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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.81
MCY's Cash to Debt is ranked lower than
68% of the 128 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 3.15 vs. MCY: 0.81 )
Ranked among companies with meaningful Cash to Debt only.
MCY' s 10-Year Cash to Debt Range
Min: 0.02  Med: 0.34 Max: N/A
Current: 0.81
Equity to Asset 0.41
MCY's Equity to Asset is ranked higher than
81% of the 126 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.27 vs. MCY: 0.41 )
Ranked among companies with meaningful Equity to Asset only.
MCY' s 10-Year Equity to Asset Range
Min: 0.38  Med: 0.43 Max: 0.52
Current: 0.41
0.38
0.52
Interest Coverage 93.83
MCY's Interest Coverage is ranked higher than
55% of the 112 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 36.81 vs. MCY: 93.83 )
Ranked among companies with meaningful Interest Coverage only.
MCY' s 10-Year Interest Coverage Range
Min: 15.15  Med: 58.18 Max: 9999.99
Current: 93.83
15.15
9999.99
F-Score: 5
WACC vs ROIC
2.94%
8.02%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 5.85
MCY's Operating margin (%) is ranked lower than
73% of the 128 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.19 vs. MCY: 5.85 )
Ranked among companies with meaningful Operating margin (%) only.
MCY' s 10-Year Operating margin (%) Range
Min: -18.68  Med: 9.91 Max: 18.86
Current: 5.85
-18.68
18.86
Net-margin (%) 4.39
MCY's Net-margin (%) is ranked lower than
74% of the 128 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.51 vs. MCY: 4.39 )
Ranked among companies with meaningful Net-margin (%) only.
MCY' s 10-Year Net-margin (%) Range
Min: -10.03  Med: 7.75 Max: 14.53
Current: 4.39
-10.03
14.53
ROE (%) 6.95
MCY's ROE (%) is ranked lower than
74% of the 127 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.46 vs. MCY: 6.95 )
Ranked among companies with meaningful ROE (%) only.
MCY' s 10-Year ROE (%) Range
Min: -14.43  Med: 12.89 Max: 24.69
Current: 6.95
-14.43
24.69
ROA (%) 2.87
MCY's ROA (%) is ranked higher than
50% of the 128 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.87 vs. MCY: 2.87 )
Ranked among companies with meaningful ROA (%) only.
MCY' s 10-Year ROA (%) Range
Min: -5.79  Med: 5.40 Max: 9.94
Current: 2.87
-5.79
9.94
ROC (Joel Greenblatt) (%) 112.82
MCY's ROC (Joel Greenblatt) (%) is ranked lower than
69% of the 103 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 252.27 vs. MCY: 112.82 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
MCY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -244.91  Med: 291.43 Max: 922.09
Current: 112.82
-244.91
922.09
Revenue Growth (3Y)(%) 2.60
MCY's Revenue Growth (3Y)(%) is ranked lower than
69% of the 112 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 7.20 vs. MCY: 2.60 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
MCY' s 10-Year Revenue Growth (3Y)(%) Range
Min: -7  Med: 7.40 Max: 20.8
Current: 2.6
-7
20.8
EBITDA Growth (3Y)(%) -1.70
MCY's EBITDA Growth (3Y)(%) is ranked lower than
77% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 19.30 vs. MCY: -1.70 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
MCY' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: -31.55 Max: 26.4
Current: -1.7
0
26.4
EPS Growth (3Y)(%) -2.50
MCY's EPS Growth (3Y)(%) is ranked lower than
86% of the 76 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 16.60 vs. MCY: -2.50 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
MCY' s 10-Year EPS Growth (3Y)(%) Range
Min: -33.7  Med: -2.50 Max: 56.4
Current: -2.5
-33.7
56.4
» MCY's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

