NYSE:MCY

Stock Analysis Report

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

MCYIndustryMarket
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 Year2.6%-2.0%9.7%7.1%1.6%-0.7%
3 Year14.3%-0.5%44.1%33.2%40.0%30.9%
5 Year27.4%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

Valuation

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%).


Next Steps

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).


Next Steps

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.


Next Steps

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).


Next Steps

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

SellUS$36,27017 Jun 19
Charles Toney
EntityIndividual
Shares600
Max PriceUS$60.45
BuyUS$25,43015 Mar 19
George Braunegg
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$50.86
SellUS$24,38206 Nov 18
Michael Curtius
EntityIndividual
Shares400
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCYNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1985
MCGDB (Deutsche Boerse AG)YesCommon StockDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:42
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.