📊 MCY Key Takeaways
Is Mercury General Corp. (MCY) a Good Investment?
Mercury General demonstrates solid financial health with conservative leverage (0.22x debt/equity), strong free cash flow generation ($308.8M, 20.1% margin), and excellent interest coverage (30.3x). However, the anomalous 20144.8% revenue growth combined with flat net income YoY raises quality-of-earnings concerns and obscures underlying business performance. Modest ROE of 7.4% and unclear growth drivers warrant a cautious stance until earnings clarity improves.
Why Buy Mercury General Corp. Stock? MCY Key Strengths
- Fortress balance sheet with 0.22x debt/equity and $1.4B cash position
- Exceptional free cash flow generation of $308.8M with 20.1% FCF margin
- Strong interest coverage ratio of 30.3x indicates minimal financial stress
- Solid operating margins of 15.3% and net margins of 12.4% for insurance sector
- 15.6% EPS growth demonstrates shareholder value creation through buybacks
MCY Stock Risks: Mercury General Corp. Investment Risks
- Highly suspicious 20144.8% revenue growth contradicted by flat net income suggests data anomaly or major accounting event requiring clarification
- Low ROE of 7.4% indicates modest returns on shareholder capital relative to quality insurers
- Earnings growth disconnect from revenue explosion raises material concerns about earnings quality and sustainability
- Absence of earnings growth alongside revenue surge suggests pricing/mix pressures or one-time items may be masking operational trends
Key Metrics to Watch
- Reconciliation of revenue growth driver versus flat net income trend
- Return on equity trajectory and sustainability above 7% threshold
- Operating cash flow consistency and free cash flow conversion quality
Mercury General Corp. (MCY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MCY Profit Margin, ROE & Profitability Analysis
MCY vs Finance Sector: How Mercury General Corp. Compares
How Mercury General Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mercury General Corp. Stock Overvalued? MCY Valuation Analysis 2026
Based on fundamental analysis, Mercury General Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mercury General Corp. Balance Sheet: MCY Debt, Cash & Liquidity
MCY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mercury General Corp.'s revenue has grown significantly by 47% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.74 reflects profitable operations.
MCY Revenue Growth, EPS Growth & YoY Performance
MCY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.0M | -$108.3M | $-1.96 |
| Q3 2025 | $6.4M | $230.9M | $4.17 |
| Q2 2025 | $6.0M | $58.1M | $1.05 |
| Q1 2025 | $5.7M | $73.5M | $1.33 |
| Q3 2024 | $5.2M | -$8.2M | $-0.15 |
| Q2 2024 | $5.0M | -$41.5M | $-0.75 |
| Q1 2024 | $4.8M | -$45.3M | $-0.82 |
| Q3 2023 | $4.5M | -$8.2M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mercury General Corp. Dividends, Buybacks & Capital Allocation
MCY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mercury General Corp. (CIK: 0000064996)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MCY
What is the AI rating for MCY?
Mercury General Corp. (MCY) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MCY's key strengths?
Claude: Fortress balance sheet with 0.22x debt/equity and $1.4B cash position. Exceptional free cash flow generation of $308.8M with 20.1% FCF margin.
What are the risks of investing in MCY?
Claude: Highly suspicious 20144.8% revenue growth contradicted by flat net income suggests data anomaly or major accounting event requiring clarification. Low ROE of 7.4% indicates modest returns on shareholder capital relative to quality insurers.
What is MCY's revenue and growth?
Mercury General Corp. reported revenue of $1.5B.
Does MCY pay dividends?
Mercury General Corp. pays dividends, with $70.3M distributed to shareholders in the trailing twelve months.
Where can I find MCY SEC filings?
Official SEC filings for Mercury General Corp. (CIK: 0000064996) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MCY's EPS?
Mercury General Corp. has a diluted EPS of $3.44.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MCY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Mercury General Corp. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MCY stock overvalued or undervalued?
Valuation metrics for MCY: ROE of 7.4% (sector avg: 12%), net margin of 12.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy MCY stock in 2026?
Our dual AI analysis gives Mercury General Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MCY's free cash flow?
Mercury General Corp.'s operating cash flow is $325.6M, with capital expenditures of $16.8M. FCF margin is 20.1%.
How does MCY compare to other Finance stocks?
Vs Finance sector averages: Net margin 12.4% (avg: 25%), ROE 7.4% (avg: 12%), current ratio N/A (avg: 1.2).