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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 : 7/10

vs
industry
vs
history
Cash to Debt 0.81
MCY's Cash to Debt is ranked higher than
65% of the 245 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 3.15 vs. MCY: 0.81 )
MCY' s 10-Year Cash to Debt Range
Min: 0.02   Max: 9999
Current: 0.81

0.02
9999
Equity to Asset 0.41
MCY's Equity to Asset is ranked higher than
89% of the 244 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.25 vs. MCY: 0.41 )
MCY' s 10-Year Equity to Asset Range
Min: 0.38   Max: 0.52
Current: 0.41

0.38
0.52
Interest Coverage 93.83
MCY's Interest Coverage is ranked higher than
77% of the 205 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 23.53 vs. MCY: 93.83 )
MCY' s 10-Year Interest Coverage Range
Min: 15.15   Max: 9999.99
Current: 93.83

15.15
9999.99
F-Score: 5
Z-Score: 1.98
WACC vs ROIC
2.90%
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 higher than
66% of the 245 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.45 vs. MCY: 5.85 )
MCY' s 10-Year Operating margin (%) Range
Min: -18.68   Max: 18.86
Current: 5.85

-18.68
18.86
Net-margin (%) 4.39
MCY's Net-margin (%) is ranked higher than
66% of the 245 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.80 vs. MCY: 4.39 )
MCY' s 10-Year Net-margin (%) Range
Min: -10.03   Max: 14.53
Current: 4.39

-10.03
14.53
ROE (%) 6.95
MCY's ROE (%) is ranked higher than
71% of the 244 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 11.59 vs. MCY: 6.95 )
MCY' s 10-Year ROE (%) Range
Min: -14.43   Max: 24.69
Current: 6.95

-14.43
24.69
ROA (%) 2.87
MCY's ROA (%) is ranked higher than
82% of the 245 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 3.05 vs. MCY: 2.87 )
MCY' s 10-Year ROA (%) Range
Min: -5.79   Max: 9.94
Current: 2.87

-5.79
9.94
ROC (Joel Greenblatt) (%) 110.99
MCY's ROC (Joel Greenblatt) (%) is ranked higher than
69% of the 200 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 276.99 vs. MCY: 110.99 )
MCY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -247.63   Max: 1343.28
Current: 110.99

-247.63
1343.28
Revenue Growth (3Y)(%) 2.60
MCY's Revenue Growth (3Y)(%) is ranked higher than
65% of the 221 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 7.20 vs. MCY: 2.60 )
MCY' s 10-Year Revenue Growth (3Y)(%) Range
Min: -7   Max: 20.7
Current: 2.6

-7
20.7
EBITDA Growth (3Y)(%) -1.70
MCY's EBITDA Growth (3Y)(%) is ranked higher than
64% of the 181 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 17.30 vs. MCY: -1.70 )
MCY' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 8.2
Current: -1.7

0
8.2
EPS Growth (3Y)(%) -2.50
MCY's EPS Growth (3Y)(%) is ranked higher than
59% of the 156 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 21.80 vs. MCY: -2.50 )
MCY' s 10-Year EPS Growth (3Y)(%) Range
Min: -33.7   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

Q1 2014

MCY Guru Trades in Q1 2014

Murray Stahl 17,915 sh (+57.63%)
PRIMECAP Management 281,600 sh (unchged)
Chuck Royce 189,200 sh (unchged)
Jeff Auxier 15,245 sh (unchged)
Jim Simons 34,399 sh (-54.35%)
» More
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

Paul Tudor Jones 8,900 sh (New)
Jim Simons 44,100 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
» 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 (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) 23.00
MCY's P/E(ttm) is ranked higher than
56% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 15.20 vs. MCY: 23.00 )
MCY' s 10-Year P/E(ttm) Range
Min: 5.12   Max: 35.04
Current: 23

5.12
35.04
Forward P/E 19.46
MCY's Forward P/E is ranked lower than
52% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 15.31 vs. MCY: 19.46 )
N/A
PE(NRI) 23.20
MCY's PE(NRI) is ranked higher than
67% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 14.80 vs. MCY: 23.20 )
MCY' s 10-Year PE(NRI) Range
Min: 5.12   Max: 35.11
Current: 23.2

5.12
35.11
P/B 1.60
MCY's P/B is ranked higher than
57% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.45 vs. MCY: 1.60 )
MCY' s 10-Year P/B Range
Min: 0.83   Max: 2.24
Current: 1.6

