ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN) Stock Fundamental Analysis
USA - NASDAQ:ACGLN - US03939A4040
17.96 USD
-0.24 (-1.32%)
ACGLN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. Both the profitability and the financial health of ACGLN get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ACGLN. 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.
In the past 5 years ACGLN has always 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 4.69%. This is amongst the best in the industry. ACGLN outperforms 84.93% of its industry peers.
ACGLN has a Return On Equity of 16.03%. This is in the better half of the industry: ACGLN outperforms 76.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.80%, ACGLN is in the better half of the industry, outperforming 71.23% 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 4.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 16.03% | ||
| ROIC | 3.8% |
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
ACGLN's Profit Margin of 19.83% is amongst the best of the industry. ACGLN outperforms 93.15% of its industry peers.
ACGLN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.17%, ACGLN is in the better half of the industry, outperforming 78.77% of the companies in the same industry.
ACGLN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.17% | ||
| PM (TTM) | 19.83% | ||
| 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), ACGLN is destroying value.
The number of shares outstanding for ACGLN has been increased compared to 1 year ago.
ACGLN has less shares outstanding than it did 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 0.45, which is an excellent value as it means it would take ACGLN, only 0.45 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.45, ACGLN belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
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 75.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.52
WACC7.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ACGLN have decreased strongly by -14.77% in the last year.
Measured over the past years, ACGLN shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.96% on average per year.
Looking at the last year, ACGLN shows a very strong growth in Revenue. The Revenue has grown by 24.70%.
The Revenue has been growing by 19.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%
3.2 Future
ACGLN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.13% yearly.
Based on estimates for the next years, ACGLN will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
EPS Next Y-11.02%
EPS Next 2Y0.96%
EPS Next 3Y3.13%
EPS Next 5YN/A
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
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
Based on the Price/Earnings ratio of 2.15, the valuation of ACGLN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 89.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACGLN to the average of the S&P500 Index (27.27), we can say ACGLN is valued rather cheaply.
A Price/Forward Earnings ratio of 1.90 indicates a rather cheap valuation of ACGLN.
Based on the Price/Forward Earnings ratio, ACGLN is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.77. ACGLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | 1.9 |
4.2 Price Multiples
93.15% of the companies in the same industry are more expensive than ACGLN, based on the Enterprise Value to EBITDA ratio.
ACGLN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACGLN is cheaper than 93.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.09 | ||
| EV/EBITDA | 2.11 |
4.3 Compensation for Growth
ACGLN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y0.96%
EPS Next 3Y3.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, ACGLN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, ACGLN pays a better dividend. On top of this ACGLN pays more dividend than 87.67% of the companies listed in the same industry.
ACGLN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
On average, the dividend of ACGLN grows each year by 118.11%, which is quite nice.
ACGLN has been paying a dividend for over 5 years, so it has already some track record.
ACGLN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
ACGLN pays out 51.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACGLN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.79%
EPS Next 2Y0.96%
EPS Next 3Y3.13%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (9/15/2025, 8:00:00 PM)
17.96
-0.24 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.39%
Inst Owner ChangeN/A
Ins Owners3.13%
Ins Owner ChangeN/A
Market Cap6.70B
Analysts78.33
Price Target21.84 (21.6%)
Short Float %0.01%
Short Ratio0.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.79%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.67%
Min EPS beat(2)9.27%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)11.13%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)16.8%
EPS beat(12)11
Avg EPS beat(12)24.14%
EPS beat(16)15
Avg EPS beat(16)27.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.12%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-2.23%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)1.66%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)1.68%
Revenue beat(16)8
Avg Revenue beat(16)-1.23%
PT rev (1m)0.22%
PT rev (3m)6.84%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)3.46%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | 1.9 | ||
| P/S | 0.36 | ||
| P/FCF | 1.09 | ||
| P/OCF | 1.09 | ||
| P/B | 0.29 | ||
| P/tB | 0.31 | ||
| EV/EBITDA | 2.11 |
EPS(TTM)8.37
EY46.6%
EPS(NY)9.45
Fwd EY52.61%
FCF(TTM)16.42
FCFY91.41%
OCF(TTM)16.54
OCFY92.09%
SpS49.91
BVpS61.74
TBVpS58.2
PEG (NY)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 16.03% | ||
| ROCE | 4.81% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.85% | ||
| ROICexgc | 5.18% | ||
| OM | 20.17% | ||
| PM (TTM) | 19.83% | ||
| GM | N/A | ||
| FCFM | 32.89% |
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%
ROICexcg growth 3Y12.01%
ROICexcg 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 | 0.45 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 16.2% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 29.35 | ||
| Cash Conversion | 152.76% | ||
| Profit Quality | 165.86% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.25%
ROIC/WACC0.52
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)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
EPS Next Y-11.02%
EPS Next 2Y0.96%
EPS Next 3Y3.13%
EPS Next 5YN/A
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
Revenue Next 5YN/A
EBIT growth 1Y-6.59%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.58%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y37.94%
OCF growth 3Y24.87%
OCF growth 5Y26.64%