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Company Analysis

Mercury General Corporation MCY

A comprehensive view of key metrics, scores, and financial health for Mercury General Corporation

Overview of Mercury General Corporation

MCY NYQ
Financial Services Insurance - Property & Casualty Framework: Insurance & Reinsurance Mid Cap
Mercury General Corporation (MCY), is a Mid Cap company, in the Insurance - Property & Casualty industry, last closed at $103.73, about 48.9% overvalued vs fair value, +26.5% 1Y return, ranked 430/1078 in sector.
Metrics P/E 9.6× Rev Growth 9.4% ROE 24.8% Gross Margin 33.9% Div Yield 1.35%
USD 103.73
1.28%
(Delayed)
• Vol 90d: 22.8%
52-Week Range
Market Cap
$5.75B
Enterprise Value
$4.99B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Weak
Valuation
Weak
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Weak
Valuation
Weak
Completeness: 94%
Confidence: 93%
Updated: Oct 31
Top Beats
No strong beats yet

Quick Facts

Website https://www.mercuryinsurance.c...
HQ Los Angeles, CA
Employees 4,380
Fiscal year Dec 31

Next Events

Earnings Nov 3

Fair Value Snapshot

Bear Base Bull
$29
$53
$99
Current: $103.73 -49% vs base

Engine Room Money Flow™

Mid Cap

Insurance & Reinsurance - Where revenue goes and how value is created

Flow Steps
Total Revenue
$6.0B
9.4%%
Claims & Losses
-$4.0B
-12.8%%
Acquisition & Admin Expenses
-$14.8M
Underwriting Result
$663.6M
15.4%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Insurance & Reinsurance

Quality & Reliability Indicators

Loss Ratio
66.1%
Fair

Claims & Losses / Revenue — core underwriting discipline metric; lower is better

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$70.3M
13.0% of Net Income

Where It Leaks

Cash Flow Health healthy
Strong cash conversion with minimal leakage across profit-to-cash-to-value chain.
0
Active Leaks
0/0
Improving
0
High Impact
0
Critical
Moat Analysis Insurance & Reinsurance

Competitive Advantage Assessment

Evaluating Mercury General Corporation's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
44
/100
Developing
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Strong Return on Equity ROE signal is strong (score 0.77), with ROE at 24.8% — indicating efficient capital deployment.
  • Consistent Premium Growth Premium growth trend is positive (signal score 0.86), reflecting successful new business generation and pricing momentum.

Key risks

  • Below-Peer Underwriting Margins Gross margin at 28.9th percentile and operating margin at 36.4th percentile indicate weak underwriting discipline vs peers.
  • Volatile Underwriting Results Underwriting stability is low (score 0.27), indicating significant exposure to loss cycle or catastrophe volatility.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Underwriting Discipline

Developing
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Signals, strengths and risks for Underwriting Discipline

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Signals, strengths and risks for Float Investment Quality

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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Capital Strength & Solvency

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Signals, strengths and risks for Operational Efficiency

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Signals, strengths and risks for Scale & Diversification

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Insurance (Life, P&C, Reinsurance) vs Industry Peers 100% Coverage
Trade-Off Triangle Visualization A ternary plot showing MCY's balance between Growth (34.2%), Profitability (35.4%), and Safety (30.4%). Growth 34% Safety 30% Profitability 35%

Click axes to expand details. Marker shows current allocation.

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Growth

65th percentile vs peers
65
Key Signals
Rev Growth YoY 9.4% 56p Revenue CAGR 3Y 18.0% 74p Equity Growth YoY 24.2% 78p EPS Growth YoY 15.6% 46p Asset Growth YoY 15.0% 83p
Strengths
  • ROE in top 20% of peers (24.8%, 87th percentile)
  • Growth above peer median with strong metric coverage (100%)
Risks

No significant risks identified for this axis.

Profitability

67th percentile vs peers
67
Key Signals
Strengths
Risks
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Safety

57th percentile vs peers
58
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Mercury General Corporation.

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$53.01
- - -
-48.9% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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