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Mercury General

DB:MCG
Snowflake Description

6 star dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCG
DB
$4B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The last earnings update was 78 days ago. More info.


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MCG Share Price and Events
7 Day Returns
0%
DB:MCG
-0.5%
DE Insurance
-0.3%
DE Market
1 Year Returns
50.1%
DB:MCG
20.9%
DE Insurance
-6.7%
DE Market
MCG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mercury General (MCG) 0% 5.9% 27% 50.1% 15.7% 63.2%
DE Insurance -0.5% 3.9% 3.4% 20.9% 61.4% 63.4%
DE Market -0.3% 2.3% -2% -6.7% 11.3% 12.2%
1 Year Return vs Industry and Market
  • MCG outperformed the Insurance industry which returned 20.9% over the past year.
  • MCG outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
MCG
Industry
5yr Volatility vs Market

Value

 Is Mercury General undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mercury General to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mercury General.

DB:MCG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $33.44 * 4.8%
$1.60
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $33.44
Discount Rate (Cost of Equity) See below 5.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MCG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 21%) (11.79%))
0.832
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.832 * 5.96%)
5.19%

Discounted Cash Flow Calculation for DB:MCG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Mercury General is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:MCG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (4.8% – 5.19%) * $33.44)
$-0.14
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.14 / (5.19% - 0.23%)
$-2.73
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $33.44 + $-2.73
$30.71
DB:MCG Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MCG represents 0.89863x of NYSE:MCY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89863x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 30.71 x 0.89863
€27.60
Value per share (EUR) From above. €27.60
Current discount Discount to share price of €57.00
= -1 x (€57.00 - €27.60) / €27.60
-106.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mercury General is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mercury General's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mercury General's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MCG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.12
NYSE:MCY Share Price ** NYSE (2019-07-17) in USD $63.43
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.58x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mercury General.

DB:MCG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MCY Share Price ÷ EPS (both in USD)

= 63.43 ÷ 3.12

20.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercury General is overvalued based on earnings compared to the DE Insurance industry average.
  • Mercury General is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Mercury General's expected growth come at a high price?
Raw Data
DB:MCG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
1.1%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:MCG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.32x ÷ 1.1%

18.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercury General is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mercury General's assets?
Raw Data
DB:MCG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $31.06
NYSE:MCY Share Price * NYSE (2019-07-17) in USD $63.43
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:MCG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MCY Share Price ÷ Book Value per Share (both in USD)

= 63.43 ÷ 31.06

2.04x

* Primary Listing of Mercury General.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercury General is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Mercury General's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Mercury General has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mercury General expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mercury General expected to grow at an attractive rate?
  • Mercury General's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Mercury General's earnings growth is positive but not above the Germany market average.
  • Mercury General's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MCG Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MCG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 1.1%
DB:MCG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.6%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MCG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MCG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,207 232 1
2020-12-31 3,899 228 2
2019-12-31 3,665 285 1
DB:MCG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,615 480 173
2018-12-31 3,380 383 -6
2018-09-30 3,421 390 96
2018-06-30 3,381 351 84
2018-03-31 3,348 346 75
2017-12-31 3,413 341 145
2017-09-30 3,293 354 99
2017-06-30 3,246 361 79
2017-03-31 3,251 316 77
2016-12-31 3,228 292 73
2016-09-30 3,276 255 123
2016-06-30 3,221 223 111

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mercury General's earnings are expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
  • Mercury General's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MCG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Mercury General Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MCG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.20 4.20 4.20 1.00
2020-12-31 4.10 4.35 3.95 3.00
2019-12-31 5.14 5.14 5.13 2.00
DB:MCG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.12
2018-12-31 -0.10
2018-09-30 1.73
2018-06-30 1.52
2018-03-31 1.36
2017-12-31 2.62
2017-09-30 1.79
2017-06-30 1.44
2017-03-31 1.39
2016-12-31 1.32
2016-09-30 2.22
2016-06-30 2.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mercury General is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mercury General's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mercury General has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mercury General performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mercury General's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mercury General's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Mercury General's 1-year earnings growth exceeds its 5-year average (129.4% vs -13.2%)
  • Mercury General's earnings growth has exceeded the DE Insurance industry average in the past year (129.4% vs 9.4%).
Earnings and Revenue History
Mercury General's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mercury General Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MCG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,614.56 172.75 44.83
2018-12-31 3,380.00 -5.73 41.00
2018-09-30 3,420.65 95.93 39.40
2018-06-30 3,380.89 83.84 40.40
2018-03-31 3,348.34 75.29 37.20
2017-12-31 3,412.66 144.88 37.40
2017-09-30 3,293.00 99.02 37.50
2017-06-30 3,246.11 79.46 35.60
2017-03-31 3,251.27 76.70 38.50
2016-12-31 3,227.68 73.04 39.60
2016-09-30 3,276.25 122.53 39.10
2016-06-30 3,220.50 110.87 40.00
2016-03-31 3,088.67 71.64 43.00
2015-12-31 3,009.30 74.48 44.00
2015-09-30 2,944.94 30.12 44.90
2015-06-30 2,912.52 46.14 39.20
2015-03-31 2,993.37 131.47 32.60
2014-12-31 3,011.77 177.95 23.00
2014-09-30 2,999.62 214.28 21.10
2014-06-30 3,008.30 222.56 20.80
2014-03-31 2,843.74 118.33 20.40
2013-12-31 2,820.94 112.14 20.00
2013-09-30 2,792.34 79.39 1.00
2013-06-30 2,795.31 106.02 1.00
2013-03-31 2,800.28 110.02 1.00
2012-12-31 2,782.80 116.91 19.00
2012-09-30 2,851.35 213.76 -1.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mercury General has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mercury General used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • Mercury General has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mercury General's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mercury General has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mercury General's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mercury General's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mercury General's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Mercury General's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Mercury General's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mercury General Company Filings, last reported 3 months ago.

