(MCY) Mercury General - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NYSE (USA) | Market Cap: 5.596m USD | Total Return: 66.1% in 12m
Avg Turnover: 22.3M
Qual. Beats: 7
Rev. Trend: 97.8%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 6.7 → Forward 19.8
Choppy
Tailwinds
Idiosyncratic Leader
Mercury General Corporation (MCY) is a multi-line insurance provider specializing in personal automobile coverage across 11 U.S. states. Headquartered in California, the company also writes homeowners, commercial property, and umbrella policies through a hybrid distribution model of independent agents and direct digital portals.
The company operates within the Property & Casualty (P&C) sector, where profitability is primarily driven by the combined ratio-the balance between premiums collected and claims paid plus expenses. Unlike direct-to-consumer insurers, Mercury’s reliance on independent agencies allows it to leverage local market expertise while maintaining a diverse underwriting portfolio that includes mechanical protection and personal injury coverages.
Investors can further evaluate the companys historical underwriting performance and valuation metrics on ValueRay.
- California regulatory environment determines ability to implement necessary rate increases
- Loss ratios fluctuate based on severity of weather events and catastrophes
- High concentration in California market creates significant geographic risk exposure
- Investment income yields track broader interest rate and fixed income trends
- Independent agent network performance dictates premium growth and market share acquisition
| Net Income: 839.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 6.33 > 1.0 |
| NWC/Revenue: -59.49% < 20% (prev 33.21%; Δ -92.70% < -1%) |
| CFO/TA 0.15 > 3% & CFO 1.48b > Net Income 839.8m |
| Net Debt (-1.19b) to EBITDA (1.14b): -1.05 < 3 |
| Current Ratio: 0.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.4m) vs 12m ago 0.0% < -2% |
| Gross Margin: 43.85% > 18% (prev 0.13%; Δ 4.37k% > 0.5%) |
| Asset Turnover: 64.95% > 50% (prev 61.98%; Δ 2.97% > 0%) |
| Interest Coverage Ratio: 37.63 > 6 (EBITDA TTM 1.14b / Interest Expense TTM 28.3m) |
| A: -0.37 (Total Current Assets 2.82b - Total Current Liabilities 6.47b) / Total Assets 9.87b |
| B: 0.25 (Retained Earnings 2.49b / Total Assets 9.87b) |
| C: 0.11 (EBIT TTM 1.06b / Avg Total Assets 9.45b) |
| D: 0.36 (Book Value of Equity 2.59b / Total Liabilities 7.28b) |
| Altman-Z'' = -0.47 = B |
| DSRI: 0.61 (Receivables 1.03b/1.52b, Revenue 6.14b/5.60b) |
| GMI: 0.29 (GM 43.85% / 12.57%) |
| AQI: 0.92 (AQ_t 0.70 / AQ_t-1 0.76) |
| SGI: 1.10 (Revenue 6.14b / 5.60b) |
| TATA: -0.06 (NI 839.8m - CFO 1.48b) / TA 9.87b) |
| Beneish M = -4.03 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 101.03 with a total of 177,800 shares traded.
Over the past week, the price has changed by +2.99%,
over one month by +2.93%,
over three months by +14.26% and
over the past year by +66.14%.
Mercury General has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy MCY.
- StrongBuy: 1
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 120 | 18.8% |
P/E Trailing = 6.6599
P/E Forward = 19.7628
P/S = 0.912
P/B = 2.1885
P/EG = 1.1149
Revenue TTM = 6.14b USD
EBIT TTM = 1.06b USD
EBITDA TTM = 1.14b USD
Long Term Debt = 574.6m USD (from longTermDebt, last quarter)
Short Term Debt = 6.77m USD (from shortTermDebt, last fiscal year)
Debt = 599.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 12.7m
Net Debt = -1.19b USD (calculated: Debt 599.9m - CCE 1.79b)
Enterprise Value = 4.40b USD (5.60b + Debt 599.9m - CCE 1.79b)
Interest Coverage Ratio = 37.63 (Ebit TTM 1.06b / Interest Expense TTM 28.3m)
EV/FCF = 3.10x (Enterprise Value 4.40b / FCF TTM 1.42b)
FCF Yield = 32.24% (FCF TTM 1.42b / Enterprise Value 4.40b)
FCF Margin = 23.12% (FCF TTM 1.42b / Revenue TTM 6.14b)
Net Margin = 13.68% (Net Income TTM 839.8m / Revenue TTM 6.14b)
Gross Margin = 43.85% ((Revenue TTM 6.14b - Cost of Revenue TTM 3.45b) / Revenue TTM)
Gross Margin QoQ = 39.41% (prev 85.24%)
Tobins Q-Ratio = 0.45 (Enterprise Value 4.40b / Total Assets 9.87b)
Interest Expense / Debt = 4.71% (Interest Expense 28.3m / Debt 599.9m)
Taxrate = 19.19% (45.2m / 235.7m)
NOPAT = 859.0m (EBIT 1.06b * (1 - 19.19%))
Current Ratio = 0.44 (Total Current Assets 2.82b / Total Current Liabilities 6.47b)
Debt / Equity = 0.23 (Debt 599.9m / totalStockholderEquity, last quarter 2.59b)
Debt / EBITDA = -1.05 (Net Debt -1.19b / EBITDA 1.14b)
Debt / FCF = -0.84 (Net Debt -1.19b / FCF TTM 1.42b)
Total Stockholder Equity = 2.30b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.89% (Net Income 839.8m / Total Assets 9.87b)
RoE = 36.48% (Net Income TTM 839.8m / Total Stockholder Equity 2.30b)
RoCE = 36.95% (EBIT 1.06b / Capital Employed (Equity 2.30b + L.T.Debt 574.6m))
RoIC = 25.49% (NOPAT 859.0m / Invested Capital 3.37b)
WACC = 6.77% (E(5.60b)/V(6.20b) * Re(7.09%) + D(599.9m)/V(6.20b) * Rd(4.71%) * (1-Tc(0.19)))
Discount Rate = 7.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈1.14b ; Y1≈1.31b ; Y5≈1.93b
[DCF] Fair Price = 545.2 (EV 29.0b - Net Debt -1.19b = Equity 30.2b / Shares 55.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.23 | # QB: 7
Revenue Correlation: 97.81 | Revenue CAGR: 14.50% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.80 | Chg30d=+33.33% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=3.35 | Chg30d=+21.82% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=11.75 | Chg30d=+30.56% | Revisions=+20% | GrowthEPS=+48.7% | GrowthRev=+8.5%
EPS next Year (2027-12-31): EPS=12.00 | Chg30d=+50.00% | Revisions=+20% | GrowthEPS=+2.1% | GrowthRev=+5.4%