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 141 industry peers in the Insurance industry. While ACGLN has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ACGLN. Finally ACGLN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACGLN was profitable.
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 92.86% of its industry peers.
ACGLN has a better Return On Equity (25.46%) than 87.86% of its industry peers.
ACGLN's Return On Invested Capital of 4.61% is fine compared to the rest of the industry. ACGLN outperforms 79.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACGLN is in line with the industry average of 4.38%.
The 3 year average ROIC (3.48%) for ACGLN is below the current ROIC(4.61%), indicating increased profibility in the last year.
| 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 96.43% of its industry peers.
ACGLN's Profit Margin has improved in the last couple of years.
ACGLN has a Operating Margin of 26.27%. This is amongst the best in the industry. ACGLN outperforms 88.57% of its industry peers.
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.
Compared to 1 year ago, ACGLN has more shares outstanding
ACGLN has less shares outstanding than it did 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.
ACGLN has a better Debt to FCF ratio (0.41) than 87.86% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that ACGLN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, ACGLN is doing good in the industry, outperforming 79.29% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 30.84% on average over the past years. This is a very strong growth
The Revenue has grown by 30.27% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 5.38% on average over the next years.
Based on estimates for the next years, ACGLN will show a quite strong growth in Revenue. The Revenue will grow by 13.21% on average per year.
EPS Next Y7.33%
EPS Next 2Y4.25%
EPS Next 3Y5.38%
EPS Next 5YN/A
Revenue Next Year21.57%
Revenue Next 2Y16.78%
Revenue Next 3Y13.21%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.91 indicates a rather cheap valuation of ACGLN.
Based on the Price/Earnings ratio, ACGLN is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
ACGLN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 1.98, which indicates a rather cheap valuation of ACGLN.
Based on the Price/Forward Earnings ratio, ACGLN is valued cheaper than 87.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, ACGLN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.98 |
4.2 Price Multiples
92.14% of the companies in the same industry are more expensive than ACGLN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ACGLN is valued cheaper than 93.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.02 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
The 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)0.26
PEG (5Y)0.06
EPS Next 2Y4.25%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
ACGLN has a Yearly Dividend Yield of 6.26%, which is a nice return.
ACGLN's Dividend Yield is rather good when compared to the industry average which is at 4.33. ACGLN pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ACGLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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.
ACGLN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0.71%
EPS Next 2Y4.25%
EPS Next 3Y5.38%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (12/20/2024, 8:00:00 PM)
18.16
+0.13 (+0.72%)
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 Cap6.83B
Analysts80.87
Price Target24.45 (34.64%)
Short Float %0.01%
Short Ratio1.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
Dividend Growth(5Y)0.55%
DP0.71%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)3.94%
PT rev (3m)13.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.05%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.52%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.98 | ||
| P/S | 0.42 | ||
| P/FCF | 1.02 | ||
| P/OCF | 1.01 | ||
| P/B | 0.31 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | 1.94 |
EPS(TTM)9.5
EY52.31%
EPS(NY)9.18
Fwd EY50.57%
FCF(TTM)17.84
FCFY98.24%
OCF(TTM)17.98
OCFY99.01%
SpS42.95
BVpS59.2
TBVpS55.25
PEG (NY)0.26
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 Y7.33%
EPS Next 2Y4.25%
EPS Next 3Y5.38%
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 2Y16.78%
Revenue Next 3Y13.21%
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%