Mercury General Corporation (MCY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Mercury General Corporation stock (MCY) is currently trading at $88.60. Mercury General Corporation PE ratio is 8.89. Mercury General Corporation PS ratio (Price-to-Sales) is 0.80. Analyst consensus price target for MCY is $110.00. WallStSmart rates MCY as Buy.
- MCY PE ratio analysis and historical PE chart
- MCY PS ratio (Price-to-Sales) history and trend
- MCY intrinsic value — DCF, Graham Number, EPV models
- MCY stock price prediction 2025 2026 2027 2028 2029 2030
- MCY fair value vs current price
- MCY insider transactions and insider buying
- Is MCY undervalued or overvalued?
- Mercury General Corporation financial analysis — revenue, earnings, cash flow
- MCY Piotroski F-Score and Altman Z-Score
- MCY analyst price target and Smart Rating
Mercury General Corporation
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MCY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Mercury General Corporation (MCY)
MCY trades at a significant discount to its Graham intrinsic value of $457.24, offering a 80% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Mercury General Corporation (MCY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, price/sales. Overall metrics suggest strong investment potential with favorable risk/reward.
Mercury General Corporation (MCY) Key Strengths (6)
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 100.90% year-over-year
Every $100 of equity generates $25 in profit
Good growth relative to its price
Trading at 1.99x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Mercury General Corporation (MCY) Areas to Watch (4)
Thin profit margins with limited profitability
Decent operational efficiency, solid but not exceptional
Solid revenue growth at 14.10% per year
Moderate institutional interest at 47.32%
Mercury General Corporation (MCY) Detailed Analysis Report
Overall Assessment
This company scores 75/100 in our Smart Analysis, earning a B+ grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.7/10) while 4 fall into concern territory (avg 5.5/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on Price/Sales, EPS Growth, Return on Equity. Valuation metrics including PEG Ratio (1.11), Price/Sales (0.80), Price/Book (1.99) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 24.80%. Growth metrics are encouraging with EPS Growth at 100.90%.
The Bear Case
The primary concerns are Profit Margin, Operating Margin, Revenue Growth. Growth concerns include Revenue Growth at 14.10%, which may limit upside. Profitability pressure is visible in Operating Margin at 16.70%, Profit Margin at 9.03%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Profit Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 24.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 14.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Price/Sales and EPS Growth makes a compelling case at current levels. The key risk is Profit Margin, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B+ grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MCY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MCY's Price-to-Sales ratio of 0.80x sits near its historical average of 0.83x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 4% below its historical high of 0.84x set in Mar 2026, and 0% above its historical low of 0.8x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Mercury General Corporation (MCY) · FINANCIAL SERVICES › INSURANCE - PROPERTY & CASUALTY
The Big Picture
Mercury General Corporation operates as a stable business with moderate growth and solid fundamentals. Revenue reached 6.0B with 14% growth year-over-year. Profit margins are thin at 9.0%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 2480.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 274M in free cash flow and 288M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Mercury General Corporation push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 144.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive moves, and regulatory changes that could impact Mercury General Corporation.
Bottom Line
Mercury General Corporation offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Mercury General Corporation(MCY)
NYSE
FINANCIAL SERVICES
INSURANCE - PROPERTY & CASUALT...
USA
Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.