Professional
Added to YB: 2025-01-30
Pitch date: 2025-01-29
MCY [bearish]
Mercury General Corporation
-89.2%
current return
Author Info
Upgrade to Yellowbrick Premium to unlock investor returns. Upgrade to Yellowbrick Premium
Company Info
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.
Market Cap
$4.9B
Pitch Price
$49.32
Price Target
N/A
Dividend
1.45%
EV/EBITDA
6.56
P/E
11.08
EV/Sales
0.72
Sector
Insurance
Category
turnaround
Show full summary:
Mercury General (MCY) Could Face Dividend Cuts, Capital Raise After Fire Losses
MCY short: Est. $2B+ gross losses from LA fires vs $1.3B reinsurance. 1300+ policies in affected areas. 60%+ homes destroyed, values 2-4x CA avg. Reinsurance dispute likely. $542M+ capital needed. Dividend, new premiums at risk. Management avoiding transparency. Strategy questioned post-fires. Ongoing bad news drip.
Read full article (4 min)