Home Sectors Financial Services Present Fundamentals: Mercury General Corporation (NYSE: MCY)

Present Fundamentals: Mercury General Corporation (NYSE: MCY)

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Mercury General Corporation trades as part of the property and casualty insurance industry and is in the financial services sector. The company CEO is Gabriel Tirador. Mercury General Corp is an insurance holding company. It is engaged in writing personal automobile insurance as well as homeowners, commercial automobile, commercial property, mechanical breakdown, and umbrella insurance.

Previous Intraday Trading Performance:

The MCY stock showed a previous change of 1.26% with an open at 49.52 and a close of 49.99. It reached an intraday high of 50.03 and a low of 48.80.

PR Newswire:  Mercury General Corporation To Report Third Quarter Results On October 29, 2018

Liquidity:

The stock has a market cap of $2.8b with 55.3m shares outstanding, of which the float is 36.4m shares. Trading volume reached 173,001 shares compared to its average volume of 335,618 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Mercury General Corporation shares returned 0.08% and in the past 30 trading days it returned -5.84%. Over three months, it changed 14.57%. In one year it has changed -6.74% and within that year its 52-week high was 60.19 and its 52-week low was 41.40. MCY stock is 20.74% above its 52 Week Low.

Our calculations show a 200 day moving average of 47.34 and a 50 day moving average of 51.31. Currently MCY stock is trading 5.59% above its 200 day moving average.

SeekingAlpha:  U.S. Dividend Stocks On Discount – September 2018

Earnings:

The last annual fiscal EPS for the company was reported at 2.62 that ended on 31st of December 2017, which according to the previous close, that is a PE of 19.08. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.60. The TTM EPS is 1.70, which comes to a TTM PE of 29.41. Historically, the PE high was 47.40 and the PE low was 15.80. If the stock reached its PE low, that would represent a price of 26.86, which is a decrease of -46.28%.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.88
03-31-2018:  0.07
12-31-2017:  0.15
09-30-2017:  0.60

The dividend per share is currently 2.50, which is a dividend yield of 5.00%. MCY stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 7.09, which means it may be overvalued by -604.78%

Indicators to Watch:

Based on the latest filings, there is 50.00% of institutional ownership. Short-interest is 3,051,335, which is 5.51% of shares outstanding. The short-interest ratio or days-to-cover ratio is 9.24. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.56

SeekingAlpha:  U.S. Dividend Stocks On Discount – September 2018

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 4.77%, return on assets is 1.63%, profit margin is 1.39%, price-to-sales is 1.08 and price-to-book is 1.60.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.