Mercury GeneralFRA:MCG +0.54%73 ROE % is 30.61% as of Mar. 2026, which is 204% above its 10-year median of 10.07. GuruFocus rates FRA:MCG with a GF Score™ of 73/100 and a GF Value™ of €85.05 (Fairly Valued). The stock has 5 warning signs investors should review. Among 502 Insurance companies, Mercury General ranks better than 94.42% on this metric.
The historical rank and industry rank for Mercury General's ROE % or its related term are showing as below:
FRA:MCG'
s ROE % Range Over the Past 10 Years
Min: -28 Med: 10.07 Max: 38.07
Current: 38.07
During the past 13 years, Mercury General's highest ROE % was 38.07%. The lowest was -28.00%. And the median was 10.07%.
FRA:MCG's ROE % is ranked better than 94.42% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs FRA:MCG: 38.07
Mercury General (FRA:MCG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Mercury General ROE % Related Terms
Mercury General ROE % Historical Data
* Premium members only.
The historical data trend for Mercury General's ROE % 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.
For the Insurance - Property & Casualty subindustry, Mercury General's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Mercury General's ROE % distribution charts can be found below:
* The bar in red indicates where Mercury General's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Mercury General (FRA:MCG) has a ROE % of 30.61% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mercury General and its competitors. This is 204% above median its historical median of 10.07. According to the industry distribution chart, Mercury General ranks #28 out of 502 companies in the Insurance industry, placing it in the top 5.6%.
Is Mercury General's ROE % too high?
Mercury General's current ROE % of 30.61% is 204% above median its 10-year median of 10.07. The Insurance industry median ROE % is 11.73. Mercury General's value of 30.61% is 161% above this industry median. Based on the distribution chart, Mercury General ranks #28 out of 502 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 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mercury General's ROE % compare to SIGI and WTM?
According to the Insurance industry distribution chart, Mercury General ranks #28 out of 502 companies for ROE %. This places Mercury General in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 11.73. Mercury General's value of 30.61% is 161% above this benchmark. While the company's 10-year median is 10.07 vs. the industry median of 11.73, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercury General's current ROE % of 30.61% is 161% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mercury General and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury General's current ROE % is 30.61%, which is 204% above median its own 10-year median of 10.07. 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 Fairly Valued. The stock's GF Value™ is €85.05, compared to a current price of €93.00 — trading 9.3% above its estimated fair value. The current ROE % is 30.61%, which is 204% above median its 10-year median of 10.07 and 161% above the Insurance industry median of 11.73. Mercury General's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Mercury General (FRA:MCG), the current ROE % is 30.61% 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 €93.00 is trading 9.3% above its estimated GF Value™ of €85.05.
GuruFocus considers Mercury General to be Fairly Valued.
Key valuation signals for FRA:MCG:
ROE %: 30.61% (204% above median its 10-year median of 10.07)
GF Value™: €85.05 vs. price of €93.00 (9.3% above fair value)
Industry Position: 161% above the Insurance median (#28 of 502)
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.
73GF Score
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