ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO) Stock Fundamental Analysis
NASDAQ:ACGLO - Nasdaq - US03939A1079 - Currency: USD
Taking everything into account, ACGLO scores 6 out of 10 in our fundamental rating. ACGLO was compared to 145 industry peers in the Insurance industry. While ACGLO has a great profitability rating, there are some minor concerns on its financial health. ACGLO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ACGLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACGLO was profitable.
ACGLO had a positive operating cash flow in the past year.
ACGLO had positive earnings in each of the past 5 years.
In the past 5 years ACGLO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.96%, ACGLO belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
With a decent Return On Equity value of 17.29%, ACGLO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ACGLO's Return On Invested Capital of 3.96% is fine compared to the rest of the industry. ACGLO outperforms 76.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACGLO is in line with the industry average of 4.07%.
The 3 year average ROIC (3.89%) for ACGLO 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
Looking at the Profit Margin, with a value of 21.09%, ACGLO belongs to the top of the industry, outperforming 91.03% of the companies in the same industry.
In the last couple of years the Profit Margin of ACGLO has grown nicely.
ACGLO has a Operating Margin of 21.15%. This is amongst the best in the industry. ACGLO outperforms 81.38% of its industry peers.
ACGLO's Operating Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACGLO is destroying value.
The number of shares outstanding for ACGLO has been increased compared to 1 year ago.
The number of shares outstanding for ACGLO has been reduced compared to 5 years ago.
ACGLO has a better debt/assets ratio than last year.
2.2 Solvency
ACGLO has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
The Debt to FCF ratio of ACGLO (0.42) is better than 81.38% of its industry peers.
ACGLO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
ACGLO has a Debt to Equity ratio of 0.13. This is in the better half of the industry: ACGLO outperforms 77.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.52
WACC7.61%
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 ACGLO have decreased by -8.83% in the last year.
The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
The Revenue has grown by 26.93% in the past year. This is a very strong growth!
Measured over the past years, ACGLO shows a quite strong growth in Revenue. The Revenue has been growing by 19.89% on average per year.
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
Based on estimates for the next years, ACGLO will show a small growth in Earnings Per Share. The EPS will grow by 2.96% on average per year.
ACGLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.71% yearly.
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.
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
A Price/Earnings ratio of 2.47 indicates a rather cheap valuation of ACGLO.
ACGLO's Price/Earnings ratio is rather cheap when compared to the industry. ACGLO is cheaper than 84.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ACGLO is valued rather cheaply when compared to this.
ACGLO is valuated cheaply with a Price/Forward Earnings ratio of 2.17.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaper than 86.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACGLO to the average of the S&P500 Index (21.76), we can say ACGLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.47 | ||
| Fwd PE | 2.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGLO indicates a rather cheap valuation: ACGLO is cheaper than 89.66% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLO is valued cheaper than 91.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.18 | ||
| EV/EBITDA | 2.33 |
4.3 Compensation for Growth
The decent profitability rating of ACGLO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y1.22%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.58%, ACGLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.64, ACGLO pays a better dividend. On top of this ACGLO pays more dividend than 86.90% of the companies listed in the same industry.
ACGLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
The dividend of ACGLO is nicely growing with an annual growth rate of 118.11%!
ACGLO has been paying a dividend for over 5 years, so it has already some track record.
ACGLO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
51.29% of the earnings are spent on dividend by ACGLO. This is a bit on the high side, but may be sustainable.
ACGLO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.29%
EPS Next 2Y1.22%
EPS Next 3Y2.96%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (7/11/2025, 8:00:00 PM)
20.62
-0.11 (-0.53%)
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 Cap7.73B
Analysts79.09
Price Target25.48 (23.57%)
Short Float %0.02%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.29%
Div Incr Years0
Div Non Decr Years4
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)1.83%
PT rev (3m)1.43%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-2.07%
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)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.47 | ||
| Fwd PE | 2.17 | ||
| P/S | 0.44 | ||
| P/FCF | 1.18 | ||
| P/OCF | 1.18 | ||
| P/B | 0.36 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 2.33 |
EPS(TTM)8.36
EY40.54%
EPS(NY)9.5
Fwd EY46.06%
FCF(TTM)17.4
FCFY84.4%
OCF(TTM)17.52
OCFY84.98%
SpS47.13
BVpS57.49
TBVpS54
PEG (NY)N/A
PEG (5Y)0.09
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
WACC7.61%
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)-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%