MCY Guru Trades in Q2 2014

Bruce Berkowitz 53,600 sh (New)
PRIMECAP Management 281,600 sh (unchged)
Jim Simons Sold Out
Chuck Royce 185,100 sh (-2.17%)
Jeff Auxier 14,795 sh (-2.95%)
Murray Stahl 17,254 sh (-3.69%)
» More
Q3 2014

MCY Guru Trades in Q3 2014

Jim Simons 44,100 sh (New)
Paul Tudor Jones 8,900 sh (New)
PRIMECAP Management 281,600 sh (unchged)
Bruce Berkowitz Sold Out
Jeff Auxier Sold Out
Murray Stahl 17,128 sh (-0.73%)
Chuck Royce 179,100 sh (-3.24%)
» More
Q4 2014

MCY Guru Trades in Q4 2014

Jim Simons 52,500 sh (+19.05%)
PRIMECAP Management 281,600 sh (unchged)
Paul Tudor Jones Sold Out
Chuck Royce 177,300 sh (-1.01%)
Murray Stahl 15,599 sh (-8.93%)
» More
Q1 2015

MCY Guru Trades in Q1 2015

Paul Tudor Jones 6,900 sh (New)
PRIMECAP Management 281,600 sh (unchged)
Jim Simons Sold Out
Chuck Royce 175,500 sh (-1.02%)
Murray Stahl 14,954 sh (-4.13%)
» More
» Details

Insider Trades

Latest Guru Trades with MCY

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Mercury General Corp

Lountzis Asset Management Comments on Mercury General - Mar 21, 2014

MERCURY GENERAL (NYSE:MCY) is the largest auto insurer distributing policies through independent agents in California. They had a challenging but improved 2013.



Net written premiums in 2013 were $2.7 billion, up from $2.6 billion in 2012. While 2013 was an improvement over 2012 for the company, we still believe the company’s outstanding California franchise makes it an excellent acquisition candidate for several firms seeking to growth their California operations. Furthermore, the company’s excellent claims capability and solid distribution throughout California should enable the company to return to its historical excellent underwriting results going forward.



We have enormous respect for George Joseph, an industry legend, who is now in his early 90’s, and he, along with his ex-wife, control more than half of the 54.1 million shares outstanding.



From Lountzis Asset Management 2013 Annual Letter



Check out latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 23.51
MCY's P/E(ttm) is ranked lower than
91% of the 111 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.70 vs. MCY: 23.51 )
Ranked among companies with meaningful P/E(ttm) only.
MCY' s 10-Year P/E(ttm) Range
Min: 5.12  Med: 12.72 Max: 35.04
Current: 23.51
5.12
35.04
Forward P/E 20.20
MCY's Forward P/E is ranked lower than
89% of the 76 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 13.51 vs. MCY: 20.20 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 23.60
MCY's PE(NRI) is ranked lower than
92% of the 110 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.70 vs. MCY: 23.60 )
Ranked among companies with meaningful PE(NRI) only.
MCY' s 10-Year PE(NRI) Range
Min: 5.12  Med: 12.72 Max: 35.11
Current: 23.6
5.12
35.11
P/B 1.65
MCY's P/B is ranked lower than
73% of the 124 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.26 vs. MCY: 1.65 )
Ranked among companies with meaningful P/B only.
MCY' s 10-Year P/B Range
Min: 0.83  Med: 1.41 Max: 2.24
Current: 1.65
0.83
2.24
P/S 1.04
MCY's P/S is ranked higher than
61% of the 129 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.18 vs. MCY: 1.04 )
Ranked among companies with meaningful P/S only.
MCY' s 10-Year P/S Range
Min: 0.51  Med: 0.89 Max: 1.26
Current: 1.04
0.51
1.26
PFCF 16.90
MCY's PFCF is ranked lower than
66% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.65 vs. MCY: 16.90 )
Ranked among companies with meaningful PFCF only.
MCY' s 10-Year PFCF Range
Min: 6.63  Med: 14.66 Max: 152
Current: 16.9
6.63
152
POCF 14.81
MCY's POCF is ranked lower than
78% of the 104 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.41 vs. MCY: 14.81 )
Ranked among companies with meaningful POCF only.
MCY' s 10-Year POCF Range
Min: 6.07  Med: 12.81 Max: 41.54
Current: 14.81
6.07
41.54
EV-to-EBIT 16.71
MCY's EV-to-EBIT is ranked lower than
88% of the 112 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.78 vs. MCY: 16.71 )
Ranked among companies with meaningful EV-to-EBIT only.
MCY' s 10-Year EV-to-EBIT Range
Min: -26.9  Med: 10.80 Max: 30.1
Current: 16.71
-26.9
30.1
Shiller P/E 16.10
MCY's Shiller P/E is ranked higher than
61% of the 95 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 17.44 vs. MCY: 16.10 )
Ranked among companies with meaningful Shiller P/E only.
MCY' s 10-Year Shiller P/E Range
Min: 7.13  Med: 14.29 Max: 21.42
Current: 16.1
7.13
21.42
Days Sales Outstanding 53.88
MCY's Days Sales Outstanding is ranked higher than
71% of the 78 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 83.83 vs. MCY: 53.88 )
Ranked among companies with meaningful Days Sales Outstanding only.
MCY' s 10-Year Days Sales Outstanding Range
Min: 37.15  Med: 49.67 Max: 63.8
Current: 53.88
37.15
63.8

