ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN) Stock Fundamental Analysis
NASDAQ:ACGLN - Nasdaq - US03939A4040 - Currency: USD
Overall ACGLN gets a fundamental rating of 6 out of 10. We evaluated ACGLN against 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 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.
In the past 5 years ACGLN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, ACGLN belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
ACGLN has a Return On Equity of 17.29%. This is in the better half of the industry: ACGLN outperforms 79.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.96%, ACGLN is in the better half of the industry, outperforming 77.08% 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 4.07%.
The 3 year average ROIC (3.89%) for ACGLN is below the current ROIC(3.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 17.29% | ||
| ROIC | 3.96% |
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
The Profit Margin of ACGLN (21.09%) is better than 90.97% 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 21.15%, ACGLN belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
In the last couple of years the Operating Margin of ACGLN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.15% | ||
| PM (TTM) | 21.09% | ||
| 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
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 0.42, which is an excellent value as it means it would take ACGLN, only 0.42 years of fcf income to pay off all of its debts.
ACGLN has a Debt to FCF ratio of 0.42. This is amongst the best in the industry. ACGLN outperforms 81.94% of its industry peers.
ACGLN has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
ACGLN's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. ACGLN outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC8.97%
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 by -8.83% 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.
The Revenue has grown by 26.93% in the past year. This is a very strong growth!
ACGLN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.89% yearly.
EPS 1Y (TTM)-8.83%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-37.14%
Revenue 1Y (TTM)26.93%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%10.53%
3.2 Future
ACGLN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.96% yearly.
The Revenue is expected to decrease by -1.71% on average over the next years.
EPS Next Y-13.84%
EPS Next 2Y1.22%
EPS Next 3Y2.96%
EPS Next 5YN/A
Revenue Next Year9.21%
Revenue Next 2Y7.74%
Revenue Next 3Y-1.71%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2.01, the valuation of ACGLN can be described as very cheap.
Based on the Price/Earnings ratio, ACGLN is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, ACGLN is valued rather cheaply.
The Price/Forward Earnings ratio is 1.77, which indicates a rather cheap valuation of ACGLN.
ACGLN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACGLN is cheaper than 88.89% of the companies in the same industry.
ACGLN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.01 | ||
| Fwd PE | 1.77 |
4.2 Price Multiples
ACGLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACGLN is cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLN is valued cheaper than 93.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.96 | ||
| EV/EBITDA | 1.96 |
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)0.07
EPS Next 2Y1.22%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
ACGLN has a Yearly Dividend Yield of 6.70%, which is a nice return.
Compared to an average industry Dividend Yield of 3.51, ACGLN pays a better dividend. On top of this ACGLN pays more dividend than 90.28% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
5.2 History
The dividend of ACGLN is nicely growing with an annual growth rate of 118.11%!
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 51.29% 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.
DP51.29%
EPS Next 2Y1.22%
EPS Next 3Y2.96%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (6/30/2025, 8:00:00 PM)
16.77
-0.2 (-1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.34%
Inst Owner ChangeN/A
Ins Owners3.13%
Ins Owner ChangeN/A
Market Cap6.28B
Analysts80.91
Price Target21.03 (25.4%)
Short Float %0.01%
Short Ratio0.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.29%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.8%
Min EPS beat(2)14.08%
Max EPS beat(2)21.52%
EPS beat(4)3
Avg EPS beat(4)12.33%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)17.99%
EPS beat(12)11
Avg EPS beat(12)25.11%
EPS beat(16)15
Avg EPS beat(16)27.97%
Revenue beat(2)0
Avg Revenue beat(2)-5.15%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-4.29%
Revenue beat(4)1
Avg Revenue beat(4)-3.68%
Min Revenue beat(4)-6.09%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.6%
Revenue beat(12)7
Avg Revenue beat(12)1.17%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)1.61%
PT rev (3m)-5.66%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.01 | ||
| Fwd PE | 1.77 | ||
| P/S | 0.36 | ||
| P/FCF | 0.96 | ||
| P/OCF | 0.96 | ||
| P/B | 0.29 | ||
| P/tB | 0.31 | ||
| EV/EBITDA | 1.96 |
EPS(TTM)8.36
EY49.85%
EPS(NY)9.5
Fwd EY56.64%
FCF(TTM)17.4
FCFY103.78%
OCF(TTM)17.52
OCFY104.49%
SpS47.13
BVpS57.49
TBVpS54
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 17.29% | ||
| ROCE | 5.01% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 5.41% | ||
| OM | 21.15% | ||
| PM (TTM) | 21.09% | ||
| GM | N/A | ||
| FCFM | 36.92% |
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.42 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 17.11% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 29.42 | ||
| Cash Conversion | 164.22% | ||
| Profit Quality | 175.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.97%
ROIC/WACC0.44
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)-8.83%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-37.14%
EPS Next Y-13.84%
EPS Next 2Y1.22%
EPS Next 3Y2.96%
EPS Next 5YN/A
Revenue 1Y (TTM)26.93%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%10.53%
Revenue Next Year9.21%
Revenue Next 2Y7.74%
Revenue Next 3Y-1.71%
Revenue Next 5YN/A
EBIT growth 1Y7.85%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.19%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y55.37%
OCF growth 3Y24.87%
OCF growth 5Y26.64%