Mercury General Corporation (MCY) Fair Value & Analysis
Financial Services · US · Market cap $6.0B
Mercury General Corporation
MCY · US
Fair value as of: Jul 15, 2026
From 6 valuation models · updated 25 days ago
Share price −0.6% over the past month.
A solid business, screening 16% undervalued on our models.
What matters now
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
- Our model range runs from $95.25 (bear) to $158.75 (bull), base $127.00. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 65/100 (solid quality) with high evidence: the data supports the verdict.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.
How to read this chart
60‑month range $25.71 – $111.12 · fair‑value band $95.25 – $158.75 · the $109.50 price screens below the $127.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.
Analysis
Mercury General Corporation (MCY) currently trades at $109.50, while our model-based Fair Value estimate is $127.00, implying the stock looks roughly 16.0% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, Mercury General Corporation generated revenue of $6.1B at a net margin of 13.7%. Revenue grew 10.5% year over year. It earns a return on equity of 38.1%. The balance sheet holds a net cash position of $729M. Fundamentals as of Jul 15, 2026
Our scenario range runs from $95.25 (bear case) to $158.75 (bull case); at $109.50, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 78% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 8% fair-value upside, at 16%, MCY screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 6 models by family
Widest divergence: Economic Profit ($88.23) versus Dividend Discount ($18.21). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 65 · Market factors (momentum, volatility) 79
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Mercury General Corporation reported revenue of $6.0B in FY2025 versus $4.0B in FY2021, a compound +10.7%/yr. Reported net income was $541M in FY2025, compounding +21.5%/yr from FY2021.
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Zacks Investment Ideas feature highlights: Caterpillar, Mercury and Zebra
- 3 Stocks to Watch After Crushing Q2 Earnings Expectations: CAT, MCY & ZBRA
- Mercury Insurance Reveals the 10 Most Affordable New Electric and Hybrid Vehicles to Insure for 2026
- MCY Q2 Earnings Beat on Better Underwriting and Premium Growth
Peer Group
Insurance - Property & Casualty · 120 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Insurance - Property & Casualty median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Insurance - Property & Casualty stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The Progressive Corporation PGR | $234.48 | $252.50 | +8% |
| Chubb Limited CB | $337.44 | $345.56 | +2% |
| The Travelers Companies, Inc TRV | $368.98 | $384.42 | +4% |
| The Allstate Corporation ALL | $251.61 | $503.22 | +100% |
| The People's Insurance Company 601319 | ¥7.06 | ¥13.71 | +94% |
| Intact Financial Corporation IFC | C$294.02 | C$247.44 | -16% |
| Fairfax Financial Holdings FFH | C$2,327 | C$3,252 | +40% |
| QBE Insurance Group QBE | A$25.47 | A$19.42 | -24% |
| Samsung Fire & Marine Insurance Co 000810 | 648,000 KRW | 658,771 KRW | +2% |
| Powszechny Zaklad Ubezpieczen SA PZU | 69.80 PLN | 100.85 PLN | +44% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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