Mercury General Return On Asset vs. EBITDA
| MCY Stock | USD 71.69 0.93 1.28% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 1.02 | 0.9396 |
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For Mercury General profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mercury General to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mercury General utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mercury General's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mercury General over time as well as its relative position and ranking within its peers.
Mercury |
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mercury General. If investors know Mercury will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mercury General listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.82) | Dividend Share 1.27 | Earnings Share 9.91 | Revenue Per Share 99.062 | Quarterly Revenue Growth 0.437 |
The market value of Mercury General is measured differently than its book value, which is the value of Mercury that is recorded on the company's balance sheet. Investors also form their own opinion of Mercury General's value that differs from its market value or its book value, called intrinsic value, which is Mercury General's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mercury General's market value can be influenced by many factors that don't directly affect Mercury General's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mercury General's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mercury General is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercury General's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Mercury General EBITDA vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mercury General's current stock value. Our valuation model uses many indicators to compare Mercury General value to that of its competitors to determine the firm's financial worth. Mercury General is considered to be number one stock in return on asset category among its peers. It is regarded second in ebitda category among its peers totaling about 3,274,866,221 of EBITDA per Return On Asset. At this time, Mercury General's EBITDA is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Mercury General's earnings, one of the primary drivers of an investment's value.Mercury EBITDA vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Mercury General |
| = | 0.0598 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Mercury General |
| = | 195.84 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Mercury EBITDA Comparison
Mercury General is currently under evaluation in ebitda category among its peers.
Mercury General Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mercury General, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mercury General will eventually generate negative long term returns. The profitability progress is the general direction of Mercury General's change in net profit over the period of time. It can combine multiple indicators of Mercury General, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 99.4 M | 161.5 M | |
| Net Income | 96.3 M | 133.3 M | |
| Income Tax Expense | 3.1 M | 2.9 M | |
| Income Before Tax | 99.4 M | 126.7 M | |
| Total Other Income Expense Net | 99.4 M | 104.4 M | |
| Net Loss | -461.4 M | -438.3 M | |
| Net Loss | -101.8 M | -96.7 M | |
| Interest Income | 19.8 M | 14.8 M | |
| Net Interest Income | -20.8 M | -21.8 M | |
| Change To Netincome | 410.1 M | 430.6 M | |
| Net Income Per Share | 1.74 | 1.62 | |
| Income Quality | 4.70 | 4.94 | |
| Net Income Per E B T | 0.97 | 0.59 |
Mercury Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mercury General. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Mercury General position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Mercury General's important profitability drivers and their relationship over time.
Use Mercury General in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Mercury General position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mercury General will appreciate offsetting losses from the drop in the long position's value.Mercury General Pair Trading
Mercury General Pair Trading Analysis
The ability to find closely correlated positions to Mercury General could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mercury General when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mercury General - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mercury General to buy it.
The correlation of Mercury General is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mercury General moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mercury General moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mercury General can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Mercury General position
In addition to having Mercury General in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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FinTech
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 constituents at this time.
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Additional Tools for Mercury Stock Analysis
When running Mercury General's price analysis, check to measure Mercury General's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mercury General is operating at the current time. Most of Mercury General's value examination focuses on studying past and present price action to predict the probability of Mercury General's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mercury General's price. Additionally, you may evaluate how the addition of Mercury General to your portfolios can decrease your overall portfolio volatility.