MERCURY GENERAL CORP (MCY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MERCURY GENERAL CORP Do?
Mercury 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. MERCURY GENERAL CORP (MCY) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Gabriel Tirador and employs approximately 4,300 people, headquartered in LOS ANGELES, California. With a market capitalization of $4.8B, MCY is one of the notable companies in the Financials sector.
MERCURY GENERAL CORP (MCY) Stock Rating — Reduce (April 2026)
As of April 2026, MERCURY GENERAL CORP receives a Reduce rating with a composite score of 40.1/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.MCY ranks #2,659 out of 4,446 stocks in our coverage universe. Within the Financials sector, MERCURY GENERAL CORP ranks #677 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MCY Stock Price and 52-Week Range
MERCURY GENERAL CORP (MCY) currently trades at $92.29. The stock lost $1.81 (1.9%) in the most recent trading session. The 52-week high for MCY is $100.06, which means the stock is currently trading -7.8% from its annual peak. The 52-week low is $47.06, putting the stock 96.1% above its annual trough. Recent trading volume was 42K shares, suggesting relatively thin trading activity.
Is MCY Overvalued or Undervalued? — Valuation Analysis
MERCURY GENERAL CORP (MCY) carries a value factor score of 32/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 9.23x, compared to the Financials sector average of 14.88x — a discount of 38%. The price-to-book ratio stands at 2.03x, versus the sector average of 1.22x. The price-to-sales ratio is 0.83x, compared to 0.90x for the average Financials stock. On an enterprise value basis, MCY trades at 12.04x EV/EBITDA, versus 3.26x for the sector.
At current multiples, MERCURY GENERAL CORP trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
MERCURY GENERAL CORP Profitability — ROE, Margins, and Quality Score
MERCURY GENERAL CORP (MCY) earns a quality factor score of 25/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 22.4%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.7% versus the sector average of 1.2%.
On a margin basis, MERCURY GENERAL CORP reports gross margins of 99.8%. The operating margin is 8.6% (sector: 21.8%). Net profit margin stands at 7.1%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.1% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
MCY Debt, Balance Sheet, and Financial Health
MERCURY GENERAL CORP has a debt-to-equity ratio of 24.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $575M. Cash and equivalents stand at $1.32B.
MCY has a beta of 0.62, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for MERCURY GENERAL CORP is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
MERCURY GENERAL CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, MERCURY GENERAL CORP reported revenue of $5.99B and earnings per share (EPS) of $3.66. Net income for the quarter was $541M. Gross margin was 99.8%. Operating income came in at $415M.
In Q4 2025, MERCURY GENERAL CORP reported revenue of $1.53B. Net income for the quarter was $203M.
In FY 2025, MERCURY GENERAL CORP reported revenue of $5.99B and earnings per share (EPS) of $9.77. Net income for the quarter was $541M. Gross margin was 99.8%. Operating income came in at $664M.
In Q3YTD 2025, MERCURY GENERAL CORP reported revenue of $4.44B. Net income for the quarter was $339M.
Over the past 8 quarters, MERCURY GENERAL CORP has demonstrated a growth trajectory, with revenue expanding from $2.86B to $5.99B. Investors analyzing MCY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MCY Dividend Yield and Income Analysis
MERCURY GENERAL CORP (MCY) currently pays a dividend yield of 1.5%. At this yield, a $10,000 investment in MCY stock would generate approximately $$150.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning MCY yields less than the typical sector peer. The net margin of 7.1% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
MCY Momentum and Technical Analysis Profile
MERCURY GENERAL CORP (MCY) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MCY vs Competitors — Financials Sector Ranking and Peer Comparison
Within the Financials sector, MERCURY GENERAL CORP (MCY) ranks #677 out of 891 stocks based on the Blank Capital composite score. This places MCY in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.
Comparing MCY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MCY vs S&P 500 (SPY) comparison to assess how MERCURY GENERAL CORP stacks up against the broader market across all factor dimensions.
MCY Next Earnings Date
No upcoming earnings date has been announced for MERCURY GENERAL CORP (MCY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MCY? — Investment Thesis Summary
The quantitative profile for MERCURY GENERAL CORP suggests caution. The quality score of 25/100 flags below-average profitability. The value score of 32/100 indicates premium valuation. Low volatility (stability score 84/100) reduces downside risk.
In summary, MERCURY GENERAL CORP (MCY) earns a Reduce rating with a composite score of 40.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MCY stock.
Related Resources for MCY Investors
Explore more research and tools: MCY vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare MCY head-to-head with peers: MCY vs WTM, MCY vs OPY, MCY vs ACT.