Reading the tape
NYSE: MCY
Mercury General Corporation
Financial Services · Insurance - Property & Casualty
Market Cap
$5.35B
52w High
$100.06
52w Low
$54.00
P/E
9.88
Volume
65.46K
Outstanding Shares
55.39M
Price vs Fundamentals
Why The Stock Is Moving
Fundamentals are supporting the moveModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: 65.59%Revenue (TTM): 9.44%FCF (TTM): 3.81%P/FCF: 33rd pct
What changed
The stock rose 65.59% over the last year. Revenue grew 9.44% over the trailing twelve months. Operating margin moved from 10.5% to 11.07%. Free cash flow grew 3.81% over the trailing twelve months.
What the market seems to be pricing
The stock move broadly lines up with stronger business momentum, and the shares are still only around the 33rd percentile of their historical P/FCF range.
What would invalidate this read
Operating margin is at 11.07%. Revenue grew 9.44% — this thesis depends on that trajectory holding. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.
Company profile
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.
CEOGabriel Tirador
SectorFinancial Services
IndustryInsurance - Property & Casualty
Employees4,200
IPO dateNov 20, 1985
Valuation
Forward P/E—
EV/EBITDA5.85
Enterprise value$4.49B
Price / Book2.21
Stock splits
Oct 10, 1997↑ Forward
Every 1 shares became 2
Sep 14, 1992↑ Forward
Every 1 shares became 2
Profitability & growth
Standard profitability metrics can be misleading for financial/insurance companies. GAAP requires unrealized investment gains/losses in net income (affecting ROE), and margins are blended across diverse business segments.
Revenue growth12.41%
Gross margin33.87%▲98.79%vs FY2024
Operating margin11.07%▲5.48%vs FY2024
ROE22.38%▼6.89%vs FY2024
Analyst consensus
RatingHold
Target price$90.00▼6.79%
1
Buy
5
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 5, 2026
Q2 FY26 · EPS est $2.15 · Revenue est $1.46B
View
Dividends
$1.27/shareQuarterlySafeMCY pays a dividend with a 1.32% dividend yield, covered 14.6× by free cash flow.
Dividend Yield
1.32%
Annual Div / Share
$1.27
5yr CAGR
-12.84%
Dividend has been cut
Payout Ratio
13%
Safe
Dividend Growth Rate
3yr CAGR
-7.17%
5yr CAGR
-12.84%
10yr CAGR
-6.45%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$1.27+0.0%
2024$1.27+0.0%
2023$1.27-20.0%
2022$1.59-37.4%
2021$2.54+0.4%
2020$2.52+0.4%
2019$2.52+0.4%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$13/yr
$1/mo
In 5 yrs
$13/yr
$1/mo
In 10 yrs
$13/yr
$1/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$13/yr $1/mo | $13/yr $1/mo | $13/yr $1/mo |
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 14.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
Dividend has been reduced
The 5-year dividend CAGR of -12.84% is negative, indicating the payout has been cut over this period.