0.83
2.24
P/S 1.02
MCY's P/S is ranked higher than
69% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.31 vs. MCY: 1.02 )
MCY' s 10-Year P/S Range
Min: 0.51   Max: 1.26
Current: 1.02

0.51
1.26
PFCF 16.40
MCY's PFCF is ranked higher than
69% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 30.83 vs. MCY: 16.40 )
MCY' s 10-Year PFCF Range
Min: 6.63   Max: 152
Current: 16.4

6.63
152
POCF 14.63
MCY's POCF is ranked higher than
74% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.63 vs. MCY: 14.63 )
MCY' s 10-Year POCF Range
Min: 6.07   Max: 41.54
Current: 14.63

6.07
41.54
EV-to-EBIT 15.32
MCY's EV-to-EBIT is ranked higher than
72% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.85 vs. MCY: 15.32 )
MCY' s 10-Year EV-to-EBIT Range
Min: -26.9   Max: 30.1
Current: 15.32

-26.9
30.1
Shiller P/E 16.00
MCY's Shiller P/E is ranked higher than
81% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 23.78 vs. MCY: 16.00 )
MCY' s 10-Year Shiller P/E Range
Min: 7.11   Max: 21.7
Current: 16

7.11
21.7
Days Sales Outstanding 53.88
MCY's Days Sales Outstanding is ranked higher than
93% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 257.26 vs. MCY: 53.88 )
MCY' s 10-Year Days Sales Outstanding Range
Min: 37.15   Max: 63.8
Current: 53.88

37.15
63.8

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.46
MCY's Dividend Yield is ranked higher than
68% of the 212 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.73 vs. MCY: 4.46 )
MCY' s 10-Year Dividend Yield Range
Min: 2.47   Max: 9.86
Current: 4.46

2.47
9.86
Dividend Payout 1.03
MCY's Dividend Payout is ranked higher than
64% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.61 vs. MCY: 1.03 )
MCY' s 10-Year Dividend Payout Range
Min: 0.17   Max: 15
Current: 1.03

0.17
15
Dividend growth (3y) 0.70
MCY's Dividend growth (3y) is ranked higher than
66% of the 174 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.40 vs. MCY: 0.70 )
MCY' s 10-Year Dividend growth (3y) Range
Min: 0.7   Max: 20.5
Current: 0.7

0.7
20.5
Yield on cost (5-Year) 4.75
MCY's Yield on cost (5-Year) is ranked higher than
64% of the 214 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 3.49 vs. MCY: 4.75 )
MCY' s 10-Year Yield on cost (5-Year) Range
Min: 2.61   Max: 10.41
Current: 4.75

2.61
10.41
Share Buyback Rate -0.10
MCY's Share Buyback Rate is ranked higher than
77% of the 194 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: -0.20 vs. MCY: -0.10 )
MCY' s 10-Year Share Buyback Rate Range
Min: 0.8   Max: -0.2
Current: -0.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.70
MCY's Price/Tangible Book is ranked higher than
69% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.80 vs. MCY: 1.70 )
MCY' s 10-Year Price/Tangible Book Range
Min: 1.24   Max: 3.83
Current: 1.7

1.24
3.83
Price/DCF (Projected) 1.10
MCY's Price/DCF (Projected) is ranked higher than
74% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.30 vs. MCY: 1.10 )
MCY' s 10-Year Price/DCF (Projected) Range
Min: 0.37   Max: 1.07
Current: 1.1

0.37
1.07
Price/Median PS Value 1.10
MCY's Price/Median PS Value is ranked higher than
68% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.20 vs. MCY: 1.10 )
MCY' s 10-Year Price/Median PS Value Range
Min: 0.73   Max: 3.35
Current: 1.1

0.73
3.35
Price/Graham Number 1.30
MCY's Price/Graham Number is ranked higher than
69% of the 278 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.10 vs. MCY: 1.30 )
MCY' s 10-Year Price/Graham Number Range
Min: 0.55   Max: 1.89
Current: 1.3

0.55
1.89
Earnings Yield (Greenblatt) 6.50
MCY's Earnings Yield (Greenblatt) is ranked higher than
60% of the 245 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.30 vs. MCY: 6.50 )
MCY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.3   Max: 28.7
Current: 6.5

3.3
28.7
Forward Rate of Return (Yacktman) -1.32
MCY's Forward Rate of Return (Yacktman) is ranked higher than
62% of the 167 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 12.86 vs. MCY: -1.32 )
MCY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -12.7   Max: 44
Current: -1.32

-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

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