Mercury General
Market Cap
US$2.6b
Last Updated
2020/11/26 23:10 UTC
Data Sources
Company Financials +
Executive Summary
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 9.8% per year for the next 3 years
Snowflake Analysis
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
Stable Share Price: MCY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MCY's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
MCY
1.7%
US Insurance
2.1%
US Market
1 Year Return
-6.3%
MCY
-5.4%
US Insurance
19.8%
US Market
Return vs Industry: MCY matched the US Insurance industry which returned -5.4% over the past year.
Return vs Market: MCY underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| MCY | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 1.7% | 2.1% |
| 30 Day | 15.1% | 14.0% | 8.1% |
| 90 Day | 2.7% | 10.3% | 6.0% |
| 1 Year | -0.8%-6.3% | -2.8%-5.4% | 22.5%19.8% |
| 3 Year | -1.9%-15.8% | 10.4%2.4% | 46.5%36.8% |
| 5 Year | 15.7%-9.2% | 51.2%32.4% | 96.9%75.3% |
Long-Term 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
6 days ago | Simply Wall St
Mercury General Corporation's (NYSE:MCY) Stock's On An Uptrend: Are Strong Financials Guiding The Market?3 weeks ago | Simply Wall St
How Much Is Mercury General Corporation (NYSE:MCY) Paying Its CEO?1 month ago | Simply Wall St
Who Has Been Buying Mercury General Corporation (NYSE:MCY) Shares?Valuation
Is Mercury General undervalued compared to its fair value and its price relative to the market?
10.68x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCY ($46.22) is trading above our estimate of fair value ($37.92)
Significantly Below Fair Value: MCY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCY is good value based on its PE Ratio (10.7x) compared to the US Insurance industry average (14.4x).
PE vs Market: MCY is good value based on its PE Ratio (10.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: MCY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MCY is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1x).
Next Steps
Future Growth
How is Mercury General forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-9.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCY's earnings are forecast to decline over the next 3 years (-9.8% per year).
Earnings vs Market: MCY's earnings are forecast to decline over the next 3 years (-9.8% per year).
High Growth Earnings: MCY's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MCY's revenue (1.1% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MCY's revenue (1.1% 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 MCY's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Mercury General performed over the past 5 years?
24.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCY has high quality earnings.
Growing Profit Margin: MCY's current net profit margins (6.5%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: MCY's earnings have grown significantly by 24.2% per year over the past 5 years.
Accelerating Growth: MCY's earnings growth over the past year (15.3%) is below its 5-year average (24.2% per year).
Earnings vs Industry: MCY earnings growth over the past year (15.3%) exceeded the Insurance industry 6%.
Return on Equity
High ROE: MCY's Return on Equity (12.6%) is considered low.
Next Steps
Financial Health
How is Mercury General's financial position?
Financial Position Analysis
Short Term Liabilities: MCY's short term assets ($1.3B) do not cover its short term liabilities ($1.6B).
Long Term Liabilities: MCY's short term assets ($1.3B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: MCY's debt to equity ratio (18.8%) is considered satisfactory.
Reducing Debt: MCY's debt to equity ratio has increased from 16.2% to 18.8% over the past 5 years.
Debt Coverage: MCY's debt is well covered by operating cash flow (153.5%).
Interest Coverage: MCY's interest payments on its debt are well covered by EBIT (17.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Mercury General current dividend yield, its reliability and sustainability?
5.45%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MCY's dividend (5.45%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: MCY's dividend (5.45%) is in the top 25% of dividend payers in the US market (4.05%)
Stability and Growth of Payments
Stable Dividend: MCY's dividends per share have been stable in the past 10 years.
Growing Dividend: MCY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.2%), MCY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCY's dividends in 3 years are forecast to be covered by earnings (71.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.8yrs
Average management tenure
CEO
Gabe Tirador (55 yo)
13.83yrs
Tenure
US$1,706,295
Compensation
Mr. Gabriel Tirador, also known as Gabe, has been the President of California Automobile Insurance Company and Mercury General Corporation since October 2001 and has been its Chief Executive Officer since ...
CEO Compensation Analysis
Compensation vs Market: Gabe's total compensation ($USD1.71M) is below average for companies of similar size in the US market ($USD5.15M).
Compensation vs Earnings: Gabe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 59.83yrs | US$1.74m | 33.98% $ 869.4m | |
| President | 13.83yrs | US$1.71m | 0.079% $ 2.0m | |
| Senior VP & CFO | 19.08yrs | US$996.75k | 0.0085% $ 218.5k | |
| VP & Chief Investment Officer | 22.83yrs | US$784.76k | 0.012% $ 305.0k | |
| VP & Chief Information Officer | no data | US$554.45k | 0.0014% $ 34.8k | |
| Vice President of Advertising & Public Relations | 3.08yrs | no data | no data | |
| VP & Chief Marketing Officer | 11.83yrs | no data | 0.0049% $ 124.9k | |
| VP & Chief Human Capital Officer | no data | no data | no data | |
| VP & Chief Claims Officer | 5.67yrs | no data | no data | |
| VP & Chief Underwriting Officer | 3.33yrs | no data | no data | |
| VP & Chief Product Officer | no data | no data | 0.0016% $ 41.7k | |
| VP of Corporate Affairs & Secretary | 38.83yrs | no data | no data |
12.8yrs
Average Tenure
54.5yo
Average Age
Experienced Management: MCY's management team is seasoned and experienced (12.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 59.83yrs | US$1.74m | 33.98% $ 869.4m | |
| President | 13.83yrs | US$1.71m | 0.079% $ 2.0m | |
| Independent Director | 6.75yrs | US$61.00k | no data | |
| Independent Director | 3.75yrs | US$72.00k | 0.0028% $ 71.6k | |
| Lead Independent Director | 3.5yrs | US$96.00k | no data | |
| Independent Director | 2.08yrs | US$66.00k | no data | |
| Independent Director | 2.08yrs | US$62.00k | 0.0045% $ 115.7k |
3.8yrs
Average Tenure
62yo
Average Age
Experienced Board: MCY's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCY insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$2.559b
- Shares outstanding: 55.36m
- 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. It also writes homeowners, commercial automobile, commercial property, me...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:10 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.