Zacks Investment Research·4 days ago
Mercury General (MCY) is a Great Momentum Stock: Should You Buy?Does Mercury General (MCY) have what it takes to be a top stock pick for momentum investors? Let's find out.
Mercury General Corporation(MCY)Earnings, Financials & Key Ratios
MCY•NYSE•Insurance & Managed Care
$111.12
11.4× P/E·Price updated Jul 6, 2026
SectorFinancial ServicesIndustryProperty & Casualty InsuranceSub-IndustryPersonal auto and homeowners insurers
AboutMercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.Show more
- Revenue$5.99B+9.4%
- Combined Ratio88.93%-0.6%
- Net Income$541M+15.6%
- Return on Equity24.8%-7.4%
- Medical Cost Ratio66.13%-20.3%
- Operating Margin11.07%+5.5%
- Net Margin9.03%+5.7%
- ROA6.06%-0.3%
- Equity / Assets25.28%+7.9%
MCY Price & Volume
Mercury General Corporation (MCY) stock price & volume — 10-year historical chart
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Underwriting Recovery Offsets California Regulatory Concentration Risks
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Stable
Profitability:Moderate
Financial:Healthy
Cash Flow:Robust
Primary Risk:California Regulatory Rate Lag
Key Thesis Takeaways
- Mercury General has demonstrated a successful pivot toward underwriting profitability, evidenced by a combined ratio improvement to 84.7% in 2026Q1 from the 110.2% peak in 2025Q1.
- While top-line growth of 10.5% reflects necessary rate adjustments to combat inflationary pressures, the company's heavy geographic concentration in California remains a primary risk factor for institutional investors.
- Future performance will likely depend on the company's ability to maintain this margin expansion while navigating the volatile regulatory environment that previously pressured its capital base.
Verdict Logic
while the company has successfully returned to underwriting profitability with a 15.3% underwriting margin in 2026Q1, the persistent geographic concentration risk in California warrants a cautious approach until long-term rate adequacy is further proven.
MCY Growth Metrics
Mercury General Corporation (MCY) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years7.13%
5 Years9.63%
3 Years18.04%
TTM9.7%
Profit CAGR
10 Years21.93%
5 Years7.63%
3 Years-
TTM193.48%
EPS CAGR
10 Years21.89%
5 Years7.61%
3 Years-
TTM193.99%
Return on Capital
10 Years3.65%
5 Years3.58%
3 Years5.46%
Last Year7.45%
MCY Recent Earnings
Mercury General Corporation (MCY) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
May 5, 2026Metric
Actual
Est
EPS
$3.50+62.8%
$2.15
Rev
$1.6B+6.1%
$1.5B
Q1 2026
Feb 17, 2026Metric
Actual
Est
EPS
$3.66+43.0%
$2.56
Rev
$1.4B+3.9%
$1.4B
Q4 2025
Nov 4, 2025Metric
Actual
Est
EPS
$3.86+79.5%
$2.15
Rev
$1.6B+15.3%
$1.4B
Q3 2025
Jul 29, 2025Metric
Actual
Est
EPS
$2.67+33.5%
$2.00
Rev
$1.5B-3.4%
$1.5B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 5, 2026 | $3.50vs $2.15+62.8% | $1.6Bvs $1.5B+6.1% |
| Q1 2026 | Feb 17, 2026 | $3.66vs $2.56+43.0% | $1.4Bvs $1.4B+3.9% |
| Q4 2025 | Nov 4, 2025 | $3.86vs $2.15+79.5% | $1.6Bvs $1.4B+15.3% |
| Q3 2025 | Jul 29, 2025 | $2.67vs $2.00+33.5% | $1.5Bvs $1.5B-3.4% |
Based on last 12 quarters of dataView full earnings history →
Latest MCY News
Recent stock market news and headlines for Mercury General Corporation (MCY)
Zacks Investment Research·4 days ago
Why Mercury General (MCY) is a Top Momentum Stock for the Long-TermThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Zacks Investment Research·5 days ago
5 P&C Insurers to Buy as Industry Sees Digitalization, Exposure GrowthZacks Property and Casualty Insurance players like THG, ESNT, MCY, SIGI and SKWD are likely to benefit from digitalization and catastrophes that drive policy renewal rate and pricing.
PRNewsWire·5 days ago
Americans May Be Preparing for the Wrong July 4 Risks, New Analysis FindsMercury Insurance analysis of five years of homeowner claims finds water damage, weather-related losses and theft generate far more July 4 claims than fireworks LOS ANGELES, July 1, 2026 /PRNewswire/ -- As Americans prepare for Independence Day celebrations, a new Mercury Insurance (NYSE/NYSE TX: MCY) analysis suggests many homeowners may be focused on the wrong risks. While fireworks dominate headlines every July, Mercury found that water damage, weather-related losses and theft generated far more homeowner claims during the holiday period than fireworks.
GuruFocus·Jun 29, 2026
Forecasters Say El Niño Is Developing; Here's What Homeowners Should Know NowForecasters Say El Niño Is Developing; Here's What Homeowners Should Know Now PR Newswire LOS ANGELES, June 29,
Peers Comparison
Key metrics vs top competitors for Mercury General Corporation (MCY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $111.12 | $6.15B | 11.37 | 9.44% | 9.03% | 24.8% | 1.14% | |
| $181.72 | $2.36B | 7.31 | 20.21% | 32.64% | 30.81% | — | |
| $27.43 | $832.5M | 4.34 | 3.71% | 25.99% | 43.68% | — | |
| $28.80 | $1.7B | 12.58 | 3.62% | 0.89% | 1.53% | — | |
| $257.13 | $11.88B | 24.21 | 7.17% | 13.2% | 25.03% | — | |
| $98.27 | $5.9B | 13.14 | 9.78% | 8.39% | 12.93% | — |
Compare MCY vs Peers
Mercury General Corporation (MCY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
MCY SEC Filings & Documents
Mercury General Corporation (MCY) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 5, 2026·SEC
Material company update
Feb 17, 2026·SEC
Material company update
Nov 4, 2025·SEC
10-K Annual Reports
510-Q Quarterly Reports
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MCY Frequently Asked Questions
Mercury General Corporation (MCY) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
How fast is Mercury General Corporation growing?
Mercury General Corporation (MCY) grew revenue by 9.4% over the past year. This is steady growth.
Is MCY profitable?
Yes, Mercury General Corporation (MCY) is profitable, generating $839.8M in net income for fiscal year 2025 (9.0% net margin).
Dividend & Returns
Does MCY pay dividends?
Yes, Mercury General Corporation (MCY) pays a dividend with a yield of 1.14%. This makes it attractive for income-focused investors.
What is MCY's return on equity?
Mercury General Corporation (MCY) has a return on equity (ROE) of 24.8%. This is excellent, indicating efficient use of shareholder capital.
Industry Metrics
What is Mercury General Corporation's combined ratio?
Mercury General Corporation (MCY) has a combined ratio of 88.9%. A ratio below 100% indicates underwriting profitability.