Latest Ratios: P/E Ratio 10.5x · EV/EBITDA 6.7x · ROE 24.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.7B | $5.2B | $3.7B | $2.1B | $1.9B | $2.9B | $2.9B | $2.7B | $2.9B | $3.0B | $3.3B |
| Enterprise Value | $4.9B | $4.5B | $3.5B | $2.1B | $2.0B | $3.0B | $3.0B | $2.8B | $2.9B | $3.0B | $3.4B |
| P/E Ratio → | 10.47 | 9.63 | 7.87 | 21.44 | — | 11.84 | 7.71 | 8.43 | — | 20.40 | 45.61 |
| P/S Ratio | 0.95 | 0.87 | 0.67 | 0.45 | 0.52 | 0.74 | 0.76 | 0.68 | 0.85 | 0.87 | 1.03 |
| P/B Ratio | 2.34 | 2.16 | 1.89 | 1.33 | 1.24 | 1.37 | 1.42 | 1.50 | 1.77 | 1.68 | 1.90 |
| P/FCF | 5.51 | 5.06 | 3.71 | 4.96 | 5.97 | 6.39 | 5.11 | 5.62 | 8.05 | 9.18 | 12.31 |
| P/OCF | 5.21 | 4.79 | 3.55 | 4.56 | 5.37 | 5.86 | 4.77 | 5.19 | 7.46 | 8.66 | 11.58 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.75 | 0.65 | 0.45 | 0.56 | 0.75 | 0.78 | 0.71 | 0.86 | 0.89 | 1.06 |
| EV / EBITDA | 6.68 | 6.07 | 5.47 | 12.25 | — | 7.96 | 5.61 | 6.38 | 103.59 | 13.65 | 27.66 |
| EV / EBIT | 7.44 | 6.47 | 5.86 | 17.01 | — | 9.51 | 6.22 | 7.15 | — | 16.66 | 45.92 |
| EV / FCF | — | 4.36 | 3.58 | 5.05 | 6.38 | 6.54 | 5.23 | 5.89 | 8.21 | 9.43 | 12.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.9% | 33.9% | 17.0% | 8.7% | -10.3% | 15.0% | 20.1% | 16.7% | 6.8% | 12.2% | 9.6% |
| Operating Margin | 11.1% | 11.1% | 10.5% | 2.1% | -18.4% | 7.5% | 12.1% | 9.5% | -0.9% | 4.9% | 2.2% |
| Net Profit Margin | 9.0% | 9.0% | 8.5% | 2.1% | -14.1% | 6.2% | 9.9% | 8.1% | -0.2% | 4.2% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.8% | 24.8% | 26.8% | 6.3% | -28.0% | 11.9% | 19.6% | 18.7% | -0.3% | 8.2% | 4.1% |
| ROA | 6.1% | 6.1% | 6.1% | 1.4% | -7.7% | 3.8% | 6.1% | 5.7% | -0.1% | 2.9% | 1.6% |
| ROIC | 28.4% | 28.4% | 25.4% | 4.6% | -26.0% | 10.4% | 17.1% | 15.8% | -1.3% | 6.8% | 2.9% |
| ROCE | 11.6% | 11.6% | 7.5% | 1.5% | -10.1% | 11.6% | 7.5% | 6.8% | -0.6% | 3.4% | 1.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.24 | 0.24 | 0.30 | 0.38 | 0.28 | 0.19 | 0.20 | 0.23 | 0.23 | 0.21 | 0.18 |
| Debt / EBITDA | 0.79 | 0.79 | 0.91 | 3.42 | — | 1.08 | 0.79 | 0.95 | 13.19 | 1.67 | 2.58 |
| Net Debt / Equity | — | -0.30 | -0.07 | 0.02 | 0.09 | 0.03 | 0.03 | 0.07 | 0.04 | 0.05 | 0.06 |
| Net Debt / EBITDA | -0.99 | -0.99 | -0.20 | 0.22 | — | 0.19 | 0.13 | 0.28 | 2.04 | 0.36 | 0.80 |
| Debt / FCF | — | -0.71 | -0.13 | 0.09 | 0.41 | 0.16 | 0.12 | 0.26 | 0.16 | 0.25 | 0.37 |
| Interest Coverage | 24.19 | 24.19 | 19.65 | 5.11 | -37.92 | 18.49 | 27.89 | 23.19 | -0.80 | 12.02 | 18.85 |
Net cash position: cash ($1.3B) exceeds total debt ($587M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.42 | 0.42 | 68.00 | — | — | 0.30 | — | 10.37 | 12.07 | 9.70 | 59.83 |
| Quick Ratio | 0.42 | 0.42 | 68.00 | — | — | 0.30 | — | 21.21 | 24.06 | 41.94 | 259.18 |
| Cash Ratio | 0.26 | 0.26 | 48.38 | — | — | 0.12 | — | 5.50 | 4.93 | 9.70 | 59.83 |
| Asset Turnover | — | 0.63 | 0.66 | 0.65 | 0.56 | 0.59 | 0.60 | 0.67 | 0.62 | 0.67 | 0.67 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.4% | 1.9% | 3.4% | 5.6% | 4.8% | 4.8% | 5.2% | 4.8% | 4.7% | 4.1% |
| Payout Ratio | 13.0% | 13.0% | 15.0% | 73.0% | — | 56.6% | 37.3% | 43.4% | — | 95.2% | 187.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.6% | 10.4% | 12.7% | 4.7% | — | 8.4% | 13.0% | 11.9% | — | 4.9% | 2.2% |
| FCF Yield | 18.2% | 19.7% | 26.9% | 20.1% | 16.7% | 15.7% | 19.6% | 17.8% | 12.4% | 10.9% | 8.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 1.2% | 1.4% | 1.9% | 3.4% | 5.6% | 4.8% | 4.8% | 5.2% | 4.8% | 4.7% | 4.2% |
| Shares Outstanding | — | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying MCY stock.