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.39
MCY's Dividend Yield is ranked higher than
60% of the 172 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 4.00 vs. MCY: 4.39 )
Ranked among companies with meaningful Dividend Yield only.
MCY' s 10-Year Dividend Yield Range
Min: 2.47  Med: 5.10 Max: 9.86
Current: 4.39
2.47
9.86
Dividend Payout 1.03
MCY's Dividend Payout is ranked lower than
89% of the 124 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.33 vs. MCY: 1.03 )
Ranked among companies with meaningful Dividend Payout only.
MCY' s 10-Year Dividend Payout Range
Min: 0.17  Med: 0.42 Max: 15
Current: 1.03
0.17
15
Dividend growth (3y) 0.70
MCY's Dividend growth (3y) is ranked lower than
75% of the 77 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.10 vs. MCY: 0.70 )
Ranked among companies with meaningful Dividend growth (3y) only.
MCY' s 10-Year Dividend growth (3y) Range
Min: 0.7  Med: 11.80 Max: 20.5
Current: 0.7
0.7
20.5
Yield on cost (5-Year) 4.64
MCY's Yield on cost (5-Year) is ranked higher than
51% of the 174 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 4.58 vs. MCY: 4.64 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
MCY' s 10-Year Yield on cost (5-Year) Range
Min: 2.61  Med: 5.39 Max: 10.41
Current: 4.64
2.61
10.41
Share Buyback Rate -0.10
MCY's Share Buyback Rate is ranked higher than
62% of the 89 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: -0.50 vs. MCY: -0.10 )
Ranked among companies with meaningful Share Buyback Rate only.
MCY' s 10-Year Share Buyback Rate Range
Min: 0.8  Med: -0.10 Max: -0.5
Current: -0.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.73
MCY's Price/Tangible Book is ranked lower than
65% of the 122 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.41 vs. MCY: 1.73 )
Ranked among companies with meaningful Price/Tangible Book only.
MCY' s 10-Year Price/Tangible Book Range
Min: 1.13  Med: 1.77 Max: 4.11
Current: 1.73
1.13
4.11
Price/Projected FCF 1.08
MCY's Price/Projected FCF is ranked lower than
67% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.78 vs. MCY: 1.08 )
Ranked among companies with meaningful Price/Projected FCF only.
MCY' s 10-Year Price/Projected FCF Range
Min: 0.37  Med: 0.66 Max: 1.11
Current: 1.08
0.37
1.11
Price/Median PS Value 1.16
MCY's Price/Median PS Value is ranked lower than
57% of the 126 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.10 vs. MCY: 1.16 )
Ranked among companies with meaningful Price/Median PS Value only.
MCY' s 10-Year Price/Median PS Value Range
Min: 0.73  Med: 1.20 Max: 3.35
Current: 1.16
0.73
3.35
Price/Graham Number 1.34
MCY's Price/Graham Number is ranked lower than
79% of the 109 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.89 vs. MCY: 1.34 )
Ranked among companies with meaningful Price/Graham Number only.
MCY' s 10-Year Price/Graham Number Range
Min: 0.55  Med: 1.03 Max: 1.89
Current: 1.34
0.55
1.89
Earnings Yield (Greenblatt) (%) 6.03
MCY's Earnings Yield (Greenblatt) (%) is ranked lower than
76% of the 127 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.80 vs. MCY: 6.03 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
MCY' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 3.3  Med: 9.10 Max: 28.7
Current: 6.03
3.3
28.7
Forward Rate of Return (Yacktman) (%) -1.39
MCY's Forward Rate of Return (Yacktman) (%) is ranked lower than
78% of the 82 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 14.68 vs. MCY: -1.39 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
MCY' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -12.7  Med: 10.00 Max: 44
Current: -1.39
-12.7
44

