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Mercury General Corporation (MCY) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Mercury General Corporation

MCYMarket cap $5.67BPrice $102.3

Country🇺🇸United States

SectorFinancials

IndustryInsurance

Sells auto and home insurance, with California drivers making up the bulk of its business. Mercury built its whole empire betting on one state's massive car insurance market before finally expanding nationwide.

In Bastion Portfolios?

52W Return+29%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+18%9

Revenue Forecast

Rev CAGR (1y)+5%4

Rev CAGR (3y)+6%4

Rev CAGR (5y)+4%4

Earnings Forecast

EPS Growth Y+1+60%9

EPS Growth Y+2-9%3

EPS Growth Y+3-0%3

Quality

Margins

EBIT Margin19%7

Net Income Margin15%7

Free Cash Flow Margin20%8

Debt

Net Debt/EBITDA-0.610

Efficiency

ROE39%10

ROA10%8

Earnings Stability55

GEAR+VERY STRONG96

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)99

P/E Ratio (Forward 3y)89

P/BV2.07

EV Multiples

EV/EBITDA Fwd09

EV/EBIT Fwd09

Yield

Free Cash Flow Yield0.0%10

Dividend Yield1.2%4

Momentum

Short term

1 month return-0%8

3 month return-7%4

YTD return+10%6

Mid term

Price vs 52wHigh91%8

1 year return+22%7

Long term

3 year return+282%10

5 year return+111%8

Risk Shield

Price Risk

Beta0.95

Volatility26%8

Free Cash Flow

Free Cash Flow Margin20%8

Free Cash Flow Yield0.0%10

Quality

ROCE17%8

Earnings Stability55

Net Debt/EBITDA-0.610

02Growth

Is it actually growing, and how fast?

MCYMercury General

Revenue FY25$5.5B

GROWTH RATING↗

AVERAGE39 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+18%9

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+60%9

EPS growth, FY27E-9%3

EPS growth, FY28E-0%3

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 18%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

WATCH

A mid-pack grower, ahead of 39% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 18%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Earnings are set to fall even as revenue grows (EPS about -0%/yr vs revenue 6%/yr).

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: earnings are forecast to fall.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG79 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-0%8

3-month return-7%4

YTD return+10%6

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+22%7

3-year return+282%10

5-year return+111%8

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +282% over three years and +111% over five, ahead of 80% of the market.

It's up 22% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+0%).

WATCH

Returns sit at the market level over three months (-7%) and so far this year (+10%).

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Compounder

Dependable multi-year returns and the stock sits near its highs. A reliable trend, if not the single hottest name in the market.

04Value

Are you paying a fair price for it?

Stop guessing on Mercury General Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

MCYMercury General

Revenue FY25$5.5B

GROWTH RATING↗

AVERAGE39 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+18%9

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+60%9

EPS growth, FY27E-9%3

EPS growth, FY28E-0%3

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 18%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

WATCH

A mid-pack grower, ahead of 39% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 18%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

Earnings are set to fall even as revenue grows (EPS about -0%/yr vs revenue 6%/yr).

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: earnings are forecast to fall.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG79 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-0%8

3-month return-7%4

YTD return+10%6

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+22%7

3-year return+282%10

5-year return+111%8

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +282% over three years and +111% over five, ahead of 80% of the market.

It's up 22% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+0%).

WATCH

Returns sit at the market level over three months (-7%) and so far this year (+10%).

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Compounder

Dependable multi-year returns and the stock sits near its highs. A reliable trend, if not the single hottest name in the market.

04Value

Are you paying a fair price for it?

Stop guessing on Mercury General Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community