ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO)
US03939A1079
ACGLO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. While ACGLO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ACGLO. ACGLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACGLO was profitable.
In the past year ACGLO had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.70%, ACGLO belongs to the top of the industry, outperforming 92.14% of the companies in the same industry.
ACGLO has a Return On Equity of 25.46%. This is amongst the best in the industry. ACGLO outperforms 87.14% of its industry peers.
ACGLO has a Return On Invested Capital of 4.61%. This is in the better half of the industry: ACGLO outperforms 78.57% of its industry peers.
ACGLO had an Average Return On Invested Capital over the past 3 years of 3.48%. This is in line with the industry average of 4.38%.
The last Return On Invested Capital (4.61%) for ACGLO is above the 3 year average (3.48%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 35.09%, ACGLO belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
ACGLO's Profit Margin has improved in the last couple of years.
ACGLO has a Operating Margin of 26.27%. This is amongst the best in the industry. ACGLO outperforms 87.86% of its industry peers.
In the last couple of years the Operating Margin of ACGLO has grown nicely.
| 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
ACGLO 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, ACGLO has more shares outstanding
Compared to 5 years ago, ACGLO has less shares outstanding
The debt/assets ratio for ACGLO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACGLO is 0.41, which is an excellent value as it means it would take ACGLO, only 0.41 years of fcf income to pay off all of its debts.
ACGLO has a Debt to FCF ratio of 0.41. This is amongst the best in the industry. ACGLO outperforms 87.14% of its industry peers.
ACGLO has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.12, ACGLO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC7.79%
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 17.28% over the past year.
ACGLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.84% yearly.
The Revenue has grown by 30.27% in the past year. This is a very strong growth!
The Revenue has been growing by 19.58% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 13.21% on average over the next years. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 2.28, the valuation of ACGLO can be described as very cheap.
ACGLO's Price/Earnings ratio is rather cheap when compared to the industry. ACGLO is cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. ACGLO is valued rather cheaply when compared to this.
ACGLO is valuated cheaply with a Price/Forward Earnings ratio of 2.36.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaper than 86.43% of the companies in the same industry.
ACGLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.28 | ||
| Fwd PE | 2.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACGLO is valued cheaper than 91.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLO is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.21 | ||
| EV/EBITDA | 2.24 |
4.3 Compensation for Growth
ACGLO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ACGLO may justify a higher PE ratio.
PEG (NY)0.31
PEG (5Y)0.07
EPS Next 2Y4.25%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
ACGLO has a Yearly Dividend Yield of 6.29%, which is a nice return.
Compared to an average industry Dividend Yield of 4.35, ACGLO pays a better dividend. On top of this ACGLO pays more dividend than 90.71% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
5.2 History
The dividend of ACGLO has a limited annual growth rate of 0.55%.
ACGLO has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ACGLO decreased in the last 3 years.
Dividend Growth(5Y)0.55%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
0.71% of the earnings are spent on dividend by ACGLO. This is a low number and sustainable payout ratio.
The dividend of ACGLO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0.71%
EPS Next 2Y4.25%
EPS Next 3Y5.38%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (12/20/2024, 8:00:00 PM)
Premarket: 21.2 -0.45 (-2.08%)21.65
+0.18 (+0.84%)
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 Cap8.15B
Analysts80.87
Price Target28.21 (30.3%)
Short Float %0%
Short Ratio0.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
Dividend Growth(5Y)0.55%
DP0.71%
Div Incr Years0
Div Non Decr Years2
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)4.25%
PT rev (3m)12.96%
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 | 2.28 | ||
| Fwd PE | 2.36 | ||
| P/S | 0.5 | ||
| P/FCF | 1.21 | ||
| P/OCF | 1.2 | ||
| P/B | 0.37 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | 2.24 |
EPS(TTM)9.5
EY43.88%
EPS(NY)9.18
Fwd EY42.42%
FCF(TTM)17.84
FCFY82.4%
OCF(TTM)17.98
OCFY83.05%
SpS42.95
BVpS59.2
TBVpS55.25
PEG (NY)0.31
PEG (5Y)0.07
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
WACC7.79%
ROIC/WACC0.59
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%