ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO)
US03939A1079
Taking everything into account, ACGLO scores 7 out of 10 in our fundamental rating. ACGLO was compared to 140 industry peers in the Insurance industry. While ACGLO has a great profitability rating, 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.
Each year in the past 5 years ACGLO has been profitable.
Each year in the past 5 years ACGLO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.70%, ACGLO belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
With an excellent Return On Equity value of 25.46%, ACGLO belongs to the best of the industry, outperforming 90.65% of the companies in the same industry.
The Return On Invested Capital of ACGLO (4.61%) is better than 80.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACGLO is in line with the industry average of 4.27%.
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
ACGLO has a better Profit Margin (35.09%) than 96.40% of its industry peers.
ACGLO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.27%, ACGLO belongs to the best of the industry, outperforming 87.05% of the companies in the same industry.
ACGLO's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACGLO is destroying value.
Compared to 1 year ago, ACGLO has more shares outstanding
The number of shares outstanding for ACGLO has been reduced compared to 5 years ago.
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 better Debt to FCF ratio (0.41) than 88.49% 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.
ACGLO has a better Debt to Equity ratio (0.12) than 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC7.75%
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.
Measured over the past years, ACGLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.84% on average per year.
Looking at the last year, ACGLO shows a very strong growth in Revenue. The Revenue has grown by 30.27%.
Measured over the past years, ACGLO shows a quite strong growth in Revenue. The Revenue has been growing by 19.58% on average per year.
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
Based on estimates for the next years, ACGLO will show a small growth in Earnings Per Share. The EPS will grow by 5.34% on average per year.
Based on estimates for the next years, ACGLO will show a quite strong growth in Revenue. The Revenue will grow by 12.74% on average per year.
EPS Next Y7.72%
EPS Next 2Y4.48%
EPS Next 3Y5.34%
EPS Next 5YN/A
Revenue Next Year20.61%
Revenue Next 2Y16.64%
Revenue Next 3Y12.74%
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.
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
ACGLO is valuated cheaply with a Price/Earnings ratio of 2.40.
Compared to the rest of the industry, the Price/Earnings ratio of ACGLO indicates a rather cheap valuation: ACGLO is cheaper than 86.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACGLO to the average of the S&P500 Index (28.96), we can say ACGLO is valued rather cheaply.
ACGLO is valuated cheaply with a Price/Forward Earnings ratio of 2.47.
86.33% of the companies in the same industry are more expensive than ACGLO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ACGLO to the average of the S&P500 Index (23.82), we can say ACGLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.4 | ||
| Fwd PE | 2.47 |
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 90.65% of the companies listed 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 91.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.28 | ||
| EV/EBITDA | 2.33 |
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)0.08
EPS Next 2Y4.48%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
ACGLO has a Yearly Dividend Yield of 5.97%, which is a nice return.
ACGLO's Dividend Yield is rather good when compared to the industry average which is at 4.25. ACGLO pays more dividend than 90.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ACGLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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 recently.
Dividend Growth(5Y)0.55%
Div Incr Years0
Div Non Decr Years1
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 2Y4.48%
EPS Next 3Y5.34%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (11/21/2024, 8:10:33 PM)
22.77
+0.21 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.4 | ||
| Fwd PE | 2.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.31
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 25.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.27% | ||
| PM (TTM) | 35.09% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.28%
EPS 3Y84.29%
EPS 5Y
EPS Q2Q%
EPS Next Y7.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.27%
Revenue growth 3Y16.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y