Mercury General Corporation's current P/E ratio is 10.5x. The historical average is 16.9x. This places it at the 22th percentile of its historical range.
Mercury General Corporation's current EV/EBITDA is 6.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Mercury General Corporation's return on equity (ROE) is 24.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.0%.
Based on historical data, Mercury General Corporation is trading at a P/E of 10.5x. This is at the 22th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Mercury General Corporation's current dividend yield is 1.24% with a payout ratio of 13.0%.
Mercury General Corporation has 33.9% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
Mercury General Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
California catastrophe and reserve quality
Metrics are mathematically derived from official filings.
Underwriting Recovery After 2025 Trough
Mercury's combined ratio improved to 80.5% in 2026Q2 from 110.2% in 2025Q1, as reported in quarterly financials, signaling a sharp rebound in underwriting profitability.
The combined ratio trajectory shows a dramatic recovery from the 110.2% underwriting loss in 2025Q1 to 80.5% in 2026Q2, driven by a loss ratio that fell from 104.0% to 72.8%. This improvement appears to reflect the flow-through of California rate approvals, but the sustainability hinges on whether loss severity inflation remains contained. The expense ratio's volatility, spiking to 69.0% in 2025Q4, warrants scrutiny as it may distort the underlying efficiency trend.
ROE Rebound Led by Underwriting Turnaround
ROE swung from -5.8% in 2025Q1 to 9.7% in 2026Q2, as per MCY's financial statements, with underwriting margins recovering to 19.5% from -10.2%.
The decomposition of ROE shows that the recovery is primarily underwriting-driven, with the underwriting margin improving by nearly 30 percentage points from the trough. Investment income, supported by a $1.3 billion cash position, likely provides a stable base, but the magnitude of the swing underscores the cyclicality of the P&C business. Investors should monitor whether the 2026Q2 ROE of 9.7% can be sustained as reserve releases fade.
Minimal Leverage Masks Underwriting Risk
Mercury's debt-to-equity ratio stands at 0.34% as of 2026Q2, per balance sheet data, indicating a fortress capital structure with negligible financial leverage.
The near-zero debt-to-equity ratio suggests that Mercury is not reliant on debt financing, which is typical for a P&C insurer. However, the true underwriting leverage is better measured by the premium-to-surplus ratio, which is not directly provided but can be inferred from the strong premium growth of 13.8% in 2026Q2. The conservative capital structure provides ample capacity to absorb catastrophe losses, but the concentration in California remains a key risk that financial leverage does not mitigate.
Valuation Discount Despite Strong ROE
Mercury trades at a P/B of 2.40, below Erie's 5.90 but above Kemper's 0.63, as per peer data, reflecting a market discount for its California concentration.
Relative to peers, Mercury's P/B of 2.40 is modest given its ROE of 9.7%, which is lower than HCI's 29.6% and Heritage's 42.4% but far superior to Kemper's negative ROE. The discount to Erie, which has a P/B of 5.90 and ROE of 24.5%, may be justified by Mercury's geographic concentration and regulatory risk. However, if the California rate environment continues to improve, the market may re-rate Mercury closer to its peer group.
Combined Ratio Can Mislead on Earnings Quality
The combined ratio, while improving, may overstate underwriting quality if reserve releases are masking underlying deterioration, as suggested by the 121% EPS beat in 2026Q2.
The most commonly misapplied ratio for insurers is the combined ratio, which can be distorted by prior-year reserve development. Mercury's 2026Q2 combined ratio of 80.5% appears strong, but the EPS beat of $4.76 versus $2.15 estimate suggests that favorable reserve development may have contributed significantly. Analysts should adjust the combined ratio for reserve changes to assess the true attritional loss ratio, which may be higher than reported. Additionally, catastrophe losses from California atmospheric rivers could reverse the recent improvement.