Business Description

Industry: Insurance - Property & Casualty » Insurance - Property & Casualty
Compare:RLI, TRV, MBI, QBIEY, TKOMY » details
Mercury General Corp is a California Corporation founded in 1961. It operates as an insurance holding company. The Company and its subsidiaries are engaged mainly in writing automobile insurance in a number of states, mainly California. The Company also writes homeowners, mechanical breakdown, fire, umbrella, and commercial automobile and property insurance. The Company offers automobile policyholders the following types of coverage: bodily injury liability, underinsured and uninsured motorist, personal injury protection, property damage liability, comprehensive, collision and other hazards. The Company sets its own automobile insurance premium rates, subject to rating regulations issued by the Departments of Insurance or similar governmental agencies of the applicable states. In addition, the Company offers mechanical breakdown insurance in many states and homeowners insurance in Florida, Illinois, Oklahoma, New York, Georgia, Texas, and Arizona. The Company offers standard, non-standard, and preferred private passenger automobile insurance. The Company conducts the majority of claims processing without the assistance of outside adjusters. The claims staff administers all claims and direct all legal and adjustment aspects of claims processing. The Company sells its policies through approximately 6700 independent agents and brokers, of which over 1,200 are located in each of California and Florida. The remaining agents are located in Georgia, Illinois, Texas, Oklahoma, New York, New Jersey, Virginia, Pennsylvania, Arizona, Nevada, and Michigan. The Company operates in the highly competitive property-casualty industry subject to competition on pricing, claims, consumer recognition, coverage offered and other product features, customer service, and geographic coverage. The Company is subject to significant regulation and supervision by the Departments of Insurance of each state in which the Company operates.
» More Articles for MCY

Headlines

Articles On GuruFocus.com
Bruce Berkowitz’s Fairholme Buys 7 New Stocks Sep 08 2014 
Four Businesses with Over 5% Dividend Yields & Over 25 Years of Dividend Increases Jul 19 2014 
Lountzis Asset Management Comments on Mercury General Mar 21 2014 
6 High-Yield Dividend Achievers with 25 Years of Increases Dec 11 2013 
9 Dividend Stock Delivering Good News with Higher Dividends Nov 04 2013 
Bruce Berkowitz Biggest Dividend Stock Buys Jun 13 2013 
13 Dividend Champions with Very Low Debt to Equity Ratios Apr 05 2013 
13 High-Quality Dividend Income Stocks to Consider Mar 05 2013 
The Best Dividend Paying Stock Portfolio Brings You 8.71% Yearly Return Nov 08 2012 
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