Mercury General Corporation [NYSE:MCY]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Mercury General Corporation [MCY], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give MCY an Hold rating. Its stock price has been found in the range of 40.90 to 61.91. This is compared to its latest closing price of $49.67.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Mercury General Corporation [MCY] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Dec-18 Mercury General Corporation [MCY] generated $0.82 billion in sales. That’s 9.91% lower than the average estimate of $0.91 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Mon 29 Apr (In 76 Days).
Fundamental Analysis of Mercury General Corporation [MCY]
Now let’s turn to look at profitability: with a current Operating Margin for Mercury General Corporation [MCY] sitting at +5.38, this company’s Net Margin is now 2.80%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 8.51, and its Return on Invested Capital has reached 7.00%. Its Return on Equity is 8.25, and its Return on Assets is 2.91. These metrics suggest that this Mercury General Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Mercury General Corporation [MCY] has generated a Total Debt to Total Equity ratio of 21.08. Similarly, its Total Debt to Total Capital is 17.41, while its Total Debt to Total Assets stands at 7.19. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 21.08, and its Long-Term Debt to Total Capital is 17.41. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
The Enterprise Value to Sales for this firm is now 0.89, and its Total Debt to Enterprise Value stands at 0.11. Mercury General Corporation [MCY] has a Price to Book Ratio of 1.68, a Price to Cash Flow Ratio of 8.66.
Shifting the focus to workforce efficiency, Mercury General Corporation [MCY] earns $773,480 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.67. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 0.76.
Let’s now turn our attention to trading performance: Mercury General Corporation [MCY] has 55.28M shares outstanding, amounting to a total market cap of $2.75B. Its stock price has been found in the range of 42.34 to 61.83. At its current price, it has moved by -17.66% from its 52-week high, and it has moved 20.24% from its 52-week low.
This stock’s Beta value is currently 0.28, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.95. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Mercury General Corporation [MCY] a Reliable Buy?
Mercury General Corporation [MCY] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.