| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 6.0x | 17.8x | Top tier | |
Growth | 79 | 10.0% | 7.1% | Top tier | |
Quality | 98 | — | — | Top tier | |
Safety | 33 | — | — | Bottom tier | |
Capital Return | 18 | 1.24% | 2.12% | Bottom tier | |
Momentum | 84 | 39.5% | 2.9% | Top tier | |
Sentiment | 24 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Mercury General Corporation is an insurance company that generates revenue primarily from insurance policy premiums and investment income. Personal auto and homeowners insurance accounted for 88% of total companywide earned premiums in fiscal year 2024, making underwriting results in these two businesses the most important operating driver, while investment portfolio income provides another source of earnings.
In quarter 1 of fiscal year 2026, Mercury General reported revenue of $1.5 billion, net income of $190.4 million, and earnings per share of $3.44. EDGAR data shows gross profit of $1.5 billion, equal to revenue under the classification presented in the data, without a more recent breakdown of each segment's contribution to revenue.
For fiscal year 2025, revenue was $6.0 billion, net income was $541.1 million, and earnings per share were $9.77. Meanwhile, trailing twelve-month data classified under 2026 shows revenue of $6.1 billion, net income of $839.8 million, and earnings per share of approximately $15.16, reflecting a higher earnings level than fiscal year 2025 in the latest available figures.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus for MCY is Neutral, with a uniform target of $90; there is no dispersion between the highest and lowest targets because both equal $90. This target is approximately 20% below the 52-week range high of $113.06 and approximately 21% above its low of $74.29, reflecting a balance between improving underlying earnings and risks from fires and reinsurance costs.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Mercury General generates its revenue primarily from insurance premiums, with an additional contribution from income on its investment portfolio. Personal auto and homeowners insurance accounted for 88% of total earned premiums in fiscal year 2024. Net premiums written reached $5.4 billion in fiscal year 2024, an increase of 20.5%, while after-tax investment income was $61.5 million in quarter 4 of fiscal year 2024.
The company reported revenue of $1.5 billion in quarter 1 of fiscal year 2026. Net income was $190.4 million, while earnings per share reached $3.44. EDGAR data shows gross profit of $1.5 billion under the classification provided, without a more recent breakdown of the revenue mix by segment.
On February 12, 2025, management estimated gross losses from the January 2025 fires at between $1.6 billion and $2.0 billion, before the company's share of California FAIR Plan losses. It estimated net pre-tax losses at between $155 million and $325 million, in addition to reinstatement premiums of between $80 million and $101 million. The company had received approximately 2,700 claims and identified about 650 total losses under homeowners policies and about 150 total losses distributed across landlord, renters, condominium, and commercial property policies.
The reinsurance program provided limits of $1.29 billion per occurrence after the retention was exceeded, along with up to $20 million of excess-of-loss coverage per property. As of the morning of the February 12, 2025 call, Mercury General had billed reinsurers for $1 billion and received $531 million. However, the classification of Palisades and Eaton as one occurrence or two occurrences remained unresolved as of that date, although management said it had received no objection from reinsurers regarding the clarity of the contract language.
The combined ratio was 91.4% in quarter 4 of fiscal year 2024 and declined to 88.3% excluding catastrophe losses. For fiscal year 2024, the combined ratio was 96%, or 90.5% excluding catastrophes. The personal auto business also recorded an underlying combined ratio of 92.1% and the homeowners business 76.1% during fiscal year 2024, but management expected the overall ratio to move over time toward a target of approximately 96%.
The provided analyst consensus is Neutral, with an average price target of $90. The highest and lowest targets both equal $90, so the consensus does not present a diverse range of estimates. The target is approximately 20% below the 52-week range high of $113.06 and approximately 21% above the low of $74.29, placing it between the endpoints of the historical range rather than near its high.
