ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO) Stock Fundamental Analysis
NASDAQ:ACGLO - Nasdaq - US03939A1079 - Currency: USD
Overall ACGLO gets a fundamental rating of 6 out of 10. We evaluated ACGLO against 144 industry peers in the Insurance industry. ACGLO has an excellent profitability rating, but 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.
1. Profitability
1.1 Basic Checks
In the past year ACGLO was profitable.
ACGLO had a positive operating cash flow in the past year.
Each year in the past 5 years ACGLO has been profitable.
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 6.02%, ACGLO belongs to the top of the industry, outperforming 86.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.52%, ACGLO belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
ACGLO has a Return On Invested Capital of 4.36%. This is in the better half of the industry: ACGLO outperforms 77.46% of its industry peers.
ACGLO had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 4.55%.
The 3 year average ROIC (3.87%) for ACGLO is below the current ROIC(4.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 20.52% | ||
| ROIC | 4.36% |
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.87%
ROIC(5y)3.57%
1.3 Margins
The Profit Margin of ACGLO (25.42%) is better than 93.66% of its industry peers.
ACGLO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.23%, ACGLO belongs to the best of the industry, outperforming 83.80% of the companies in the same industry.
In the last couple of years the Operating Margin of ACGLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.23% | ||
| PM (TTM) | 25.42% | ||
| GM | N/A |
OM growth 3Y4.38%
OM growth 5Y-3.09%
PM growth 3Y2.45%
PM growth 5Y1.58%
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.
ACGLO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACGLO has less shares outstanding
ACGLO has a better debt/assets ratio than last year.
2.2 Solvency
ACGLO 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.
ACGLO's Debt to FCF ratio of 0.41 is amongst the best of the industry. ACGLO outperforms 86.62% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ACGLO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.13, ACGLO is doing good in the industry, outperforming 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC7.71%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.70%, which is quite good.
ACGLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.96% yearly.
ACGLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.08%.
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)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
Based on estimates for the next years, ACGLO will show a small growth in Earnings Per Share. The EPS will grow by 4.34% on average per year.
ACGLO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.50% yearly.
EPS Next Y-13.69%
EPS Next 2Y2.67%
EPS Next 3Y4.34%
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y9.24%
Revenue Next 3Y8.5%
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.
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 2.33, 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 84.51% of the companies in the same industry.
ACGLO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 2.70 indicates a rather cheap valuation of ACGLO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACGLO indicates a rather cheap valuation: ACGLO is cheaper than 85.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. ACGLO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.7 |
4.2 Price Multiples
ACGLO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACGLO is cheaper than 91.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACGLO indicates a rather cheap valuation: ACGLO is cheaper than 89.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.23 | ||
| EV/EBITDA | 2.39 |
4.3 Compensation for Growth
ACGLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y2.67%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
ACGLO has a Yearly Dividend Yield of 6.30%, which is a nice return.
ACGLO's Dividend Yield is rather good when compared to the industry average which is at 3.17. ACGLO pays more dividend than 92.25% of the companies in the same industry.
ACGLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
On average, the dividend of ACGLO grows each year by 118.11%, which is quite nice.
ACGLO has been paying a dividend for over 5 years, so it has already some track record.
ACGLO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ACGLO pays out 44.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACGLO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.62%
EPS Next 2Y2.67%
EPS Next 3Y4.34%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (2/21/2025, 4:30:00 PM)
21.64
-0.05 (-0.25%)
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 Cap8.15B
Analysts80.87
Price Target27.83 (28.6%)
Short Float %0.01%
Short Ratio0.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP44.62%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)-5.29%
PT rev (3m)-4.92%
EPS NQ rev (1m)-35.37%
EPS NQ rev (3m)-29.38%
EPS NY rev (1m)-12.88%
EPS NY rev (3m)-13.27%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)6.58%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.7 | ||
| P/S | 0.48 | ||
| P/FCF | 1.23 | ||
| P/OCF | 1.22 | ||
| P/B | 0.39 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 2.39 |
EPS(TTM)9.27
EY42.84%
EPS(NY)8
Fwd EY36.97%
FCF(TTM)17.59
FCFY81.3%
OCF(TTM)17.73
OCFY81.92%
SpS44.64
BVpS55.31
TBVpS51.72
PEG (NY)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 20.52% | ||
| ROCE | 5.52% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 6.02% | ||
| OM | 23.23% | ||
| 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)3.87%
ROIC(5y)3.57%
ROICexc(3y)3.94%
ROICexc(5y)3.64%
ROICexgc(3y)5.28%
ROICexgc(5y)4.81%
ROCE(3y)4.9%
ROCE(5y)4.52%
ROICexcg growth 3Y12.23%
ROICexcg growth 5Y3.31%
ROICexc growth 3Y10.88%
ROICexc growth 5Y2.3%
OM growth 3Y4.38%
OM growth 5Y-3.09%
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 | 0.66 | ||
| Cap/Depr | 21.7% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 30.73 | ||
| Cash Conversion | 161.26% | ||
| Profit Quality | 155.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.71%
ROIC/WACC0.57
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-13.69%
EPS Next 2Y2.67%
EPS Next 3Y4.34%
EPS Next 5YN/A
Revenue 1Y (TTM)27.08%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%17.11%
Revenue Next Year11.54%
Revenue Next 2Y9.24%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
EBIT growth 1Y23.28%
EBIT growth 3Y29.23%
EBIT growth 5Y16.18%
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%