Mercury General Corporation MCY

FinancialsInsuranceUnited States of America

Last close 102.71 USD on Nov 3, 2026, +10.3% year to date

Quant rating

Quant rating A Rank 52 of 799 in Financials

Growth C 359 of 799
Valuation A 8 of 799
Quality C 465 of 799
Revisions A 38 of 799
Momentum B 258 of 799

Wall Street consensus Buy (2.00)Average target 120.00 USD +16.8%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 5.7B
Enterprise value: 4.9B
52-week range: 76.59 – 112.81
3-year range: 35.71 – 112.81
Dividend yield: 1.22%
Beta (5 years): 0.94
Shares outstanding: 55.4M
Next earnings: Nov 3, 2026

About the company

Mercury General Corporation is an insurance holding company. The Company is primarily engaged in writing personal automobile insurance and provides related property and casualty insurance products to its customers through 12 subsidiaries in approximately 11 states, principally in California. It writes about homeowners, commercial automobiles, commercial property, mechanical protection, and umbrella insurance. Its automobile coverage includes collision, property damage, bodily injury (BI), comprehensive, personal injury protection (PIP), underinsured, and uninsured motorists, and other hazards. Its homeowner's coverage includes dwelling, liability, personal property, and other coverage. It offers standard, non-standard, and preferred private passenger automobile insurance in over 11 states. The Company also offers homeowners insurance in 10 states, commercial automobile insurance in 4 states, and mechanical protection insurance in most states.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	5,532	5,107	4,294	3,963	3,752	–
Revenue growth	8.3%	18.9%	8.4%	5.6%	5.3%	9.2%
EPS (basic, normalized)	7.90	7.19	0.30	−2.30	2.88	–
EPS growth	9.9%	2,296.7%	–	–	–	–
Gross margin	–	–	–	–	–	–
Net margin	9.0%	8.5%	2.1%	−14.1%	6.2%	2.4%
ROE	–	–	–	–	–	–

Balance sheet, last quarter
Cash & short-term investments (mil)	–
Current ratio	–
Long-term debt (mil)	944
Net debt (mil)	–
Total equity (mil)	2,805
Net debt / equity	–

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			Book value per share			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	P/B	Mean est.	Growth	P/E
2025 actual	5,532	+8.3%	0.9x	43.64	+26.1%	2.4x	7.90	+9.9%	13.0x
2026	6,513	+17.7%	0.8x	57.09	+30.8%	1.8x	13.25	+67.7%	7.8x
2027	6,908	+6.1%	0.7x	63.73	+11.6%	1.6x	11.75	−11.3%	8.7x
2028	–	–	–	–	–	–	11.50	−2.1%	8.9x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	6,513	0.0%	+1.8%	+4.4%	13.25	0.0%	+11.6%	+32.5%
2027	6,908	0.0%	+2.1%	+4.9%	11.75	0.0%	+5.6%	+34.3%
2028	–	–	–	–	11.50	0.0%	+4.5%	–

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	1,274	1,305	1,530	1,366	1,394	1,478	1,585	1,536	1,540	1,682
Sales mean (mil)	1,236	1,327	1,368	1,400	1,475	1,420	1,485	1,509	1,455	1,589
Surprise	+3.1%	−1.7%	+11.9%	−2.4%	−5.5%	+4.0%	+6.8%	+1.8%	+5.8%	+5.8%
EPS reported	0.78	1.09	2.54	2.78	−2.29	2.67	3.86	3.66	3.50	3.52
EPS mean	0.12	0.80	1.70	1.12	−3.25	1.65	2.15	2.56	2.15	2.52
Surprise	+524.0%	+36.3%	+49.4%	+148.2%	+29.5%	+61.8%	+79.5%	+43.0%	+62.8%	+39.4%

Peer comparison Insurance

Peers in the same industry group, by market capitalization
Company	Market cap	ROE	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 P/B	FY2 P/B
MCY Mercury General Corporation	5.7B	–	9.0%	2.01x	7.8x	8.7x	1.8x	1.6x
PGR The Progressive Corporation	132.7B	38.2%	12.9%	3.85x	12.4x	14.1x	3.9x	3.4x
TRV The Travelers Companies, Inc.	81.0B	20.8%	12.8%	2.79x	10.8x	12.7x	2.5x	2.3x
ALL Allstate Corp	66.1B	37.2%	15.0%	1.97x	7.3x	9.3x	2.0x	1.7x
ACGL Arch Capital Group Ltd.	35.2B	16.4%	22.7%	1.53x	10.6x	10.8x	1.6x	1.4x
WRB W. R. Berkley Corporation	27.9B	19.1%	12.1%	2.90x	15.3x	15.5x	2.8x	2.5x
Mean		26.3%	14.1%	2.51x	10.7x	11.9x	2.4x	2.1x
Median		20.8%	12.8%	2.40x	10.7x	11.8x	2.2x	2.0x

