Mercury GeneralFRA:MCG -0.57%69 Return-on-Tangible-Equity is 31.23% as of Mar. 2026, which is 201% above its 10-year median of 10.39. GuruFocus rates FRA:MCG with a GF Score™ of 69/100 and a GF Value™ of €83.41 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 498 Insurance companies, Mercury General ranks better than 88.76% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mercury General's annualized net income for the quarter that ended in Mar. 2026 was €659 Mil. Mercury General's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,110 Mil. Therefore, Mercury General's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 31.23%.
The historical rank and industry rank for Mercury General's Return-on-Tangible-Equity or its related term are showing as below:
FRA:MCG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.82 Med: 10.39 Max: 38.95
Current: 38.95
During the past 13 years, Mercury General's highest Return-on-Tangible-Equity was 38.95%. The lowest was -28.82%. And the median was 10.39%.
FRA:MCG's Return-on-Tangible-Equity is ranked better than 88.76% of 498
companies
in the Insurance industry
Industry Median: 13.53
vs FRA:MCG: 38.95
Mercury General (FRA:MCG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mercury General Return-on-Tangible-Equity Related Terms
Mercury General Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mercury General's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Mercury General's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Mercury General's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mercury General's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.23% mean?
Mercury General (FRA:MCG) has a Return-on-Tangible-Equity of 31.23% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercury General and its competitors. This is 201% above median its historical median of 10.39. According to the industry distribution chart, Mercury General ranks #56 out of 498 companies in the Insurance industry, placing it in the top 11.2%.
Is Mercury General's Return-on-Tangible-Equity too high?
Mercury General's current Return-on-Tangible-Equity of 31.23% is 201% above median its 10-year median of 10.39. The Insurance industry median Return-on-Tangible-Equity is 13.53. Mercury General's value of 31.23% is 130.8% above this industry median. Based on the distribution chart, Mercury General ranks #56 out of 498 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to SIGI and RLI?
According to the Insurance industry distribution chart, Mercury General ranks #56 out of 498 companies for Return-on-Tangible-Equity. This places Mercury General in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.53. Mercury General's value of 31.23% is 130.8% above this benchmark. While the company's 10-year median is 10.39 vs. the industry median of 13.53, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.53, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercury General's current Return-on-Tangible-Equity of 31.23% is 130.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercury General and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury General's current Return-on-Tangible-Equity is 31.23%, which is 201% above median its own 10-year median of 10.39. 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 €83.41, compared to a current price of €95.30 — trading 14.3% above its estimated fair value. The current Return-on-Tangible-Equity is 31.23%, which is 201% above median its 10-year median of 10.39 and 130.8% above the Insurance industry median of 13.53. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mercury General (FRA:MCG), the current Return-on-Tangible-Equity is 31.23% 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 €95.30 is trading 14.3% above its estimated GF Value™ of €83.41.
GuruFocus considers Mercury General to be Modestly Overvalued.
Key valuation signals for FRA:MCG:
Return-on-Tangible-Equity: 31.23% (201% above median its 10-year median of 10.39)
GF Value™: €83.41 vs. price of €95.30 (14.3% above fair value)
Industry Position: 130.8% above the Insurance median (#56 of 498)
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
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