DB:MCG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,719.29 374.15 637.46
2018-12-31 1,617.68 376.59 567.59
2018-09-30 1,734.23 372.60 524.49
2018-06-30 1,709.86 372.93 514.34
2018-03-31 1,684.22 372.24 535.27
2017-12-31 1,761.39 372.54 594.12
2017-09-30 1,776.19 372.83 651.04
2017-06-30 1,763.19 372.86 541.47
2017-03-31 1,745.97 372.45 497.29
2016-12-31 1,752.40 320.77 596.00
2016-09-30 1,815.46 293.29 436.71
2016-06-30 1,822.03 297.60 414.59
2016-03-31 1,807.38 299.80 390.29
2015-12-31 1,820.89 301.53 449.50
2015-09-30 1,829.50 296.06 3,643.57
2015-06-30 1,847.74 291.56 3,634.55
2015-03-31 1,869.96 291.41 3,677.94
2014-12-31 1,875.45 294.03 662.45
2014-09-30 1,924.64 291.29 3,687.38
2014-06-30 1,923.66 270.00 3,648.06
2014-03-31 1,861.81 270.00 542.39
2013-12-31 1,822.49 190.00 3,424.82
2013-09-30 1,840.16 180.00 3,376.39
2013-06-30 1,833.87 140.00 345.85
2013-03-31 1,875.35 140.00 3,389.80
2012-12-31 1,842.50 140.10 3,338.28
2012-09-30 1,893.83 140.26 3,348.79
  • Mercury General's level of debt (21.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.5% vs 21.8% today).
  • Debt is well covered by operating cash flow (128.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.5x coverage).
X
Financial health checks
We assess Mercury General's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mercury General has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Mercury General's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.96%
Current annual income from Mercury General dividends. Estimated to be 3.96% next year.
If you bought €2,000 of Mercury General shares you are expected to receive €79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mercury General's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Mercury General's dividend is above the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MCG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MCG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.53 1.00
2020-12-31 2.51 3.00
2019-12-31 2.51 3.00
DB:MCG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-30 2.510 4.246
2019-04-29 2.510 4.701
2019-02-13 2.510 4.877
2019-02-11 2.510 4.867
2018-10-30 2.510 4.612
2018-10-29 2.510 4.195
2018-07-31 2.500 4.853
2018-07-30 2.500 4.976
2018-05-01 2.500 5.416
2018-04-30 2.500 5.504
2017-10-30 2.500 5.037
2017-08-01 2.490 4.354
2017-07-31 2.490 4.181
2017-02-06 2.490 4.372
2016-11-01 2.490 4.192
2016-10-31 2.490 4.504
2016-05-02 2.480 4.662
2016-02-09 2.480 4.649
2016-02-08 2.480 5.028
2015-11-02 2.480 5.178
2015-08-05 2.470 4.753
2015-08-04 2.470 4.446
2015-08-03 2.470 4.434
2015-04-28 2.470 4.420
2015-04-27 2.470 4.351
2014-11-03 2.470 4.402
2014-07-28 2.460 4.891
2014-04-29 2.460 5.197
2014-04-28 2.460 5.140
2013-10-28 2.460 5.291
2013-07-29 2.450 5.294
2013-04-29 2.450 5.496
2013-02-04 2.450 6.355
2012-10-31 2.450 6.069
2012-07-30 2.440 6.296
2012-04-30 2.440 5.735
2012-02-06 2.440 5.559
2011-10-31 2.440 5.543
2011-08-01 2.400 6.223
2011-05-02 2.400 6.049
2011-02-07 2.400 6.112
2010-11-01 2.400 5.547
2010-08-02 2.360 5.832
2010-05-03 2.360 5.482
2010-02-08 2.360 5.508
2009-11-02 2.360 6.207
2009-08-03 2.320 6.338
2009-05-04 2.320 6.914
2009-02-09 2.320 7.933
2008-11-03 2.320 5.432

