ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN) Stock Fundamental Analysis
NASDAQ:ACGLN - Nasdaq - US03939A4040 - Currency: USD
ACGLN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 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! 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.
ACGLN had positive earnings in each of the past 5 years.
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 6.02%, ACGLN belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
ACGLN's Return On Equity of 20.52% is amongst the best of the industry. ACGLN outperforms 83.92% of its industry peers.
ACGLN's Return On Invested Capital of 4.43% is fine compared to the rest of the industry. ACGLN outperforms 76.92% 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 4.47%.
The last Return On Invested Capital (4.43%) for ACGLN is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 20.52% | ||
| ROIC | 4.43% |
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 25.42% is amongst the best of the industry. ACGLN outperforms 94.41% of its industry peers.
In the last couple of years the Profit Margin of ACGLN has grown nicely.
The Operating Margin of ACGLN (23.55%) is better than 86.01% of its industry peers.
In the last couple of years the Operating Margin of ACGLN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.55% | ||
| PM (TTM) | 25.42% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACGLN is destroying value.
The number of shares outstanding for ACGLN has been increased compared to 1 year ago.
Compared to 5 years ago, ACGLN has less shares outstanding
The debt/assets ratio for ACGLN has been reduced compared to a year ago.
2.2 Solvency
ACGLN has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
ACGLN has a Debt to FCF ratio of 0.41. This is amongst the best in the industry. ACGLN outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ACGLN is not too dependend on debt financing.
ACGLN has a Debt to Equity ratio of 0.13. This is in the better half of the industry: ACGLN outperforms 78.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC7.45%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.70% over the past 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.
ACGLN shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.08%.
Measured over the past years, ACGLN shows a quite strong growth in Revenue. The Revenue has been growing by 19.89% on average per year.
EPS 1Y (TTM)9.7%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-9.24%
Revenue 1Y (TTM)27.08%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%17.11%
3.2 Future
ACGLN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.29% yearly.
ACGLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y-14.78%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
EPS Next 5YN/A
Revenue Next Year11.53%
Revenue Next 2Y9.39%
Revenue Next 3Y7.01%
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
ACGLN is valuated cheaply with a Price/Earnings ratio of 1.86.
Compared to the rest of the industry, the Price/Earnings ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 88.11% of the companies listed in the same industry.
ACGLN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
With a Price/Forward Earnings ratio of 2.18, the valuation of ACGLN can be described as very cheap.
ACGLN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACGLN is cheaper than 86.71% of the companies in the same industry.
ACGLN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 2.18 |
4.2 Price Multiples
ACGLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACGLN is cheaper than 93.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLN is valued cheaply inside the industry as 91.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.98 | ||
| EV/EBITDA | 1.95 |
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 2Y2.2%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
ACGLN has a Yearly Dividend Yield of 6.79%, which is a nice return.
Compared to an average industry Dividend Yield of 3.28, ACGLN pays a better dividend. On top of this ACGLN pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, ACGLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
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 44.62% 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.
DP44.62%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (4/24/2025, 8:00:00 PM)
After market: 16.75 -0.5 (-2.9%)17.25
+0.13 (+0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.35%
Inst Owner ChangeN/A
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap6.48B
Analysts80.87
Price Target21.14 (22.55%)
Short Float %0.01%
Short Ratio0.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP44.62%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.58%
Min EPS beat(2)-0.36%
Max EPS beat(2)21.52%
EPS beat(4)3
Avg EPS beat(4)12.44%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)18.38%
EPS beat(12)11
Avg EPS beat(12)24.08%
EPS beat(16)15
Avg EPS beat(16)28.83%
Revenue beat(2)1
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-4.29%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-6.09%
Max Revenue beat(4)4.53%
Revenue beat(8)6
Avg Revenue beat(8)1.08%
Revenue beat(12)7
Avg Revenue beat(12)-0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.84%
PT rev (1m)-10.92%
PT rev (3m)-14.23%
EPS NQ rev (1m)-8.45%
EPS NQ rev (3m)-45.52%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-13.98%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 2.18 | ||
| P/S | 0.39 | ||
| P/FCF | 0.98 | ||
| P/OCF | 0.97 | ||
| P/B | 0.31 | ||
| P/tB | 0.33 | ||
| EV/EBITDA | 1.95 |
EPS(TTM)9.27
EY53.74%
EPS(NY)7.9
Fwd EY45.8%
FCF(TTM)17.62
FCFY102.17%
OCF(TTM)17.76
OCFY102.96%
SpS44.72
BVpS55.41
TBVpS51.82
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 20.52% | ||
| ROCE | 5.61% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.49% | ||
| ROICexgc | 6.02% | ||
| OM | 23.55% | ||
| PM (TTM) | 25.42% | ||
| GM | N/A | ||
| FCFM | 39.41% |
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 | 0.13 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 21.7% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 31.16 | ||
| Cash Conversion | 159.18% | ||
| Profit Quality | 155.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.45%
ROIC/WACC0.59
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)9.7%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-9.24%
EPS Next Y-14.78%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
EPS Next 5YN/A
Revenue 1Y (TTM)27.08%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%17.11%
Revenue Next Year11.53%
Revenue Next 2Y9.39%
Revenue Next 3Y7.01%
Revenue Next 5YN/A
EBIT growth 1Y24.98%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.24%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y16.07%
OCF growth 3Y24.87%
OCF growth 5Y26.64%