Mercury GeneralFRA:MCG -2.96%69 Interest Coverage is 35.57 as of Mar. 2026, which is 85% above its 10-year median of 19.25. GuruFocus rates FRA:MCG with a GF Score™ of 69/100 and a GF Value™ of €79.96 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 353 Insurance companies, Mercury General ranks better than 66.29% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Mercury General's
EBIT
for the
three
months ended in Mar. 2026 was €210 Mil. Mercury General's Interest Expense for the
three
months ended in Mar. 2026 was €-6 Mil.
Mercury General's interest coverage for the quarter that ended in Mar. 2026 was 35.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Mercury General's Interest Coverage or its related term are showing as below:
FRA:MCG'
s Interest Coverage Range Over the Past 10 Years
Min: 5.11 Med: 19.25 Max: 37.87
Current: 37.87
FRA:MCG's Interest Coverage is ranked better than 66.29% of 353
companies
in the Insurance industry
Industry Median: 16.26
vs FRA:MCG: 37.87
Mercury General (FRA:MCG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Mercury General Interest Coverage Related Terms
Mercury General Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mercury General's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:MCG vs SIGI, RLI, WTM: Interest Coverage Comparison
For the Insurance - Property & Casualty subindustry, Mercury General's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mercury General Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Mercury General's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mercury General's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mercury General (FRA:MCG) has a Interest Coverage of 35.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mercury General and its competitors. This is 85% above median its historical median of 19.25. Over the past decade, Mercury General's Interest Coverage has ranged from 5.11 to 37.87. According to the industry distribution chart, Mercury General ranks #119 out of 353 companies in the Insurance industry, placing it in the top 33.7%.
Is Mercury General's Interest Coverage too high?
Mercury General's current Interest Coverage of 35.57 is 85% above median its 10-year median of 19.25. Over the past 10 years, this metric has ranged from a low of 5.11 to a high of 37.87. The Insurance industry median Interest Coverage is 16.26. Mercury General's value of 35.57 is 118.8% above this industry median. Based on the distribution chart, Mercury General ranks #119 out of 353 companies in the Insurance industry, which is above the industry midpoint. Overall, Mercury General has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercury General's Interest Coverage compare to SIGI and RLI?
According to the Insurance industry distribution chart, Mercury General ranks #119 out of 353 companies for Interest Coverage. This puts Mercury General in the upper half of its industry. The industry median Interest Coverage is 16.26. Mercury General's value of 35.57 is 118.8% above this benchmark. Historically, Mercury General's own Interest Coverage has ranged from 5.11 to 37.87 over the past decade. While the company's 10-year median is 19.25 vs. the industry median of 16.26, Mercury General has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.26, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercury General's current Interest Coverage of 35.57 is 118.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mercury General and its competitors. For the Insurance industry, the median Interest Coverage is 16.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury General's current Interest Coverage is 35.57, which is 85% above median its own 10-year median of 19.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury General stock overvalued right now?
Based on GuruFocus' analysis, Mercury General (FRA:MCG) is currently considered Modestly Overvalued. The stock's GF Value™ is €79.96, compared to a current price of €90.25 — trading 12.9% above its estimated fair value. The current Interest Coverage is 35.57, which is 85% above median its 10-year median of 19.25 and 118.8% above the Insurance industry median of 16.26. Mercury General's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Mercury General (FRA:MCG), the current Interest Coverage is 35.57 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mercury General (FRA:MCG) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury General stock appears to be overvalued.
The current stock price of €90.25 is trading 12.9% above its estimated GF Value™ of €79.96.
GuruFocus considers Mercury General to be Modestly Overvalued.
Key valuation signals for FRA:MCG:
Interest Coverage: 35.57 (85% above median its 10-year median of 19.25)
GF Value™: €79.96 vs. price of €90.25 (12.9% above fair value)
Industry Position: 118.8% above the Insurance median (#119 of 353)
No single metric tells the full story. See the FRA:MCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury General Corp is an insurance holding company. It is engaged in writing personal automobile insurance and provides related property and casualty insurance products. The company offers the following types of automobile coverage: collision, property damage, bodily injury (BI), comprehensive, personal injury protection (PIP), underinsured and uninsured motorist, and other hazards. Additionally, it offers the following types of homeowners coverage: dwelling, liability, personal property, and other coverages. The company has one reportable business segment, the Property and Casualty business segment.
69GF Score
Get the complete analysis for FRA:MCG
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