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
Based on the Price/Earnings ratio of 13.75, the valuation of MCY can be described as correct.
MCY's Price/Earnings ratio is in line with the industry average.
MCY is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.65, the valuation of MCY can be described as reasonable.
MCY's Price/Forward Earnings is on the same level as the industry average.
MCY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 11.65 |
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 77.70% of the companies listed in the same industry.
MCY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCY is cheaper than 76.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | 5.41 |
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 2Y367.8%
EPS Next 3Y186.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, MCY has a reasonable but not impressive dividend return.
MCY's Dividend Yield is comparable with the industry average which is at 4.25.
MCY's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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.
Dividend Growth(5Y)-12.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
12.60% of the earnings are spent on dividend by MCY. This is a low number and sustainable payout ratio.
DP12.6%
EPS Next 2Y367.8%
EPS Next 3Y186.7%
MERCURY GENERAL CORP
NYSE:MCY (11/21/2024, 8:04:00 PM)
After market: 75.75 -0.71 (-0.93%)76.46
+2.73 (+3.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 11.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 29.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.14% | ||
| PM (TTM) | 10.18% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)341.74%
EPS 3Y-62.17%
EPS 5Y
EPS Q2Q%
EPS Next Y1978.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.45%
Revenue growth 3Y6.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y