Mercury General
Market Cap
US$2.9b
Last Updated
2019/08/20 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.
Snowflake
Fundamentals
6 star dividend payer with proven track record.
Similar Companies
Share Price & News
How has Mercury General's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-3.8%
NYSE:MCY
-1.1%
US Insurance
0.2%
US Market
1 Year Return
-2.0%
NYSE:MCY
7.1%
US Insurance
-0.7%
US Market
MCY underperformed the Insurance industry which returned 8.8% over the past year.
MCY underperformed the Market in United States of America which returned 0.3% over the past year.
Share holder returns
| MCY | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | -1.1% | 0.2% |
| 30 Day | -17.0% | -3.0% | -2.7% |
| 90 Day | -7.9% | 0.8% | 1.6% |
| 1 Year | 2.6%-2.0% | 9.7%7.1% | 1.6%-0.7% |
| 3 Year | 14.3%-0.5% | 44.1%33.2% | 40.0%30.9% |
| 5 Year | 27.4%1.1% | 63.8%44.3% | 53.8%36.8% |
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
3 days ago | Simply Wall St
How Much is Mercury General Corporation's (NYSE:MCY) CEO Getting Paid?3 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out Mercury General (NYSE:MCY) Before It's Too Late1 month ago | Simply Wall St
Here's Why Mercury General (NYSE:MCY) Can Manage Its Debt ResponsiblyValuation
Is Mercury General undervalued based on future cash flows and its price relative to the stock market?
14.81x
Price to Earnings (PE) ratio
Intrinsic Value Based on Future Cash Flows
Mercury General's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Mercury General's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Price Based on Earnings
Mercury General is good value based on earnings compared to the US Insurance industry average.
Mercury General is good value based on earnings compared to the United States of America market.
Price Based on Expected Growth
Mercury General earnings are not expected to grow next year, we can't assess if its growth is good value.
Price Based on Value of Assets
Mercury General is overvalued based on assets compared to the US Insurance industry average.
Next Steps
Future Growth
How is Mercury General expected to perform in the next 1 to 3 years based on estimates from 3 analysts?
-11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Mercury General's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Mercury General's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Mercury General's revenue growth is positive but not above the United States of America market average.
Mercury General's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Mercury General's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Earnings per Share Growth Estimates
Future Return on Equity
Mercury General is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Past Performance
How has Mercury General performed over the past 5 years?
-7.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
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 (133.6% vs -7.8%)
Mercury General's earnings growth has exceeded the US Insurance industry average in the past year (133.6% vs 4.3%).
Return on Equity
Mercury General has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Mercury General used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
Return on Capital Employed
Mercury General has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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Financial Health
How is Mercury General's financial position?
Financial Position Analysis
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.
Debt to Equity History and Analysis
Mercury General's level of debt (21.1%) 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% vs 21.1% today).
Debt is well covered by operating cash flow (124.4%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 14.2x coverage).
Balance Sheet
Low level of unsold assets.
Debt is covered by short term assets, assets are 3.7x debt.
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Dividend
What is Mercury General's current dividend yield, its reliability and sustainability?
4.79%
Expected Dividend Yield
Upcoming Dividend Payment
Purchase Mercury General before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield and Payments Analysis
Mercury General's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).
Mercury General's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).
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
Dividends paid are covered by earnings (1.4x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
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Management
What is the CEO of Mercury General's salary, the management and board of directors tenure and is there insider trading?
11.6yrs
Average management tenure
CEO
Gabe Tirador (54yo)
12.6yrs
Tenure
US$1,627,049
Compensation
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 Presi ...
CEO Compensation Analysis
Gabe's remuneration is lower than average for companies of similar size in United States of America.
Gabe's compensation has been consistent with company performance over the past year, both up more than 20%.
Management Age and Tenure
11.6yrs
Average Tenure
53.5yo
Average Age
The average tenure for the Mercury General management team is over 5 years, this suggests they are a seasoned and experienced team.
Board Age and Tenure
2.5yrs
Average Tenure
61yo
Average Age
The average tenure for the Mercury General board of directors is less than 3 years, this suggests a new board.
Insider Trading
Mercury General individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Entity | Individual |
| Shares | 600 |
| Max Price | US$60.45 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 500 |
| Max Price | US$50.86 |
| Entity | Individual |
| Shares | 400 |
| Max Price | US$60.95 |
Ownership Breakdown
Management Team
Gabe Tirador (54yo)
President
- Tenure: 12.6yrs
- Compensation: US$1.63m
Judy Walters (72yo)
VP of Corporate Affairs & Secretary
- Tenure: 37.6yrs
Ted Stalick (56yo)
Senior VP & CFO
- Tenure: 17.8yrs
- Compensation: US$753.31k
Christopher Graves (53yo)
VP & Chief Investment Officer
- Tenure: 21.6yrs
- Compensation: US$718.82k
Brandt Minnich (52yo)
VP & Chief Marketing Officer
- Tenure: 10.6yrs
Heidi Sullivan (50yo)
VP & Chief Human Capital Officer
- Tenure: 0.0yrs
Randall Petro (55yo)
VP & Chief Claims Officer
- Tenure: 4.4yrs
Victor Joseph (32yo)
VP & Chief Underwriting Officer
- Tenure: 2.1yrs
Erik Thompson (50yo)
Vice President of Advertising & Public Relations
- Tenure: 1.8yrs
Abby Hosseini (59yo)
Chief Information Officer & VP
- Tenure: 0.0yrs
Board Members
George Joseph (97yo)
Chairman of the Board
- Tenure: 58.6yrs
- Compensation: US$1.26m
Gabe Tirador (54yo)
President
- Tenure: 12.6yrs
- Compensation: US$1.63m
Jim Ellis (72yo)
Director
- Tenure: 5.5yrs
- Compensation: US$54.50k
Joshua Little (48yo)
Director
- Tenure: 2.5yrs
- Compensation: US$69.00k
Martha Marcon (70yo)
Lead Independent Director
- Tenure: 2.3yrs
- Compensation: US$101.00k
Ramona Cappello (59yo)
Director
- Tenure: 0.8yrs
- Compensation: US$12.00k
George Braunegg (61yo)
Director
- Tenure: 0.8yrs
- Compensation: US$12.00k
Company Information
Mercury General Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mercury General Corporation
- Ticker: MCY
- Exchange: NYSE
- Founded: 1961
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$2.901b
- Shares outstanding: 55.35m
- Website: https://www.mercuryinsurance.com
Number of Employees
Location
- Mercury General Corporation
- 4484 Wilshire Boulevard
- Los Angeles
- California
- 90010
- United States
Listings
| 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 |
Biography
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 pro ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/20 23:42 |
| End of Day Share Price | 2019/08/20 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.