93.92 USD
+0.28 (+0.3%)
93.92 USD
0 (0%)
Overall ACGL gets a fundamental rating of 4 out of 10. We evaluated ACGL against 147 industry peers in the Insurance industry. Both the profitability and the financial health of ACGL get a neutral evaluation. Nothing too spectacular is happening here. ACGL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ACGL had positive earnings in the past year.
In the past year ACGL had a positive cash flow from operations.
ACGL had positive earnings in each of the past 5 years.
In the past 5 years ACGL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.12%, ACGL belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.10%, ACGL is in the better half of the industry, outperforming 76.87% of the companies in the same industry.
The Return On Invested Capital of ACGL (4.08%) is better than 65.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACGL is significantly below the industry average of 14.89%.
The last Return On Invested Capital (4.08%) for ACGL is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 17.1% | ||
| ROIC | 4.08% |
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
1.3 Margins
ACGL's Profit Margin of 21.42% is amongst the best of the industry. ACGL outperforms 89.80% of its industry peers.
ACGL's Profit Margin has improved in the last couple of years.
The Operating Margin of ACGL (21.52%) is better than 75.51% of its industry peers.
In the last couple of years the Operating Margin of ACGL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.52% | ||
| PM (TTM) | 21.42% | ||
| GM | N/A |
OM growth 3Y4.67%
OM growth 5Y-2.93%
PM growth 3Y2.45%
PM growth 5Y1.58%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACGL is destroying value.
ACGL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACGL has less shares outstanding
The debt/assets ratio for ACGL has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACGL is 0.43, which is an excellent value as it means it would take ACGL, only 0.43 years of fcf income to pay off all of its debts.
ACGL's Debt to FCF ratio of 0.43 is amongst the best of the industry. ACGL outperforms 84.35% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that ACGL is not too dependend on debt financing.
The Debt to Equity ratio of ACGL (0.12) is better than 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC8.45%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.68%.
The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
Looking at the last year, ACGL shows a quite strong growth in Revenue. The Revenue has grown by 17.15% in the last year.
Measured over the past years, ACGL shows a quite strong growth in Revenue. The Revenue has been growing by 19.89% on average per year.
EPS 1Y (TTM)-3.68%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%39.2%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%-2.05%
3.2 Future
The Earnings Per Share is expected to grow by 3.25% on average over the next years.
ACGL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y0.68%
EPS Next 2Y1.02%
EPS Next 3Y3.25%
EPS Next 5YN/A
Revenue Next Year8.14%
Revenue Next 2Y5.32%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.26, which indicates a very decent valuation of ACGL.
ACGL's Price/Earnings ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 62.59% of the companies in the same industry.
ACGL is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.93, the valuation of ACGL can be described as reasonable.
ACGL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. ACGL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACGL.
ACGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 70.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.41 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ACGL may justify a higher PE ratio.
PEG (NY)15.16
PEG (5Y)0.38
EPS Next 2Y1.02%
EPS Next 3Y3.25%
5. Dividend
5.1 Amount
No dividends for ACGL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
93.92
+0.28 (+0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-1.76%
Ins Owners3.23%
Ins Owner Change-0.38%
Market Cap34.06B
Revenue(TTM)18.93B
Net Income(TTM)4.06B
Analysts75.38
Price Target109.42 (16.5%)
Short Float %1.62%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP47.16%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.88%
Min EPS beat(2)9.27%
Max EPS beat(2)20.5%
EPS beat(4)4
Avg EPS beat(4)16.34%
Min EPS beat(4)9.27%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)14.25%
EPS beat(12)11
Avg EPS beat(12)20.65%
EPS beat(16)15
Avg EPS beat(16)22.34%
Revenue beat(2)0
Avg Revenue beat(2)-7.41%
Min Revenue beat(2)-12.59%
Max Revenue beat(2)-2.23%
Revenue beat(4)0
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-12.59%
Max Revenue beat(4)-2.23%
Revenue beat(8)3
Avg Revenue beat(8)-3.09%
Revenue beat(12)7
Avg Revenue beat(12)0.7%
Revenue beat(16)8
Avg Revenue beat(16)-1.26%
PT rev (1m)-1.05%
PT rev (3m)-0.85%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)2.07%
EPS NY rev (3m)13.14%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.8 | ||
| P/FCF | 5.41 | ||
| P/OCF | 5.37 | ||
| P/B | 1.44 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)9.15
EY9.74%
EPS(NY)9.46
Fwd EY10.07%
FCF(TTM)17.36
FCFY18.48%
OCF(TTM)17.49
OCFY18.62%
SpS52.21
BVpS65.41
TBVpS61.91
PEG (NY)15.16
PEG (5Y)0.38
Graham Number116.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 17.1% | ||
| ROCE | 5.17% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 5.51% | ||
| OM | 21.52% | ||
| PM (TTM) | 21.42% | ||
| GM | N/A | ||
| FCFM | 33.25% |
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
ROICexc(3y)3.95%
ROICexc(5y)3.65%
ROICexgc(3y)5.27%
ROICexgc(5y)4.8%
ROCE(3y)4.92%
ROCE(5y)4.54%
ROICexgc growth 3Y12.01%
ROICexgc growth 5Y3.19%
ROICexc growth 3Y11.28%
ROICexc growth 5Y2.52%
OM growth 3Y4.67%
OM growth 5Y-2.93%
PM growth 3Y2.45%
PM growth 5Y1.58%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 18.78% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 31.83 | ||
| Cash Conversion | 146.82% | ||
| Profit Quality | 155.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.45%
ROIC/WACC0.48
Cap/Depr(3y)41.7%
Cap/Depr(5y)46.55%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.43%
Profit Quality(3y)182.15%
Profit Quality(5y)183.38%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.68%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%39.2%
EPS Next Y0.68%
EPS Next 2Y1.02%
EPS Next 3Y3.25%
EPS Next 5YN/A
Revenue 1Y (TTM)17.15%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%-2.05%
Revenue Next Year8.14%
Revenue Next 2Y5.32%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-4.05%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.52%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y25.18%
OCF growth 3Y24.87%
OCF growth 5Y26.64%
ARCH CAPITAL GROUP LTD / ACGL FAQ
What is the fundamental rating for ACGL stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACGL.
What is the valuation status for ACGL stock?
ChartMill assigns a valuation rating of 6 / 10 to ARCH CAPITAL GROUP LTD (ACGL). This can be considered as Fairly Valued.
How profitable is ARCH CAPITAL GROUP LTD (ACGL) stock?
ARCH CAPITAL GROUP LTD (ACGL) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ARCH CAPITAL GROUP LTD (ACGL) stock?
The Price/Earnings (PE) ratio for ARCH CAPITAL GROUP LTD (ACGL) is 10.26 and the Price/Book (PB) ratio is 1.44.
Is the dividend of ARCH CAPITAL GROUP LTD sustainable?
The dividend rating of ARCH CAPITAL GROUP LTD (ACGL) is 0 / 10 and the dividend payout ratio is 47.16%.