(MCY) Mercury General - Ratings and Ratios
Auto Insurance, Home Insurance, Commercial Auto, Umbrella, Property
MCY EPS (Earnings per Share)
MCY Revenue
Description: MCY Mercury General
Mercury General Corporation is a property and casualty insurance company that primarily engages in writing personal automobile insurance in the United States, with a presence in multiple states. The company also offers a range of other insurance products, including homeowners, commercial automobile, and umbrella insurance. Its diversified product portfolio allows it to cater to various customer needs, increasing its revenue streams.
The companys distribution network comprises independent agents, insurance agencies, and direct internet sales portals, enabling it to reach a wide customer base. With operations in 11 states, including Arizona, California, and Texas, Mercury General Corporation has established a significant presence in the US insurance market. Its long history, dating back to 1961, and headquarters in Los Angeles, California, suggest a deep understanding of the market and its dynamics.
From a financial perspective, Mercury General Corporation has a market capitalization of approximately $3.87 billion, indicating a moderate size. Its return on equity (ROE) of 15.73% suggests a relatively strong profitability. To further analyze its performance, key performance indicators (KPIs) such as loss ratio, expense ratio, and combined ratio can be examined. A loss ratio below 70% and a combined ratio below 100% would indicate efficient operations and effective risk management. Additionally, metrics like premium growth rate, customer retention rate, and return on investment (ROI) can provide insights into the companys revenue growth, customer loyalty, and investment performance.
To evaluate the companys stock, we can consider its price-to-earnings (P/E) ratio of 13.55, which is relatively moderate. Comparing this to industry peers and the overall market can help determine if the stock is undervalued or overvalued. Furthermore, analyzing the companys dividend yield, payout ratio, and historical stock performance can provide a more comprehensive understanding of its investment potential.
MCY Stock Overview
| Market Cap in USD | 4,313m |
| Sub-Industry | Property & Casualty Insurance |
| IPO / Inception | 1990-03-26 |
MCY Stock Ratings
| Growth Rating | 62.1% |
| Fundamental | 84.9% |
| Dividend Rating | 12.3% |
| Return 12m vs S&P 500 | 12.7% |
| Analyst Rating | 5.0 of 5 |
MCY Dividends
| Dividend Yield 12m | 1.80% |
| Yield on Cost 5y | 3.50% |
| Annual Growth 5y | -12.80% |
| Payout Consistency | 95.2% |
| Payout Ratio | 22.3% |
MCY Growth Ratios
| Growth Correlation 3m | 97.9% |
| Growth Correlation 12m | 22.3% |
| Growth Correlation 5y | 35.6% |
| CAGR 5y | 39.39% |
| CAGR/Max DD 3y | 0.99 |
| CAGR/Mean DD 3y | 4.47 |
| Sharpe Ratio 12m | 1.49 |
| Alpha | 0.14 |
| Beta | 0.514 |
| Volatility | 30.14% |
| Current Volume | 213.7k |
| Average Volume 20d | 186.9k |
| Stop Loss | 75.3 (-3%) |
| Signal | 0.96 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (390.1m TTM) > 0 and > 6% of Revenue (6% = 346.1m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA -1.12pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 31.80% (prev -27.64%; Δ 59.45pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 869.3m > Net Income 390.1m (YES >=105%, WARN >=100%) |
| Net Debt (-547.9m) to EBITDA (571.1m) ratio: -0.96 <= 3.0 (WARN <= 3.5) |
| Current Ratio 49.35 (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 0.03% (target <= -2.0% for YES) |
| Gross Margin 14.71% (prev -26.10%; Δ 40.81pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 68.75% (prev 65.20%; Δ 3.55pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.79 (EBITDA TTM 571.1m / Interest Expense TTM 29.6m) >= 6 (WARN >= 3) |
Altman Z'' 2.69
| (A) 0.20 = (Total Current Assets 1.87b - Total Current Liabilities 37.9m) / Total Assets 9.08b |
| (B) 0.21 = Retained Earnings (Balance) 1.87b / Total Assets 9.08b |
| (C) 0.06 = EBIT TTM 497.5m / Avg Total Assets 8.39b |
| (D) 0.28 = Book Value of Equity 1.97b / Total Liabilities 7.11b |
| Total Rating: 2.69 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 84.85
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 21.71% = 5.0 |
| 3. FCF Margin 14.17% = 3.54 |
| 4. Debt/Equity 0.29 = 2.46 |
| 5. Debt/Ebitda 1.01 = 1.76 |
| 6. ROIC - WACC (= 9.27)% = 11.58 |
| 7. RoE 20.53% = 1.71 |
| 8. Rev. Trend 87.06% = 6.53 |
| 9. EPS Trend 45.33% = 2.27 |
What is the price of MCY shares?
