ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN) Stock Fundamental Analysis
NASDAQ:ACGLN - Nasdaq - US03939A4040 - Currency: USD
Taking everything into account, ACGLN scores 7 out of 10 in our fundamental rating. ACGLN was compared to 144 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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 Return On Assets of 7.70%. This is amongst the best in the industry. ACGLN outperforms 92.96% of its industry peers.
With an excellent Return On Equity value of 25.46%, ACGLN belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.61%, ACGLN is in the better half of the industry, outperforming 78.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACGLN is in line with the industry average of 4.59%.
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
ACGLN has a Profit Margin of 35.09%. This is amongst the best in the industry. ACGLN outperforms 96.48% of its industry peers.
ACGLN's Profit Margin has improved in the last couple of years.
ACGLN has a better Operating Margin (26.27%) than 88.73% of its industry peers.
In the last couple of years the Operating Margin of ACGLN has grown nicely.
| 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.
ACGLN has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 0.41, ACGLN belongs to the top of the industry, outperforming 88.03% of the companies in the same industry.
ACGLN has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
ACGLN's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. ACGLN outperforms 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC7.63%
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.
The Revenue has grown by 30.27% in the past year. This is a very strong growth!
The Revenue has been growing by 19.58% on average over the past years. This is quite good.
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
ACGLN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.58% yearly.
ACGLN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.41% yearly.
EPS Next Y6.77%
EPS Next 2Y3.94%
EPS Next 3Y5.58%
EPS Next 5YN/A
Revenue Next Year21.57%
Revenue Next 2Y16.98%
Revenue Next 3Y13.41%
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
The Price/Earnings ratio is 1.95, which indicates a rather cheap valuation of ACGLN.
ACGLN's Price/Earnings ratio is rather cheap when compared to the industry. ACGLN is cheaper than 87.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACGLN to the average of the S&P500 Index (28.47), we can say ACGLN is valued rather cheaply.
A Price/Forward Earnings ratio of 2.03 indicates a rather cheap valuation of ACGLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 87.32% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. ACGLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.95 | ||
| Fwd PE | 2.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 90.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLN is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.04 | ||
| EV/EBITDA | 1.97 |
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)0.29
PEG (5Y)0.06
EPS Next 2Y3.94%
EPS Next 3Y5.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.11%, ACGLN is a good candidate for dividend investing.
ACGLN's Dividend Yield is rather good when compared to the industry average which is at 3.13. ACGLN pays more dividend than 90.85% of the companies in the same industry.
ACGLN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
5.2 History
The dividend of ACGLN has a limited annual growth rate of 0.55%.
ACGLN has been paying a dividend for less than 5 years, so it still needs to build a track record.
ACGLN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.55%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
0.71% of the earnings are spent on dividend by ACGLN. This is a low number and sustainable payout ratio.
The dividend of ACGLN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0.71%
EPS Next 2Y3.94%
EPS Next 3Y5.58%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (2/4/2025, 8:24:55 PM)
18.53
+0.15 (+0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners89.4%
Inst Owner ChangeN/A
Ins Owners3.04%
Ins Owner ChangeN/A
Market Cap6.97B
Analysts80.87
Price Target23.98 (29.41%)
Short Float %0.01%
Short Ratio0.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend0.11
Dividend Growth(5Y)0.55%
DP0.71%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.87%
Min EPS beat(2)-0.36%
Max EPS beat(2)14.1%
EPS beat(4)3
Avg EPS beat(4)12.16%
Min EPS beat(4)-0.36%
Max EPS beat(4)20.43%
EPS beat(8)7
Avg EPS beat(8)22.8%
EPS beat(12)11
Avg EPS beat(12)24.34%
EPS beat(16)15
Avg EPS beat(16)30.27%
Revenue beat(2)1
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-6.09%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-6.09%
Max Revenue beat(4)4.53%
Revenue beat(8)7
Avg Revenue beat(8)4.19%
Revenue beat(12)8
Avg Revenue beat(12)0.41%
Revenue beat(16)10
Avg Revenue beat(16)3.93%
PT rev (1m)-2.71%
PT rev (3m)1.94%
EPS NQ rev (1m)-3.2%
EPS NQ rev (3m)-15.83%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.95 | ||
| Fwd PE | 2.03 | ||
| P/S | 0.43 | ||
| P/FCF | 1.04 | ||
| P/OCF | 1.03 | ||
| P/B | 0.31 | ||
| P/tB | 0.34 | ||
| EV/EBITDA | 1.97 |
EPS(TTM)9.5
EY51.27%
EPS(NY)9.13
Fwd EY49.26%
FCF(TTM)17.84
FCFY96.27%
OCF(TTM)17.98
OCFY97.03%
SpS42.95
BVpS59.2
TBVpS55.25
PEG (NY)0.29
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 25.46% | ||
| ROCE | 5.84% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 6.31% | ||
| OM | 26.27% | ||
| PM (TTM) | 35.09% | ||
| GM | N/A | ||
| FCFM | 41.53% |
ROA(3y)5.04%
ROA(5y)4.49%
ROE(3y)16.86%
ROE(5y)14.97%
ROIC(3y)3.48%
ROIC(5y)3.47%
ROICexc(3y)3.54%
ROICexc(5y)3.54%
ROICexgc(3y)4.69%
ROICexgc(5y)4.63%
ROCE(3y)4.4%
ROCE(5y)4.4%
ROICexcg growth 3Y14.3%
ROICexcg growth 5Y16.7%
ROICexc growth 3Y12.07%
ROICexc growth 5Y15.11%
OM growth 3Y6.85%
OM growth 5Y8.62%
PM growth 3Y26.86%
PM growth 5Y20.34%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 33.13% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 33.43 | ||
| Cash Conversion | 153.54% | ||
| Profit Quality | 118.36% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.63%
ROIC/WACC0.6
Cap/Depr(3y)51.1%
Cap/Depr(5y)51.43%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.48%
Profit Quality(3y)184.4%
Profit Quality(5y)177.6%
High Growth Momentum
Growth
EPS 1Y (TTM)17.28%
EPS 3Y84.29%
EPS 5Y30.84%
EPS Q2Q%-13.85%
EPS Next Y6.77%
EPS Next 2Y3.94%
EPS Next 3Y5.58%
EPS Next 5YN/A
Revenue 1Y (TTM)30.27%
Revenue growth 3Y16.5%
Revenue growth 5Y19.58%
Sales Q2Q%20.63%
Revenue Next Year21.57%
Revenue Next 2Y16.98%
Revenue Next 3Y13.41%
Revenue Next 5YN/A
EBIT growth 1Y42.88%
EBIT growth 3Y24.49%
EBIT growth 5Y29.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.05%
FCF growth 3Y26.02%
FCF growth 5Y30.08%
OCF growth 1Y86.17%
OCF growth 3Y25.82%
OCF growth 5Y29.82%