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Mercury General's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Mercury General's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mercury General afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mercury General has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mercury General's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gabe Tirador
COMPENSATION $1,368,503
AGE 54
TENURE AS CEO 12.5 years
CEO Bio

Mr. Gabriel Tirador, also known as Gabe, has been the President of Mercury General Corporation since October 2001 and has been its Chief Executive Officer since January 1, 2007. Mr. Tirador serves as President and Chief Executive Officer at Mercury Casualty Company. He is a Co-owner at Sandra Maria & Gabriel Tirador Trust. Mr. Tirador served as Chief Operating Officer of Mercury General Corporation since October 2001. He served as Mercury General Corp.'s assistant Controller from March 1994 to December 1996. He served as the Vice President and Controller of the Automobile Club of Southern California from January 1997 to February 1998. He rejoined Mercury General Corp. in February 1998 and served as its Vice President and Chief Financial Officer since February 1998 until October 2001. Mr. Tirador has 20 years experience in the property and casualty insurance industry. He has been a Director of Mercury General Corporation since 2003. Mr. Tirador is a Certified Public Accountant.

CEO Compensation
  • Gabe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Gabe to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Mercury General management team in years:

11.5
Average Tenure
53.5
Average Age
  • The average tenure for the Mercury General management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ted Stalick

TITLE
Senior VP & CFO
COMPENSATION
$753K
AGE
56
TENURE
17.8 yrs

Christopher Graves

TITLE
VP & Chief Investment Officer
COMPENSATION
$719K
AGE
53
TENURE
21.5 yrs

Gabe Tirador

TITLE
President
COMPENSATION
$1M
AGE
54
TENURE
12.5 yrs

Abby Hosseini

TITLE
Chief Information Officer & VP
AGE
59

Erik Thompson

TITLE
Vice President of Advertising & Public Relations
AGE
50
TENURE
1.8 yrs

Brandt Minnich

TITLE
VP & Chief Marketing Officer
AGE
52
TENURE
10.5 yrs

Heidi Sullivan

TITLE
VP & Chief Human Capital Officer
AGE
50

Randall Petro

TITLE
VP & Chief Claims Officer
AGE
55
TENURE
4.3 yrs

Victor Joseph

TITLE
VP & Chief Underwriting Officer
AGE
32
TENURE
2 yrs

Judy Walters

TITLE
VP of Corporate Affairs & Secretary
AGE
72
TENURE
37.5 yrs
Board of Directors Tenure

Average tenure and age of the Mercury General board of directors in years:

2.4
Average Tenure
61
Average Age
  • The average tenure for the Mercury General board of directors is less than 3 years, this suggests a new board.
Board of Directors

George Joseph

TITLE
Chairman of the Board
COMPENSATION
$1M
AGE
97
TENURE
58.5 yrs

Gabe Tirador

TITLE
President
COMPENSATION
$1M
AGE
54
TENURE
16.5 yrs

Martha Marcon

TITLE
Lead Independent Director
COMPENSATION
$101K
AGE
70
TENURE
2.2 yrs

Jim Ellis

TITLE
Director
COMPENSATION
$55K
AGE
72
TENURE
5.4 yrs

Joshua Little

TITLE
Director
COMPENSATION
$69K
AGE
48
TENURE
2.4 yrs

Ramona Cappello

TITLE
Director
COMPENSATION
$12K
AGE
59
TENURE
0.8 yrs

George Braunegg

TITLE
Director
COMPENSATION
$12K
AGE
61
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Mercury General individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. Jun 19 Sell Charles Toney Individual 14. Jun 19 14. Jun 19 -600 €53.87 €-32,320
15. Mar 19 Buy George Braunegg Individual 14. Mar 19 14. Mar 19 500 €45.00 €22,500
06. Nov 18 Sell Michael Curtius Individual 06. Nov 18 06. Nov 18 -400 €53.41 €-21,363
X
Management checks
We assess Mercury General's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mercury General has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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, fire, and umbrella insurance. Its automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners’ insurance products cover dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents, 100% owned insurance agents, and direct channels 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.

Details
Name: Mercury General Corporation
MCG
Exchange: DB
Founded: 1961
$3,155,084,822
55,352,577
Website: http://www.mercuryinsurance.com
Address: Mercury General Corporation
4484 Wilshire Boulevard,
Los Angeles,
California, 90010,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MCY Common Stock New York Stock Exchange US USD 20. Nov 1985
DB MCG Common Stock Deutsche Boerse AG DE EUR 20. Nov 1985
Number of employees
Current staff
Staff numbers
4,400
Mercury General employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 21:50
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.