Mercury General Corporation

Valuation Analysis

About the Company

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. It also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. The company's 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, and other coverages. It 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 Vir

Mercury General Corporation Stock at a Glance

Mercury General Corporation (MCY) is currently trading at $100.93 with a market capitalization of $5.6B. The trailing P/E ratio stands at 6.65x, with a forward P/E of 8.41x. The 52-week range spans from $62.25 to $103.86; the current price is 2.8% below the yearly high. Year-over-year revenue growth stands at +10.5%. The net profit margin stands at 13.69%.

💰 Dividend

Mercury General Corporation pays an annual dividend of $1.27 per share, representing a yield of 1.26%. The payout ratio stands at 8.37%.

📊 Analyst Rating

1 analysts rate Mercury General Corporation (MCY) on consensus: None. The average price target is $120.00, implying +18.89% from the current price. Analyst price targets range from $120.00 to $120.00.

Mercury General Corporation: The Investment Case in Detail

Mercury General Corporation (MCY) operates in the Financial Services — specifically Insurance - Property & Casualty — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.5% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Return on equity of 38.08% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

Valuation in Context

The PEG ratio at 1.11 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 3.83x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The share is trading at 93% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Mercury General Corporation?

Compare top-rated brokers — low fees, trusted providers, fully regulated.