Mercury General Corporation (MCY) AI Stock Analysis

Founded in 1961 and based in Brea, California, Mercury General Corporation primarily writes personal automobile insurance across the United States. Its automotive coverage includes collision, property damage, bodily injury, comprehensive, personal injury protection, and uninsured motorist protection. In addition to personal auto insurance, the company offers homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Mercury General distributes its policies through a broad network of independent agents and insurance agencies, complemented by direct online sales channels.

Mercury General's revenue expanded at a five-year CAGR of 9.6% from FY2020 to FY2025. Annual revenue grew from $3.99B in FY2021 to $5.99B in FY2025, rebounding after an 8.8% decline in FY2022 to $3.64B. Operating margin turned from -18.4% in FY2022 to 11.1% in FY2025, while net income recovered from a loss of -$512.7M to $541.1M over the same period. For the trailing twelve months, revenue reached $6.34B, with an operating margin of 19.9% and diluted EPS of $16.92. In the latest quarter ended June 30, 2026, revenue increased 13.8% year-over-year, and earnings climbed 58.3%.

As of June 30, 2026, Mercury General held $2.07B in cash and short-term investments against total debt of $962.1M, yielding a net cash position of $1.11B. Shareholders' equity stood at $2.84B, resulting in a debt-to-equity ratio of 0.34 and a current ratio of 856.31. In FY2025, the company generated $1.09B in operating cash flow and invested $58.4M in capital expenditures, producing free cash flow of $1.03B. MCY returned capital to shareholders via $70.3M in dividend payments, while the five-year share count change was 0.0%.

At $102.80, Mercury General trades at a trailing P/E of 6.1x and a forward P/E of 19.8x, compared to medians of 12.1x and 10.8x for US-listed Financial Services peers. Its price-to-sales multiple is 0.9x versus the peer median of 3.2x, and its enterprise-value-to-revenue stands at 0.7x. Over the past year, MCY shares rose 32.5%, outpacing the 16.8% return for the S&P 500 (SPY). Over five years, the stock returned 115.5% compared to 83.0% for the S&P 500.

Mercury General pays a quarterly dividend totaling $1.27 annually per share, which corresponds to a 1.24% dividend yield at the last close. The payout ratio stands at 8.8%, and the company has paid dividends for 41 consecutive years. Its five-year annualized dividend growth rate was -12.8%, and the last ex-dividend date was September 10, 2026.

One analyst covers Mercury General, rating the stock a Strong Buy with a mean price target of $120.00, representing a 16.7% upside to the last close of $102.80. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $13.50 (up 70.9%) on revenue of $6.26B. For the next fiscal year, expectations are for EPS of $12.25 on revenue of $6.68B. The company has beaten EPS expectations in all of the last 4 quarters, and its next earnings report is scheduled for November 3, 2026.

This page is an AI-written research summary of Mercury General Corporation (MCY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MCY income statement, MCY balance sheet, MCY key metrics, MCY analyst forecast, MCY chart. See the MCY stock overview for the latest quote and news.