NYSE
MCY
Last Price
US $106.62
KEY FIGURES
MKT CAP
$6.0B
EPS
TTM
$15.16
PEG
TTM
0.04x
P/E
TTM
7.08x
P/S
TTM
0.99x
YIELD
1.18%
GROWTH
Revenue Y/Y
9.63%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $106.62
221.42%
Default assumptions
EBITDA Multiple
Fair Value
Market $106.62
3.16%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Mercury General Corporation cash flow to debt ratio of 185.26% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Mercury General Corporation's free cash flow has increased 3.81% from $990.98M last year to $1.03G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Mercury General Corporation's debt to equity ratio is 0.23, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Mercury General Corporation's debt has decreased relative to shareholder equity from 0.30 last year to 0.23 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Mercury General Corporation has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Mercury General Corporation's interest coverage ratio of 36.87 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Mercury General Corporation's profit margin has increased (60.09%) in the last year from 8.55% to 13.68%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Mercury General Corporation's short-term liabilities of $6.37G exceed its short-term assets of $2.67G, signaling financial risk
Increasing performance - ROA.
Mercury General Corporation's return on assets of 8.51% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Mercury General Corporation's return on equity of 36.48%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Mercury General Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Mercury General Corporation had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Mercury General Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Mercury General Corporation has a free cash flow yield of 17.28%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Mercury General Corporation's yearly earnings has increased 15.63% since last year from $467.95M to $541.09M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Mercury General Corporation's yearly revenue has increased 9.44% since last year from $5.48G to $5.99G, signaling increasing performance
Increasing performance - ROIC.
ROIC 24.69% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Mercury General Corporation's 3-year revenue CAGR of 18.04% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Mercury General Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Mercury General Corporation had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Mercury General Corporation is undervalued relative to its fair value price of 342.70 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Mercury General Corporation has an earnings yield of 14.11%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Mercury General Corporation is undervalued relative to its fair value price of 109.99 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Mercury General Corporation has an EV/EBITDA ratio of 4.52x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Mercury General Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Mercury General Corporation has a price-to-book ratio of 2.30x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Mercury General Corporation has a price-to-sales ratio of 0.97x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
36.48%
Return on equity
ROIC: 24.69%
Valuation History
7.1X
Price to Earnings
EV/EBITDA: 4.5X
Cash flow
Profit margin
7.12%
(FY vs FY)
Cash flow Y/Y
12.71%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.