Mercury General (MCY) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Mercury General

NYSE•Financial Services•Insurance - Property & Casualty

$101.93-0.58(-0.01%)Pre-market

Market Cap

$5.57B

P/E

5.9x

P/S

0.9x

P/B

2.0x

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. It also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. The company's 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, and other coverages. It 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 incorporated in 1961 and is headquartered in Los Angeles, California.

How this company scores

ExcellentMetricSide Score: 92/100

Strongest: Profitability (25/25); weakest: Growth (20/25).

Profitability25/25

Growth20/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality24/25

Strengths

Rising free cash flowStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 5.9x5y range 5.8x – 34.2x

Currently below its 13-quarter median.

P/S · 0.9x5y range 0.6x – 0.9x

Currently near its 20-quarter median.

P/B · 2.0x5y range 1.5x – 2.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Price & Volume

Market Cap $5.57B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.34B
Q. Revenue: $1.68B
TTM EBITDA: $1.26B
TTM Op. Income: $1.16B
Q. Op. Income: $327.33M
TTM Net Income: $936.87M
Q. Net Income: $263.50M
EPS: $4.76
Shares Out.: $55.39M

$6.34B in TTM revenue grew 10.0% YoY, reaching $1.68B last quarter. TTM EBITDA of $1.26B and TTM operating income of $1.16B show growth is flowing through to the bottom line. TTM net income of $936.87M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 20.7%
Op. Margin: 19.5%
Net Margin: 15.7%

Op. margin of 19.5% is up 5.5% YoY — cost efficiency is improving. Net margin at 15.7% Over the past year, operating margin is up 39% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 5.9x
P/S Ratio: 0.9x
P/B Ratio: 2.0x

At 5.9x P/E, the stock trades below typical market levels. P/S of 0.9x and P/B of 2.0x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 38% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $10.54B
Cash: $1.70B
Long-Term Debt: $943.75M
Book Value: $2.84B
D/E Ratio: 0.3
Debt/EBITDA: 2.7

With $10.54B in assets and $943.75M in long-term debt, D/E is 0.3and book value is $2.84B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 0% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $217.70M
TTM Free Cash Flow: $1.28B
FCF Margin: 20.2%
FCF / Net Income: 1.4

TTM FCF of $1.28B on $217.70M in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 57% — a weakening trend.