# Mercury General Corporation (MCY) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Insurance. Price $104.53, market value $5.8 billion.

## Valuation
- **P/E (trailing): 6.2×** (5-yr avg 12.0×, 3-yr avg 12.6×). Mercury General Corporation trades at 6.2× trailing earnings, well below its own five-year average of 12.0×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 8.5×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.55**. A PEG of 0.55 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 21.8%** (5-yr avg 21.0%). Free cash flow equals 21.8% of the market value, in line with its five-year average of 21.0%. Above 5% is generally attractive.
- **Earnings yield: 16.2%**. The inverse of the P/E: 16.2% of the price is earned each year.

## Profitability
- **Net margin: 9.0%**. 9.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.4%**. 22.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 9.8%**. Each dollar of assets produces 9.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 9.4%** (3-yr 18.0%/yr, 5-yr 9.6%/yr). Revenue grew 9.4% over the last year, against 9.6% a year compounded over five years.
- **EPS growth (1 yr): 15.6%** (5-yr 7.6%/yr). Earnings per share rose 15.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 48.0%/yr**. Free cash flow has compounded at 48.0% a year over three years.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.21%** ($1.27 per share, trailing). Mercury General Corporation yields 1.21%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 13%**. 13% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): -12.8%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: strong_buy** (1 analyst). 1 analysts cover Mercury General Corporation; the consensus is strong_buy, with an average price target of $120.00 (+15% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 34.4%** (YTD 11.9%, 3-mo 3.3%). The shares are up 34.4% over twelve months including dividends.
- **From 52-week high: -7.5%** (40.7% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.12** (volatility 26%). Beta of 0.12 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MCY · Page: https://foliofundamentals.com/stocks/mcy

Not investment advice.