Mercury General Corporation cash flow to debt ratio of 185.26% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Mercury General Corporation's free cash flow has increased 3.81% from $990.98M last year to $1.03B, signaling increasing performance

Mercury General Corporation's debt to equity ratio is 0.34, which means that the company's assets are healthy financed, signaling financial stability.

Mercury General Corporation's debt has increased relative to shareholder equity from 0.30 last year to 0.34 today, signaling weakened financials

Mercury General Corporation has a net cash position, so leverage is healthy.

Mercury General Corporation's interest coverage ratio of 40.12 indicates that earnings with good margin can cover interest payments on company debt

Mercury General Corporation's profit margin has increased (72.85%) in the last year from 8.55% to 14.77%, signaling increasing performance

Mercury General Corporation's short-term liabilities of $6.37B exceed its short-term assets of $2.67B, signaling financial risk

Mercury General Corporation's return on assets of 8.89% is higher than the 5.00% threshold, indicating efficient asset utilization

Mercury General Corporation's return on equity of 37.19%, is higher than 15.00%, indicating good performance

Mercury General Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Mercury General Corporation had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Mercury General Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Mercury General Corporation has a free cash flow yield of 17.37%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Mercury General Corporation's yearly earnings has increased 15.63% since last year from $467.95M to $541.09M, signaling increasing performance

Mercury General Corporation's yearly revenue has increased 9.44% since last year from $5.48B to $5.99B, signaling increasing performance

ROIC 33.97% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Mercury General Corporation's 3-year revenue CAGR of 18.04% is positive, indicating growing revenue over the past 3 years

Mercury General Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Mercury General Corporation had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Mercury General Corporation is undervalued relative to its fair value price of 342.70 based on Discounted Cash Flow model

Mercury General Corporation has an earnings yield of 15.82%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Mercury General Corporation is undervalued relative to its fair value price of 109.99 based on EBITDA multiple model

Mercury General Corporation has an EV/EBITDA ratio of 6.33x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Mercury General Corporation is undervalued relative to its fair value price of 163.28 based on Earnings Fair Value model

Mercury General Corporation has a PEG-ratio under 1 which is considered undervalued

Mercury General Corporation has a price-to-book ratio of 2.09x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Mercury General Corporation has a price-to-sales ratio of 0.93x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue