Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.
Average dividend payer with moderate growth potential.
Share Price & News
How has Mercury General's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCG has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MCG underperformed the German Insurance industry which returned -8.3% over the past year.
Return vs Market: MCG underperformed the German Market which returned 3.8% over the past year.
Price Volatility Vs. Market
How volatile is Mercury General's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Mercury General undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCG (€34.8) is trading above our estimate of fair value (€26.77)
Significantly Below Fair Value: MCG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCG is poor value based on its PE Ratio (52.8x) compared to the DE Insurance industry average (10x).
PE vs Market: MCG is poor value based on its PE Ratio (52.8x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: MCG is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: MCG is overvalued based on its PB Ratio (1.5x) compared to the DE Insurance industry average (1x).
How is Mercury General forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCG's forecast earnings growth (132.8% per year) is above the savings rate (0.2%).
Earnings vs Market: MCG's earnings (132.8% per year) are forecast to grow faster than the German market (23.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MCG's revenue (1.2% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: MCG's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MCG's Return on Equity is forecast to be high in 3 years time
How has Mercury General performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCG has high quality earnings.
Growing Profit Margin: MCG's current net profit margins (1.2%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: MCG's earnings have grown by 18.7% per year over the past 5 years.
Accelerating Growth: MCG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MCG had negative earnings growth (-74%) over the past year, making it difficult to compare to the Insurance industry average (10%).
Return on Equity
High ROE: MCG's Return on Equity (2.8%) is considered low.
How is Mercury General's financial position?
Financial Position Analysis
Short Term Liabilities: MCG's short term assets ($1.2B) do not cover its short term liabilities ($1.5B).
Long Term Liabilities: MCG's short term assets ($1.2B) do not cover its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: MCG's debt to equity ratio (22%) is considered satisfactory.
Reducing Debt: MCG's debt to equity ratio has increased from 15.6% to 22% over the past 5 years.
Debt Coverage: MCG's debt is well covered by operating cash flow (123.6%).
Interest Coverage: MCG's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is Mercury General current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCG's dividend (5.87%) is higher than the bottom 25% of dividend payers in the German market (1.25%).
High Dividend: MCG's dividend (5.87%) is in the top 25% of dividend payers in the German market (3.83%)
Stability and Growth of Payments
Stable Dividend: MCG's dividends per share have been stable in the past 10 years.
Growing Dividend: MCG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (309.3%), MCG's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gabe Tirador (55 yo)
Mr. Gabriel Tirador, also known as Gabe, has been the President of California Automobile Insurance Company and Mercury General Corporation since October 2001 and has been its Chief Executive Officer since ...
CEO Compensation Analysis
Compensation vs Market: Gabe's total compensation ($USD1.71M) is about average for companies of similar size in the German market ($USD1.49M).
Compensation vs Earnings: Gabe's compensation has been consistent with company performance over the past year.
|Executive Chairman of the Board||59.58yrs||€1.74m||35.43% |
|Senior VP & CFO||18.83yrs||€996.75k||0.0085% |
|VP & Chief Investment Officer||22.58yrs||€784.76k||0.012% |
|VP & Chief Information Officer||no data||€554.45k||0.0014% |
|Vice President of Advertising & Public Relations||2.83yrs||no data||no data|
|VP & Chief Marketing Officer||11.58yrs||no data||0.0049% |
|VP & Chief Human Capital Officer||no data||no data||no data|
|VP & Chief Claims Officer||5.42yrs||no data||no data|
|VP & Chief Underwriting Officer||3.08yrs||no data||no data|
|VP & Chief Product Officer||no data||no data||0.0016% |
|VP of Corporate Affairs & Secretary||38.58yrs||no data||no data|
Experienced Management: MCG's management team is seasoned and experienced (12.6 years average tenure).
|Executive Chairman of the Board||59.58yrs||€1.74m||35.43% |
|Independent Director||6.5yrs||€61.00k||no data|
|Independent Director||3.5yrs||€72.00k||0.0025% |
|Lead Independent Director||3.25yrs||€96.00k||no data|
|Independent Director||1.83yrs||€66.00k||no data|
|Independent Director||1.83yrs||€62.00k||0.0045% |
Experienced Board: MCG's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Mercury General Corporation's company bio, employee growth, exchange listings and data sources
- Name: Mercury General Corporation
- Ticker: MCG
- Exchange: DB
- Founded: 1961
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$2.375b
- Listing Market Cap: US$2.022b
- Shares outstanding: 55.36m
- Website: https://www.mercuryinsurance.com
Number of Employees
- Mercury General Corporation
- 4484 Wilshire Boulevard
- Los Angeles
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MCY||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Nov 1985|
|MCG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 1985|
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, me ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/03 21:15|
|End of Day Share Price||2020/08/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.