-1.60%
-24.81%
-26.09%
-16.51%
24.81%
-8.55%
1.82%
AI Spotlight on MCY
Company Description
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products.Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, fire, and other hazards.
The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia.Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.
Market Data
| Last Price | 49.98 |
| Change Percentage | -1.60% |
| Open | 50.23 |
| Previous Close | 50.8 |
| Market Cap ( Millions) | 2768 |
| Volume | 12286 |
| Year High | 80.72 |
| Year Low | 37.89 |
| M A 50 | 66.11 |
| M A 200 | 61.1 |
Financial Ratios
| FCF Yield | 35.06% |
| Dividend Yield | 2.54% |
| ROE | 33.51% |
| Debt / Equity | 30.82% |
| Net Debt / EBIDTA | -5.95% |
| Price To Book | 1.49 |
| Price Earnings Ratio | 4.96 |
| Price To FCF | 2.85 |
| Price To sales | 0.5 |
| EV / EBITDA | 3.84 |
News
- Jan -30 - Mercury Insurance Offers Essential Winter Car Preparation Tips
- Jan -24 - MERCURY GENERAL CORPORATION TO DISCUSS FOURTH QUARTER 2024 RESULTS AND THE RECENT SOUTHERN CALIFORNIA WILDFIRES ON FEBRUARY 12, 2025
- Jan -22 - MERCURY GENERAL CORPORATION TO REPORT FOURTH QUARTER RESULTS ON FEBRUARY 11, 2025
- Jan -21 - Safety Insurance Vs. Mercury General: A Tale Of Two Insurers
- Jan -20 - Mercury General Corporation Provides Additional Information Regarding Recent Wildfires in Southern California and Its Reinsurance Program
- Jan -17 - Mercury General: Should You Buy The Dip?
- Jan -17 - Mercury Insurance Gives Update on Primary Mission: Helping Policyholders Affected by the Southern California Wildfires
- Jan -16 - Insurance Fallout Of The California Fires
- Jan -16 - California Wildfires, Mercury General's Opportunity Amid Crisis (Rating Upgrade)
- Jan -10 - Mercury General Corporation Provides Preliminary Information Regarding Recent Wildfires in Southern California
- Jan -10 - Mercury General Stock Craters. Why the Insurer Is Bearing the Brunt of the L.A.
- Jan -08 - Mercury Insurance is Ready to Help Victims of the Wildfires in Southern California
- Jan -07 - Mercury Becomes First Major Insurance Company to Return to Paradise California as City's Rebuilding Efforts Gain Momentum
- Jan -03 - 3 Top Stocks With Earnings Acceleration to Buy in 2025
- Dec -27 - Buy These 5 Insurance Stocks That Zoomed Past S&P 500 in 2024
- Dec -24 - 3 P&C Insurance Stocks That Have Gained More Than 50% in 2024
- Dec -18 - Anaheim Ducks Game Day Just Got A Whole Lot More Exciting!
- Dec -16 - Bodily Injury Costs Increase in Arizona, According to Mercury Insurance
- Dec -04 - 4 Growth Stocks From P&C Insurance Space to Enhance Your Portfolio
- Dec -03 - Finding the Best Value Stocks to Buy in December
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Property and Casualty
Expected Growth : 4.78 %
What the company do ?
Mercury General Corporation's Property and Casualty segment offers personal and commercial auto, homeowners, and umbrella insurance products to individuals and businesses.
Why we expect these perspectives ?
Mercury General Corporation's Property and Casualty segment growth of 4.78% is driven by increased premiums from expanded product offerings, strategic partnerships, and geographic expansion. Additionally, favorable underwriting results, improved claims management, and a strong brand reputation contribute to the segment's growth.
Segment n°2 -> Other
Expected Growth : 5.4 %
What the company do ?
Other from Mercury General Corporation refers to the miscellaneous revenue streams, including fees, commissions, and other income not classified under primary business operations.
Why we expect these perspectives ?
Mercury General Corporation's 5.4% growth is driven by increasing premiums, favorable loss reserve development, and a strong investment portfolio. Additionally, the company's expansion into new markets, improved underwriting practices, and cost savings initiatives contribute to its growth. Furthermore, Mercury's diversified product offerings and strong brand recognition also support its growth momentum.
Mercury General Corporation Products
| Product Range | What is it ? |
|---|---|
| Personal Auto Insurance | Provides financial protection against physical damage to vehicles and liability for bodily injury or property damage to others. |
| Commercial Auto Insurance | Covers business-owned vehicles and drivers, protecting against liability and physical damage. |
| Homeowners Insurance | Protects homeowners from financial loss due to damage or destruction of their home and personal property. |
| Umbrella Insurance | Provides additional liability coverage beyond the limits of standard auto or homeowners insurance policies. |
| Mechanical Breakdown Insurance | Covers repairs to vehicles due to mechanical failure, providing protection against costly repair bills. |
Mercury General Corporation's Porter Forces
Threat Of Substitutes
Mercury General Corporation operates in the insurance industry, which has a moderate threat of substitutes. While there are alternative insurance providers, customers may not easily switch due to loyalty programs, policy customization, and regulatory barriers.
Bargaining Power Of Customers
Mercury General Corporation's customers have limited bargaining power due to the company's strong brand reputation, diverse product offerings, and lack of price sensitivity in the insurance industry.
Bargaining Power Of Suppliers
Mercury General Corporation has a diversified supplier base, and suppliers have limited bargaining power due to the company's large scale of operations and ability to negotiate favorable terms.
Threat Of New Entrants
The insurance industry has high barriers to entry, including regulatory hurdles, capital requirements, and established distribution networks, making it difficult for new entrants to compete with Mercury General Corporation.
Intensity Of Rivalry
The insurance industry is highly competitive, with many established players competing for market share. Mercury General Corporation faces intense rivalry from other insurance providers, which can lead to pricing pressures and advertising wars.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 27.82% |
| Debt Cost | 4.24% |
| Equity Weight | 72.18% |
| Equity Cost | 7.89% |
| WACC | 6.88% |
| Leverage | 38.54% |
Mercury General Corporation : Quality Control
Mercury General Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CNA | CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The … |
| RLI | RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, … |
| MKL | Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, the Asia Pacific, and the … |
| WRB | W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline … |
| L | Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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CNA Financial
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1-Year Total Return ->
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RLI
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1-Year Total Return ->
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WR Berkley
A-Score
1-Year Total Return ->
4
Mercury General
A-Score
1-Year Total Return ->
5
Markel
A-Score
1-Year Total Return ->
6
