Earnings Watch_Mercury General Corporation (MCY)

Company Profile:

Mercury General Corporation, together with its subsidiaries, writes personal automobile insurance. The company also writes homeowners, commercial automobile, commercial property, mechanical breakdown, fire, and umbrella insurance. Its automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products covers dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents, 100% owned insurance agents, and direct channels in Arizona, California, Florida, Georgia, Illinois, Michigan, Nevada, New Jersey, New York, Oklahoma, Pennsylvania, Texas, and Virginia. Mercury General Corporation was founded in 1960 and is headquartered in Los Angeles, California.

Recent News:

Mercury General Corporation reported that on Monday, August 3, 2015, the Company will release results for its second quarter ended June 30, 2015. The Company will host an investor conference call and webcast that same day at 10:00 A.M. Pacific Time (1:00 P.M. Eastern Time) to review the Company’s results of operations for the second quarter period.

Mercury General Corp. reported first-quarter net income of $26.2 million. It had profit of 47 cents. Earnings, adjusted for investment costs, were 59 cents per share. Revenue was $754.5 million in the period.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MCY’s strengths can be seen in its better growth, better profitability, better solvency and strong efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 53.24. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and sector. We rate Mercury General Corporation (MCY) a STRONG BUY.