Mercury GeneralFRA:MCG +3.10%72 Pretax Margin % is 15.30% as of Mar. 2026, which is 147% above its 10-year median of 6.20. GuruFocus rates FRA:MCG with a GF Score™ of 72/100 and a GF Value™ of €82.65 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 506 Insurance companies, Mercury General ranks better than 66.6% on this metric.
The historical rank and industry rank for Mercury General's Pretax Margin % or its related term are showing as below:
FRA:MCG'
s Pretax Margin % Range Over the Past 10 Years
Min: -18.41 Med: 6.2 Max: 16.97
Current: 16.97
FRA:MCG's Pretax Margin % is ranked better than 66.6% of 506
companies
in the Insurance industry
Industry Median: 12.02
vs FRA:MCG: 16.97
Mercury General (FRA:MCG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Mercury General Pretax Margin % Related Terms
Mercury General Pretax Margin % Historical Data
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The historical data trend for Mercury General's Pretax Margin % 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.
FRA:MCG vs SIGI, RLI, WTM: Pretax Margin % Comparison
For the Insurance - Property & Casualty subindustry, Mercury General's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Mercury General's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Mercury General's Pretax Margin % falls into.
* 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 Pretax Margin % of 15.30% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Mercury General and its competitors. This is 147% above median its historical median of 6.20. According to the industry distribution chart, Mercury General ranks #169 out of 506 companies in the Insurance industry, placing it in the top 33.4%.
Is Mercury General's Pretax Margin % too high?
Mercury General's current Pretax Margin % of 15.30% is 147% above median its 10-year median of 6.20. The Insurance industry median Pretax Margin % is 12.02. Mercury General's value of 15.30% is 27.3% above this industry median. Based on the distribution chart, Mercury General ranks #169 out of 506 companies in the Insurance industry, which is above the industry midpoint. Overall, Mercury General has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercury General's Pretax Margin % compare to SIGI and RLI?
According to the Insurance industry distribution chart, Mercury General ranks #169 out of 506 companies for Pretax Margin %. This puts Mercury General in the upper half of its industry. The industry median Pretax Margin % is 12.02. Mercury General's value of 15.30% is 27.3% above this benchmark. While the company's 10-year median is 6.20 vs. the industry median of 12.02, 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.02, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercury General's current Pretax Margin % of 15.30% is 27.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Mercury General and its competitors. For the Insurance industry, the median Pretax Margin % is 12.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury General's current Pretax Margin % is 15.30%, which is 147% above median its own 10-year median of 6.20. 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 €82.65, compared to a current price of €93.05 — trading 12.6% above its estimated fair value. The current Pretax Margin % is 15.30%, which is 147% above median its 10-year median of 6.20 and 27.3% above the Insurance industry median of 12.02. Mercury General's overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Mercury General (FRA:MCG), the current Pretax Margin % is 15.30% 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 €93.05 is trading 12.6% above its estimated GF Value™ of €82.65.
GuruFocus considers Mercury General to be Modestly Overvalued.
Key valuation signals for FRA:MCG:
Pretax Margin %: 15.30% (147% above median its 10-year median of 6.20)
GF Value™: €82.65 vs. price of €93.05 (12.6% above fair value)
Industry Position: 27.3% above the Insurance median (#169 of 506)
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.
72GF Score
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