Technical analysis

1M+0.4%
3M−3.9%
1Y+36.6%
3Y+198.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Mercury General Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Premiums earned	5,532	5,107	4,294	3,963	3,752	3,564
Other revenue	460	369	336	−320	241	221
Total revenue	5,992	5,476	4,630	3,643	3,993	3,785
Losses, benefits and adjustments	3,963	3,685	3,518	3,362	2,760	2,395
Amortization of policy acquisition costs	943	858	709	655	633	628
Selling, general & administrative expenses	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Other operating expenses	394	327	280	280	283	286
Operating income	692	606	124	−653	316	476
Net interest income (expense)	−28.6	−30.8	−24.2	−17.2	−17.1	−17.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	664	575	99.4	−671	299	459
Provision for taxes	123	107	3.1	−158	51.4	83.9
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	541	468	96.3	−513	248	375
Extraordinary items	–	–	–	–	–	–
Net income	541	468	96.3	−513	248	375
Basic weighted average shares (mil)	55.4	55.4	55.4	55.4	55.4	55.4
Diluted weighted average shares (mil)	55.4	55.4	55.4	55.4	55.4	55.4
Basic EPS, normalized	7.90	7.19	0.30	−2.30	2.88	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Mercury General Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Total receivables	86.5	62.1	25.6	11.4	7.6	10.7
Prepaid expenses	–	–	–	–	–	–
Property, plant & equipment	161	155	169	196	227	223
Goodwill	42.8	42.8	42.8	42.8	42.8	42.8
Intangibles	6.8	7.7	8.3	9.2	10.3	11.3
Insurance receivables	746	691	602	566	616	589
Long-term investments	6,580	6,076	5,229	4,911	5,143	4,729
Note receivable	–	–	–	–	–	–
Other long-term assets	30.6	45.9	33.0	42.9	–	–
Deferred policy acquisition costs	360	335	294	266	258	247
Other assets	233	175	150	179	133	127
Total assets	9,561	8,311	7,103	6,514	6,772	6,328
Liabilities
Accounts payable	449	242	175	152	169	194
Payable/accrued	–	–	–	–	–	–
Accrued expenses	12.3	13.6	14.2	21.9	34.6	43.8
Policy liabilities	5,889	5,192	4,521	4,131	3,746	3,397
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	–	–	–	–	–	–
Long-term debt	576	577	577	402	376	375
Minority interest	–	–	–	–	–	–
Other liabilities	217	340	268	286	306	285
Total liabilities	7,143	6,364	5,555	4,992	4,632	4,296
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	99.7	99.7	98.9	98.9	98.9	99.0
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	2,318	1,847	1,449	1,423	2,041	1,934
Treasury stock	–	–	–	–	–	–
Other equity	0	0	0	0	0	0
Total equity	2,417	1,947	1,548	1,522	2,140	2,033
Total liabilities & shareholders' equity	9,561	8,311	7,103	6,514	6,772	6,328

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Mercury General Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	541	468	96.3	−513	248	375
Depreciation, depletion & amortization	50.6	31.9	44.9	74.2	67.8	54.6
Deferred taxes	–	–	–	–	–	–
Non-cash items	−2.7	−13.7	−5.9	–	0.1	0.1
Changes in working capital	498	551	318	791	186	176
Cash from operations	1,087	1,037	453	353	502	606
Investing activities
Capital expenditures	−58.4	−46.1	−36.8	−35.5	−41.4	−40.0
Other investing cash flows	−362	−751	−259	−281	−332	−371
Cash from investing	−420	−797	−295	−316	−374	−411
Financing activities
Financing cash flow items	–	–	–	–	–	–
Cash dividends paid	−70.3	−70.3	−70.3	−105	−140	−140
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−1.4	−0.8	174	23.5	−0.6	−0.6
Cash from financing	−71.7	−71.1	104	−82.0	−141	−140
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	595	169	261	−45.8	−12.9	54.1
Free cash flow	1,029	991	416	317	460	566

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 3, 2026 after market close.