Over the past week, the price has changed by -0.14%, over one month by +6.54%, over three months by +19.24% and over the past year by +33.82%.
Is Mercury General a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCY is around 80.40 USD . This means that MCY is currently overvalued and has a potential downside of 3.55%.
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 | 90 | 15.9% |
| Analysts Target Price | 90 | 15.9% |
| ValueRay Target Price | 88.6 | 14.1% |
Last update: 2025-09-11 04:43
MCY Fundamental Data Overview
CCE Cash And Equivalents = 1.12b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 11.0611
P/S = 0.7477
P/B = 2.1956
P/EG = 1.19
Beta = 0.998
Revenue TTM = 5.77b USD
EBIT TTM = 497.5m USD
EBITDA TTM = 571.1m USD
Long Term Debt = 574.3m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (0.0)
Debt = 574.3m USD (Calculated: Short Term 0.0 + Long Term 574.3m)
Net Debt = -547.9m USD (from netDebt column, last quarter)
Enterprise Value = 3.77b USD (4.31b + Debt 574.3m - CCE 1.12b)
Interest Coverage Ratio = 16.79 (Ebit TTM 497.5m / Interest Expense TTM 29.6m)
FCF Yield = 21.71% (FCF TTM 817.5m / Enterprise Value 3.77b)
FCF Margin = 14.17% (FCF TTM 817.5m / Revenue TTM 5.77b)
Net Margin = 6.76% (Net Income TTM 390.1m / Revenue TTM 5.77b)
Gross Margin = 14.71% ((Revenue TTM 5.77b - Cost of Revenue TTM 4.92b) / Revenue TTM)
Tobins Q-Ratio = 1.91 (Enterprise Value 3.77b / Book Value Of Equity 1.97b)
Interest Expense / Debt = 1.25% (Interest Expense 7.20m / Debt 574.3m)
Taxrate = 18.60% (106.9m / 574.9m)
NOPAT = 404.9m (EBIT 497.5m * (1 - 18.60%))
Current Ratio = 49.35 (Total Current Assets 1.87b / Total Current Liabilities 37.9m)
Debt / Equity = 0.29 (Debt 574.3m / last Quarter total Stockholder Equity 1.97b)
Debt / EBITDA = 1.01 (Net Debt -547.9m / EBITDA 571.1m)
Debt / FCF = 0.70 (Debt 574.3m / FCF TTM 817.5m)
Total Stockholder Equity = 1.90b (last 4 quarters mean)
RoA = 4.29% (Net Income 390.1m, Total Assets 9.08b )
RoE = 20.53% (Net Income TTM 390.1m / Total Stockholder Equity 1.90b)
RoCE = 20.11% (Ebit 497.5m / (Equity 1.90b + L.T.Debt 574.3m))
RoIC = 16.37% (NOPAT 404.9m / Invested Capital 2.47b)
WACC = 7.10% (E(4.31b)/V(4.89b) * Re(7.91%)) + (D(574.3m)/V(4.89b) * Rd(1.25%) * (1-Tc(0.19)))
Shares Correlation 3-Years: 87.04 | Cagr: 0.00%
Discount Rate = 7.91% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 79.88% ; FCFE base≈802.0m ; Y1≈900.1m ; Y5≈1.20b
Fair Price DCF = 376.6 (DCF Value 20.86b / Shares Outstanding 55.4m; 5y FCF grow 14.18% → 3.0% )
EPS Correlation: 45.33 | EPS CAGR: 127.1% | SUE: 1.89 | # QB: 4
Revenue Correlation: 87.06 | Revenue CAGR: 19.75% | SUE: N/A | # QB: None
Additional Sources for MCY Stock
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