Mercury General Corporation logo MCY - Mercury General Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY 1
BUY 0
HOLD 5
SELL 1
STRONG
SELL 0
| PRICE TARGET: $90.00 DETAILS
HIGH: $90.00
LOW: $90.00
MEDIAN: $90.00
CONSENSUS: $90.00
DOWNSIDE: 12.06%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Banks, Insurers & Asset Managers

AlphaQuality — archetype-weighted quantitative grade

B- 65.5 / 100 composite

Composite Grade

Composite of six pillars weighted for banks, insurers & asset managers businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
D+ 40.5

Scored using loss ratio — insurer-archetype substitution.

  • Loss Ratio 82.3% 13/100
  • Loss Ratio Trend -1.48 pp/yr 92/100
Contributes 10.1 pts toward composite.

Capital Efficiency

Weight: 15%
C- 49.0
  • 5yr Avg ROE 6.1% 41/100
  • 5yr Share-Count CAGR 0.0% 65/100
Contributes 7.4 pts toward composite.

Growth Quality

Weight: 10%
A- 82.6

Scored using premium growth cross-checked against loss-ratio trend — insurer-archetype substitution.

  • 5yr Premium CAGR 9.1% 78/100
  • Loss Ratio Trend (growth quality check) -1.48 pp/yr 92/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 8.3 pts toward composite.

Cash Generation

Weight: 15%
B+ 77.8

Scored using reserve development and loss-ratio stability — insurer-archetype substitution.

  • Reserve Development 1.7% 89/100
  • Loss Ratio Stability (σ) 0.26 61/100
Contributes 11.7 pts toward composite.

Balance Sheet

Weight: 25%
A+ 93.0

Scored using premiums-to-surplus — insurer-archetype substitution.

  • Premiums / Surplus 2.28x 88/100
  • Interest Coverage (EBIT/Int) 24.19x 100/100
Contributes 23.3 pts toward composite.

Stability

Weight: 10%
C- 47.1
  • EPS Volatility (σ/μ) 0.68 16/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 6 67/100
Contributes 4.7 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Dumping

1 of 3 gurus held; 1 added; 2 full exits.

Holders
1 -2
Avg Δ position
+8.0%
New buys
0
Full exits
2
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (25%) — Loss Ratio, Loss Ratio Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Premium CAGR, Loss Ratio Trend (growth quality check), Revenue-Growth Years (5)
  • Cash Generation (15%) — Reserve Development, Loss Ratio Stability (σ)
  • Balance Sheet (25%) — Premiums / Surplus, Interest Coverage (EBIT/Int)
  • Stability (10%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.