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Mercury General Corporation(MCY)
Top performer 
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for MCY
10/08/2026: MCY (5-star) is currently NOT-A-BUY. Pass it for now.
Mercury General Corporation is a established provider of personal automobile and homeowners insurance, primarily operating through an independent agency network. The company is known for its conservative underwriting discipline and long-term stability in the competitive insurance sector. Its primary growth story involves balancing necessary premium increases with efforts to improve operational efficiency through digital upgrades. Key risks include significant geographic concentration in California, regulatory pressures, and competition from national carriers with greater scale. The stock is best suited for income-oriented investors who value a history of consistent dividends, though potential investors should monitor regulatory rate filings and catastrophic loss trends.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | Mercury is a mature insurance company focused on underwriting stability rather than high-growth scaling. |
| Momentum investor | Mixed fit | Momentum is limited by the cyclical nature of insurance earnings and sensitivity to regulatory rate outcomes. |
| Value investor | Strong fit | The stock often trades based on book value and consistent dividend history, appealing to valuation-conscious investors. |
| Dividend investor | Strong fit | A history of reliable dividend payments makes this an attractive option for income-focused portfolios. |
| Low-risk investor | Mixed fit | While established, the company's concentration risk in California and insurance cycle volatility create moderate risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | Stock price moves in tandem with insurance industry cycles and interest rate changes. |
| Valuation risk | Low | As a mature insurer, valuations are generally tied to book value, limiting extreme overvaluation. |
| Competition risk (national carriers) | High | Large national insurers have superior scale to subsidize aggressive pricing and digital marketing. |
| Business quality | Medium | The business relies on successful underwriting and conservative investment of float. |
| Dividend income | Low / none | The company has a strong record of maintaining dividends for shareholders. |
| Execution risk | Medium | Success depends on accurately pricing risk and navigating state-level regulatory rate approvals. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 174.65% | Avg. Invested days 75 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 10/08/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.55B USD | Price to earnings Ratio 6.05 | 1Y Target Price 120 |
Price to earnings Ratio 6.05 | 1Y Target Price 120 | ||
Volume (30-day avg) 318.2K shares | Beta 0.91 | 52 Weeks Range 73.30 - 112.70 | Updated Date 10/08/2026 |
52 Weeks Range 73.30 - 112.70 | Updated Date 10/08/2026 | ||
Dividends yield (FY) 1.24% | Basic EPS (TTM) 16.92 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Underwriting Operations | Premiums collected from personal auto and homeowners policies minus claim payments and operating expenses. | This is the core business of collecting premiums and managing insurance risk. |
| Investment Portfolio | Income generated from the investment of insurance float in bonds and other fixed-income assets. | The company earns money by investing the cash held between the time premiums are paid and claims are settled. |
Valuation
Trailing PE 6.05 | Forward PE 19.76 | Enterprise Value 4.69B | Price to Sales(TTM) 0.86 |
Enterprise Value 4.69B | Price to Sales(TTM) 0.86 | ||
Enterprise Value to Revenue 0.74 | Enterprise Value to EBITDA - | Shares Outstanding 55.39M | Shares Floating 26.55M |
Shares Outstanding 55.39M | Shares Floating 26.55M | ||
Percent Insiders 52.03 | Percent Institutions 48.15 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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