MCY

Mercury General Corporation

Fundamental data last updated:August 20, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Insurance - Property & Casualty

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.

 


Analyze MCY on TradingView

VALUATION

P/E

6.37

Market Cap ($M USD)

$5.35B

Forward P/E

7.88

PEG

-0.41

PRICE TO SALES

0.87

PRICE TO BOOK

2.06

EV / EBITDA

4.02

5-Year Average P/E

Free Cash Flow Yield

26.55%

DCF Value

$96.24

Graham Number

$126.31

Price to FCF

3.77

EV to FCF

3.23

Earnings Yield

15.71%

FCF Yield

26.55%

DIVIDEND

Yield

1.32%

Annual Payout

$1.27

Payout Ratio

8.38%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$15.16

Next Year EPS Growth Estimate

$12.25

Next Year Revenue Growth Estimate

$6.87B

Return on Equity (ROE)

36.48%

FREE CASH FLOW

Operating Margin

16.97%

Debt-to-Equity

0.24

Piotroski F-Score

5

Altman Z-Score

1.35

Return on Invested Capital (ROIC)

30.62%

Current Ratio

0.44

Quick Ratio

0.44

Net Debt to EBITDA

-0.67

Interest Coverage

36.87

Gross Profit margin

43.85%

FCF PER SHARE

$25.63

REVENUE PER SHARE

$110.82

Analyze MCY on TradingView

Gainseekers Quantitative Analysis

Summary

Mercury General Corporation’s valuation presents a mixed picture. Recent pricing indicated it traded slightly above its DCF Value, suggesting a potential overvaluation. The Forward P/E ratio of 11.39 implies moderate growth expectations, yet the Altman Z-score of 1.34 raises concerns about financial distress. The Earnings Yield of 15.21% is attractive, indicating the stock could offer substantial returns relative to its price. However, the market seems cautious, reflected in the “Hold” consensus rating.

AI Exposure / Tech Reliance

Operating within the insurance sector, Mercury General is not inherently tech-driven. However, the industry's shift towards AI for risk assessment and customer service could enhance efficiency. The company's ability to integrate these technologies will be crucial for maintaining competitiveness.

The Bull Case

For value investors, Mercury General shines with a robust ROIC of 30.62% and a compelling FCF Yield of 25.71%. These metrics underscore its capital efficiency and ability to generate cash. The Piotroski F-Score of 5 indicates moderate financial health, while an operating margin of 16.97% suggests strong pricing power. These factors make it an appealing choice for those seeking undervalued opportunities with solid fundamentals.

The Bear Case

Despite its strengths, Mercury General faces significant structural risks. The Price/Book ratio of 2.13 and Price/Sales of 0.90 suggest it may be overvalued relative to its assets and revenue. Its proximity to the 52-week high indicates potential technical overextension. Additionally, a low Current Ratio of 0.44 highlights liquidity concerns, making it vulnerable in volatile markets.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$90.00

Institutional Ownership %

1-Year Beta

0.94

Insider Buying % (6 Mo)

Distance to 52-Week High

7.59%

Distance to 52-Week Low

35.51%

EARNINGS SURPRISE %

62.79%

50-DAY SMA

$94.77

200-DAY SMA

$88.00

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.