Mercury General Corporation (MCY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-11.9%

$91.70

vs $104.03 price

Levered DCF

$338.18

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.07

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.63×	7.87×	21.44×	-3.69×	11.84×	7.71×	8.43×	-517.1×
P/B	2.16×	1.89×	1.33×	1.24×	1.37×	1.42×	1.5×	1.77×
P/S	0.87×	0.67×	0.45×	0.52×	0.74×	0.76×	0.68×	0.85×
EV / EBITDA	5.84×	5.23×	10.74×	-3.54×	7.61×	5.44×	6.14×	64.56×
Gross margin	33.9%	17.0%	8.7%	-10.3%	15.0%	20.1%	16.7%	6.8%
Operating margin	11.1%	10.5%	2.1%	-18.4%	7.5%	12.1%	9.5%	-0.9%
Net margin	9.0%	8.5%	2.1%	-14.1%	6.2%	9.9%	8.1%	-0.2%
Current ratio	0.42×	68×	0×	0×	0.3×	0×	10.37×	12.07×
Debt / equity	0.24×	0.3×	0.38×	0.28×	0.19×	0.2×	0.23×	0.23×
Interest coverage	23.19×	18.65×	4.11×	-38.92×	17.49×	26.89×	22.19×	-1.8×
Dividend yield	1.4%	1.9%	3.4%	5.6%	4.8%	4.8%	5.2%	4.8%
Payout ratio	13.0%	15.0%	73.0%	-20.6%	56.6%	37.3%	43.4%	-2417.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	22.4%	24.0%	6.2%	-33.7%	11.6%	18.4%	17.8%	-0.4%
Return on invested capital	17.0%	29.1%	0.0%	-40.5%	8.8%	0.0%	5.4%	-0.1%
Return on assets	5.7%	5.6%	1.4%	-7.9%	3.7%	5.9%	5.4%	-0.1%
Free cash flow yield	19.7%	26.9%	20.1%	16.7%	15.7%	19.6%	17.8%	12.4%
Earnings yield	10.4%	12.7%	4.7%	-27.1%	8.4%	13.0%	11.9%	-0.2%
Enterprise value	$4.5B	$3.5B	$2.1B	$2B	$3B	$3B	$2.8B	$2.9B
Net debt / EBITDA	-0.95×	-0.2×	0.19×	-0.23×	0.18×	0.12×	0.27×	1.27×
Cash conversion cycle (days)	20	33	37	-70	45	39	-124	-173