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Mercury General Corporation ("Mercury General") and its subsidiaries (referred to herein collectively as the "Company") are primarily engaged in writing personal automobile insurance through 12 insurance subsidiaries (referred to herein collectively as the "Insurance Companies") in 11 states, principally California. The Company also writes homeowners, commercial automobile, commercial property,…
$106.25
$1.24 (-1.15%)
EOD Jul 17, 2026
Net margin is thin at 9.03%. This may reflect rising credit costs, rate compression, or operational inefficiency.
Revenue grew 9.4% YoY.
Financial stocks carry unique risks (credit cycles, regulatory changes, interest rate sensitivity) that aren't captured by standard quality metrics.
7.0x earnings. Below the sector average, the market may be pricing in credit losses or regulatory headwinds, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$6.14B
▲ +9.4% YoY
Net Income (TTM)
$840M
▲ +15.6% YoY
Net Margin
13.68%
P/E
7.0x
Balance Sheet
Total Assets
$9.87B
Equity
$2.59B
Total Debt
$587M
Cash & Equiv.
$1.79B
5Y CAGR: +9.6%
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At a P/E of 7.0 and a price-to-free-cash-flow of 4.1, Mercury General (MCY) trades below a two-stage DCF intrinsic value of about $1,315.35 per share, so at $106.25 the stock looks undervalued (1,138.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Mercury General scores 93/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $1,315.35 per share for MCY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $986.51. At today's $106.25, that puts the stock about 1,138.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Mercury General scores 93 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Mercury General pays a regular dividend of about $1.27 per share per year (typically in quarterly installments), a yield of roughly 1.2% at the current price. That is a payout ratio of about 8.4% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For MCY's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. MCY currently trades below its estimated intrinsic value and scores 93/100 on quality (high-quality). It also yields about 1.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.