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Is this Large Market Cap Stock target price reasonable for Mercury General Corporation (NYSE:MCY)?

The company in question is, Mercury General Corporation (NYSE:MCY) currently with a stock price of 54.91 (0.38% today). The market cap for Mercury General Corporation is 2993.73, and is in the sector Financial, and Property & Casualty Insurance industry. The target price for Mercury General Corporation is 46.5. Currently Mercury General Corporation is trading with a P/E of 27.27, and a forward P/E of 21.55. Average volume for Mercury General Corporation is 128.67 and so far today it is 46704.

Performance in the last year for Mercury General Corporation has been 12.08%. For EPS growth, Mercury General Corporation has seen a growth of -58.30%, and is looking to grow in the next year to 65.56%. More long term stats show that EPS growth has been -13.40% over the last five years and could be 8.00% for the next five years. Mercury General Corporation has seen sales growth quarter over quarter at 18.10%, with EPS growth quarter over quarter at 405.70%. The 20-day simple moving average is 2.48%, with the 200-day simple moving average coming to 7.16%.

Since the IPO date for Mercury General Corporation on the 3/26/1990, Mercury General Corporation has seen performance year to date to be 21.62%. With Mercury General Corporation trading at 54.91, the dividend yield is 4.53%, and the EPS is 2.01.

So could Mercury General Corporation, be undervalued? Well as said before P/E is 27.27. The PEG is 3.41, P/S is 0.93 and the P/B is at 1.66. The P/cash is 12.83, with P/free cash flow at 46.63.

Mercury General Corporation ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.16, and total debt/equity at 0.16.

In terms of margins, Mercury General Corporation has a gross margin of *TBA, an operating margin of 4.00% and a profit margin of 3.40%.Payout ratio for Mercury General Corporation is 123.40%. Return on assets come to 2.40% with return on investment coming to 3.70%.

Insider ownership for Mercury General Corporation, is at 0.10% and institutional ownership comes to 44.60%. Outstanding shares are at 54.73. While shares float is 27.17. The float short is currently 6.92%, and short ratio is 14.61.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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