(MCY) Mercury General - Ratings and Ratios
Auto, Homeowners, Commercial, Umbrella, Mechanical
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.34% |
| Yield on Cost 5y | 2.91% |
| Yield CAGR 5y | -15.74% |
| Payout Consistency | 93.3% |
| Payout Ratio | 18.1% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 30.2% |
| Value at Risk 5%th | 44.8% |
| Relative Tail Risk | -9.83% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.00 |
| Alpha | 27.25 |
| CAGR/Max DD | 1.12 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.493 |
| Beta | 0.712 |
| Beta Downside | 0.868 |
| Drawdowns 3y | |
|---|---|
| Max DD | 39.99% |
| Mean DD | 11.87% |
| Median DD | 8.80% |
Description: MCY Mercury General November 08, 2025
Mercury General Corporation (NYSE: MCY) writes personal automobile insurance across the United States and also offers homeowners, commercial auto, commercial property, mechanical protection, and umbrella policies. Its auto portfolio includes collision, property-damage, bodily-injury, comprehensive, PIP, under-insured/un-insured motorist, and other coverages, while its homeowners line covers dwelling, liability, personal-property, and related risks. Distribution is handled through independent agents, insurance agencies, and direct internet portals in 12 states, including high-growth markets such as California, Florida, Texas, and New York. The company was founded in 1961 and is headquartered in Los Angeles, California.
Key operational metrics show a 2023 combined ratio of 96.4%, indicating underwriting profitability, and a net written premium growth of 7% YoY, driven largely by expanding digital sales channels. Mercury’s earnings are sensitive to interest-rate fluctuations because a significant portion of its investment portfolio is allocated to fixed-income assets, a common driver for the P&C sector. Additionally, the firm’s loss reserve adequacy remains above the industry median, reflecting disciplined claims management in a market where auto loss frequency is rising due to increased vehicle miles traveled post-pandemic.
If you’re looking to dig deeper into MCY’s valuation fundamentals, a quick look at ValueRay’s analyst toolkit can surface comparable peer ratios and scenario-based forecasts that may sharpen your investment thesis.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income (439.6m TTM) > 0 and > 6% of Revenue (6% = 349.4m TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA -1.33pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 33.37% (prev 29.28%; Δ 4.09pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 1.05b > Net Income 439.6m (YES >=105%, WARN >=100%) |
| Net Debt (-678.1m) to EBITDA (640.7m) ratio: -1.06 <= 3.0 (WARN <= 3.5) |
| Current Ratio 24.74 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (55.4m) change vs 12m ago 0.02% (target <= -2.0% for YES) |
| Gross Margin 16.02% (prev 18.94%; Δ -2.92pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 66.45% (prev 67.27%; Δ -0.82pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.50 (EBITDA TTM 640.7m / Interest Expense TTM 29.1m) >= 6 (WARN >= 3) |
Altman Z'' 2.86
| (A) 0.21 = (Total Current Assets 2.02b - Total Current Liabilities 81.8m) / Total Assets 9.37b |
| (B) 0.23 = Retained Earnings (Balance) 2.13b / Total Assets 9.37b |
| (C) 0.06 = EBIT TTM 567.4m / Avg Total Assets 8.76b |
| (D) 0.31 = Book Value of Equity 2.23b / Total Liabilities 7.14b |
| Total Rating: 2.86 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 86.94
| 1. Piotroski 4.0pt |
| 2. FCF Yield 21.98% |
| 3. FCF Margin 17.02% |
| 4. Debt/Equity 0.26 |
| 5. Debt/Ebitda -1.06 |
| 6. ROIC - WACC (= 9.82)% |
| 7. RoE 22.07% |
| 8. Rev. Trend 88.50% |
| 9. EPS Trend 59.34% |
What is the price of MCY shares?
Over the past week, the price has changed by +1.65%, over one month by +2.07%, over three months by +16.16% and over the past year by +40.59%.
Is MCY a buy, sell or hold?
- Strong Buy: 1
- Buy: 0
- Hold: 0
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the MCY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 100 | 5.6% |
| Analysts Target Price | 100 | 5.6% |
| ValueRay Target Price | 117.8 | 24.4% |
MCY Fundamental Data Overview December 20, 2025
P/E Trailing = 11.8058
P/S = 0.8918
P/B = 2.3105
P/EG = 1.19
Beta = 0.982
Revenue TTM = 5.82b USD
EBIT TTM = 567.4m USD
EBITDA TTM = 640.7m USD
Long Term Debt = 574.4m USD (from longTermDebt, last quarter)
Short Term Debt = 7.64m USD (from shortTermDebt, last fiscal year)
Debt = 574.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -678.1m USD (from netDebt column, last quarter)
Enterprise Value = 4.51b USD (5.19b + Debt 574.4m - CCE 1.25b)
Interest Coverage Ratio = 19.50 (Ebit TTM 567.4m / Interest Expense TTM 29.1m)
FCF Yield = 21.98% (FCF TTM 990.9m / Enterprise Value 4.51b)
FCF Margin = 17.02% (FCF TTM 990.9m / Revenue TTM 5.82b)
Net Margin = 7.55% (Net Income TTM 439.6m / Revenue TTM 5.82b)
Gross Margin = 16.02% ((Revenue TTM 5.82b - Cost of Revenue TTM 4.89b) / Revenue TTM)
Gross Margin QoQ = 29.40% (prev 20.97%)
Tobins Q-Ratio = 0.48 (Enterprise Value 4.51b / Total Assets 9.37b)
Interest Expense / Debt = 1.25% (Interest Expense 7.18m / Debt 574.4m)
Taxrate = 19.96% (69.9m / 350.3m)
NOPAT = 454.1m (EBIT 567.4m * (1 - 19.96%))
Current Ratio = 24.74 (Total Current Assets 2.02b / Total Current Liabilities 81.8m)
Debt / Equity = 0.26 (Debt 574.4m / totalStockholderEquity, last quarter 2.23b)
Debt / EBITDA = -1.06 (Net Debt -678.1m / EBITDA 640.7m)
Debt / FCF = -0.68 (Net Debt -678.1m / FCF TTM 990.9m)
Total Stockholder Equity = 1.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.69% (Net Income 439.6m / Total Assets 9.37b)
RoE = 22.07% (Net Income TTM 439.6m / Total Stockholder Equity 1.99b)
RoCE = 22.11% (EBIT 567.4m / Capital Employed (Equity 1.99b + L.T.Debt 574.4m))
RoIC = 17.69% (NOPAT 454.1m / Invested Capital 2.57b)
WACC = 7.88% (E(5.19b)/V(5.76b) * Re(8.64%) + D(574.4m)/V(5.76b) * Rd(1.25%) * (1-Tc(0.20)))
Discount Rate = 8.64% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.02%
[DCF Debug] Terminal Value 77.86% ; FCFE base≈982.7m ; Y1≈1.10b ; Y5≈1.47b
Fair Price DCF = 412.5 (DCF Value 22.85b / Shares Outstanding 55.4m; 5y FCF grow 14.18% → 3.0% )
EPS Correlation: 59.34 | EPS CAGR: 32.60% | SUE: 2.94 | # QB: 5
Revenue Correlation: 88.50 | Revenue CAGR: 11.63% | SUE: 1.05 | # QB: 1
EPS next Quarter (2026-03-31): EPS=2.10 | Chg30d=+0.250 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=8.40 | Chg30d=+1.000 | Revisions Net=+1 | Growth EPS=+23.5% | Growth Revenue=+7.0%
Additional Sources for MCY Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle