ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN)
US03939A4040
Overall ACGLN gets a fundamental rating of 7 out of 10. We evaluated ACGLN against 140 industry peers in the Insurance industry. While ACGLN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ACGLN is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ACGLN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACGLN had positive earnings in the past year.
In the past year ACGLN had a positive cash flow from operations.
Each year in the past 5 years ACGLN has been profitable.
Each year in the past 5 years ACGLN had a positive operating cash flow.
1.2 Ratios
ACGLN has a better Return On Assets (7.70%) than 94.96% of its industry peers.
With an excellent Return On Equity value of 25.46%, ACGLN belongs to the best of the industry, outperforming 91.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.61%, ACGLN belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACGLN is in line with the industry average of 4.27%.
The last Return On Invested Capital (4.61%) for ACGLN is above the 3 year average (3.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 25.46% | ||
| ROIC | 4.61% |
ROA(3y)5.04%
ROA(5y)4.49%
ROE(3y)16.86%
ROE(5y)14.97%
ROIC(3y)3.48%
ROIC(5y)3.47%
1.3 Margins
With an excellent Profit Margin value of 35.09%, ACGLN belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
In the last couple of years the Profit Margin of ACGLN has grown nicely.
With an excellent Operating Margin value of 26.27%, ACGLN belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
ACGLN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.27% | ||
| PM (TTM) | 35.09% | ||
| GM | N/A |
OM growth 3Y6.85%
OM growth 5Y8.62%
PM growth 3Y26.86%
PM growth 5Y20.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ACGLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ACGLN has been increased compared to 1 year ago.
The number of shares outstanding for ACGLN has been reduced compared to 5 years ago.
The debt/assets ratio for ACGLN has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACGLN is 0.41, which is an excellent value as it means it would take ACGLN, only 0.41 years of fcf income to pay off all of its debts.
ACGLN's Debt to FCF ratio of 0.41 is amongst the best of the industry. ACGLN outperforms 89.21% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that ACGLN is not too dependend on debt financing.
ACGLN has a Debt to Equity ratio of 0.12. This is in the better half of the industry: ACGLN outperforms 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC7.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.28%, which is quite good.
Measured over the past years, ACGLN shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.84% on average per year.
ACGLN shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.27%.
Measured over the past years, ACGLN shows a quite strong growth in Revenue. The Revenue has been growing by 19.58% on average per year.
EPS 1Y (TTM)17.28%
EPS 3Y84.29%
EPS 5Y30.84%
EPS Q2Q%-13.85%
Revenue 1Y (TTM)30.27%
Revenue growth 3Y16.5%
Revenue growth 5Y19.58%
Sales Q2Q%20.63%
3.2 Future
Based on estimates for the next years, ACGLN will show a small growth in Earnings Per Share. The EPS will grow by 5.34% on average per year.
Based on estimates for the next years, ACGLN will show a quite strong growth in Revenue. The Revenue will grow by 12.74% on average per year.
EPS Next Y7.72%
EPS Next 2Y4.48%
EPS Next 3Y5.34%
EPS Next 5YN/A
Revenue Next Year20.61%
Revenue Next 2Y16.64%
Revenue Next 3Y12.74%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ACGLN is valuated cheaply with a Price/Earnings ratio of 2.10.
Based on the Price/Earnings ratio, ACGLN is valued cheaper than 89.21% of the companies in the same industry.
ACGLN is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 2.16, the valuation of ACGLN can be described as very cheap.
Based on the Price/Forward Earnings ratio, ACGLN is valued cheaply inside the industry as 87.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, ACGLN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.1 | ||
| Fwd PE | 2.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACGLN is valued cheaply inside the industry as 91.37% of the companies are valued more expensively.
93.53% of the companies in the same industry are more expensive than ACGLN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.12 | ||
| EV/EBITDA | 2.09 |
4.3 Compensation for Growth
ACGLN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACGLN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)0.07
EPS Next 2Y4.48%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
ACGLN has a Yearly Dividend Yield of 5.68%, which is a nice return.
ACGLN's Dividend Yield is rather good when compared to the industry average which is at 4.25. ACGLN pays more dividend than 89.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ACGLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
5.2 History
The dividend of ACGLN has a limited annual growth rate of 0.55%.
ACGLN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)0.55%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ACGLN pays out 0.71% of its income as dividend. This is a sustainable payout ratio.
ACGLN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.71%
EPS Next 2Y4.48%
EPS Next 3Y5.34%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (11/21/2024, 8:10:33 PM)
19.97
+0.2 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.1 | ||
| Fwd PE | 2.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)0.27
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 25.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.27% | ||
| PM (TTM) | 35.09% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
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Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.28%
EPS 3Y84.29%
EPS 5Y
EPS Q2Q%
EPS Next Y7.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.27%
Revenue growth 3Y16.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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