Mercury General Corporation Common Stock (MCY)

FairStock Score: 86/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Mercury as a cyclical personal-auto insurer that has just come through a difficult patch. The Lynch label is TURNAROUND - returned to profit after a loss within the last three years - and the filed record supports that: in fiscal year 2023 (ended 2023-12-31), net income was $96.3 million and diluted EPS $1.74; in fiscal year 2024 (ended 2024-12-31), $468.0 million and $8.45; in fiscal year 2025 (ended 2025-12-31), $541.1 million and $9.77. In fiscal Q2 2026 (quarter ended 2026-06-30), net income was $263.5 million and diluted EPS $4.76; in fiscal Q1 2026 (quarter ended 2026-03-31), $190.4 million and $3.44. One oddity: the filed Q2 2026 revenue line is $7.5 million, which conflicts with the separately supplied latest-quarter revenue figure, so I would not anchor on revenue. At the 2026-10-26 close of $101.64, FairStock shows P/E 6.01, P/B 1.99, ROE 38.99%, ROCE 7.57%, D/E 0.34, and PEG 0.10. That is optically cheap on earnings, but P/B near 2 and ROCE below ROE tell me this is not a wide-moat franchise; auto insurance is competitive, and pricing and underwriting discipline drive results. The 1.26% dividend and beta 0.92 are modest positives. FairStock score 86 and Piotroski 5/9 suggest improvement but not pristine quality. I would want combined ratio, reserve development and catastrophe losses; CET1 and NIM are bank-specific and absent.

In plain English: Mercury General sells personal car insurance, plus some home and commercial cover. The business has improved sharply and is producing large profits, but insurance results can be hurt by claims costs and disasters. At $101.64, the shares look cheap against recent earnings and closer to fair against the company's net assets.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer