ARCH CAPITAL GROUP LTD (ACGL) Fundamental Analysis & Valuation

NASDAQ:ACGL • BMG0450A1053

Current stock price

97.59 USD
+0.49 (+0.5%)
At close:
97.629 USD
+0.04 (+0.04%)
After Hours:

This ACGL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ACGL Profitability Analysis

1.1 Basic Checks

  • In the past year ACGL was profitable.
  • In the past year ACGL had a positive cash flow from operations.
  • Each year in the past 5 years ACGL has been profitable.
  • Each year in the past 5 years ACGL had a positive operating cash flow.
ACGL Yearly Net Income VS EBIT VS OCF VS FCFACGL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.50%, ACGL is in the better half of the industry, outperforming 79.73% of the companies in the same industry.
  • ACGL has a Return On Equity of 18.01%. This is in the better half of the industry: ACGL outperforms 75.00% of its industry peers.
  • The Return On Invested Capital of ACGL (5.09%) is better than 72.30% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ACGL is below the industry average of 9.50%.
  • The last Return On Invested Capital (5.09%) for ACGL is above the 3 year average (4.96%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.5%
ROE 18.01%
ROIC 5.09%
ROA(3y)6.33%
ROA(5y)5.33%
ROE(3y)20.84%
ROE(5y)17.82%
ROIC(3y)4.96%
ROIC(5y)4.35%
ACGL Yearly ROA, ROE, ROICACGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.58%, ACGL belongs to the top of the industry, outperforming 87.16% of the companies in the same industry.
  • ACGL's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 23.57%, ACGL belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ACGL has grown nicely.
Industry RankSector Rank
OM 23.57%
PM (TTM) 22.58%
GM N/A
OM growth 3Y9.34%
OM growth 5Y3.6%
PM growth 3Y15.51%
PM growth 5Y6.59%
GM growth 3YN/A
GM growth 5YN/A
ACGL Yearly Profit, Operating, Gross MarginsACGL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. ACGL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACGL is destroying value.
  • Compared to 1 year ago, ACGL has less shares outstanding
  • Compared to 5 years ago, ACGL has less shares outstanding
  • The debt/assets ratio for ACGL has been reduced compared to a year ago.
ACGL Yearly Shares OutstandingACGL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ACGL Yearly Total Debt VS Total AssetsACGL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • The Debt to FCF ratio of ACGL is 0.45, which is an excellent value as it means it would take ACGL, only 0.45 years of fcf income to pay off all of its debts.
  • ACGL has a better Debt to FCF ratio (0.45) than 82.43% of its industry peers.
  • ACGL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • ACGL's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. ACGL outperforms 76.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.59
WACC8.61%
ACGL Yearly LT Debt VS Equity VS FCFACGL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
ACGL Yearly Current Assets VS Current LiabilitesACGL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ACGL Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.47% over the past year.
  • The Earnings Per Share has been growing by 48.87% on average over the past years. This is a very strong growth
  • The Revenue has grown by 14.90% in the past year. This is quite good.
  • ACGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.36% yearly.
EPS 1Y (TTM)6.47%
EPS 3Y26.64%
EPS 5Y48.87%
EPS Q2Q%31.86%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y25.34%
Revenue growth 5Y18.36%
Sales Q2Q%-4.45%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.73% on average over the next years.
  • Based on estimates for the next years, ACGL will show a small growth in Revenue. The Revenue will grow by 3.36% on average per year.
EPS Next Y-3.05%
EPS Next 2Y2.24%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue Next Year-0.29%
Revenue Next 2Y1.69%
Revenue Next 3Y3.36%
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.
ACGL Yearly Revenue VS EstimatesACGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
ACGL Yearly EPS VS EstimatesACGL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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5

4. ACGL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.89 indicates a reasonable valuation of ACGL.
  • Compared to the rest of the industry, the Price/Earnings ratio of ACGL is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.87. ACGL is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 10.20, which indicates a very decent valuation of ACGL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ACGL is on the same level as its industry peers.
  • ACGL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.51.
Industry RankSector Rank
PE 9.89
Fwd PE 10.2
ACGL Price Earnings VS Forward Price EarningsACGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGL indicates a somewhat cheap valuation: ACGL is cheaper than 62.84% of the companies listed in the same industry.
  • 62.84% of the companies in the same industry are more expensive than ACGL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.67
EV/EBITDA 7.66
ACGL Per share dataACGL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The decent profitability rating of ACGL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y2.24%
EPS Next 3Y3.73%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ACGL Dividend Analysis

5.1 Amount

  • ACGL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ACGL Fundamentals: All Metrics, Ratios and Statistics

ARCH CAPITAL GROUP LTD

NASDAQ:ACGL (4/17/2026, 8:00:00 PM)

After market: 97.629 +0.04 (+0.04%)

97.59

+0.49 (+0.5%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-09
Earnings (Next)04-28
Inst Owners94.6%
Inst Owner Change0.02%
Ins Owners2.61%
Ins Owner Change3%
Market Cap34.77B
Revenue(TTM)19.31B
Net Income(TTM)4.36B
Analysts74.81
Price Target111.24 (13.99%)
Short Float %1.64%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly Dividend0.13
Dividend Growth(5Y)4.53%
DP1.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.61%
Min EPS beat(2)12.73%
Max EPS beat(2)20.5%
EPS beat(4)4
Avg EPS beat(4)14.14%
Min EPS beat(4)9.27%
Max EPS beat(4)20.5%
EPS beat(8)7
Avg EPS beat(8)13.29%
EPS beat(12)11
Avg EPS beat(12)16.97%
EPS beat(16)15
Avg EPS beat(16)21.6%
Revenue beat(2)0
Avg Revenue beat(2)-10.95%
Min Revenue beat(2)-12.59%
Max Revenue beat(2)-9.32%
Revenue beat(4)0
Avg Revenue beat(4)-7.54%
Min Revenue beat(4)-12.59%
Max Revenue beat(4)-2.23%
Revenue beat(8)2
Avg Revenue beat(8)-4.29%
Revenue beat(12)6
Avg Revenue beat(12)-1.79%
Revenue beat(16)7
Avg Revenue beat(16)-2.29%
PT rev (1m)0%
PT rev (3m)1.92%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)2.09%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.92%
Valuation
Industry RankSector Rank
PE 9.89
Fwd PE 10.2
P/S 1.8
P/FCF 5.67
P/OCF 5.63
P/B 1.44
P/tB 1.51
EV/EBITDA 7.66
EPS(TTM)9.87
EY10.11%
EPS(NY)9.57
Fwd EY9.81%
FCF(TTM)17.2
FCFY17.63%
OCF(TTM)17.32
OCFY17.75%
SpS54.19
BVpS67.94
TBVpS64.51
PEG (NY)N/A
PEG (5Y)0.2
Graham Number122.835 (25.87%)
Profitability
Industry RankSector Rank
ROA 5.5%
ROE 18.01%
ROCE 5.77%
ROIC 5.09%
ROICexc 5.16%
ROICexgc 6.87%
OM 23.57%
PM (TTM) 22.58%
GM N/A
FCFM 31.74%
ROA(3y)6.33%
ROA(5y)5.33%
ROE(3y)20.84%
ROE(5y)17.82%
ROIC(3y)4.96%
ROIC(5y)4.35%
ROICexc(3y)5.03%
ROICexc(5y)4.42%
ROICexgc(3y)6.71%
ROICexgc(5y)5.88%
ROCE(3y)5.62%
ROCE(5y)4.93%
ROICexgc growth 3Y15.73%
ROICexgc growth 5Y9.74%
ROICexc growth 3Y15.77%
ROICexc growth 5Y8.42%
OM growth 3Y9.34%
OM growth 5Y3.6%
PM growth 3Y15.51%
PM growth 5Y6.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.45
Debt/EBITDA 0.58
Cap/Depr 22.8%
Cap/Sales 0.23%
Interest Coverage 35.83
Cash Conversion 130.1%
Profit Quality 140.58%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.61%
ROIC/WACC0.59
Cap/Depr(3y)33.08%
Cap/Depr(5y)39.56%
Cap/Sales(3y)0.31%
Cap/Sales(5y)0.38%
Profit Quality(3y)141.66%
Profit Quality(5y)169.76%
High Growth Momentum
Growth
EPS 1Y (TTM)6.47%
EPS 3Y26.64%
EPS 5Y48.87%
EPS Q2Q%31.86%
EPS Next Y-3.05%
EPS Next 2Y2.24%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y25.34%
Revenue growth 5Y18.36%
Sales Q2Q%-4.45%
Revenue Next Year-0.29%
Revenue Next 2Y1.69%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y15.01%
EBIT growth 3Y37.05%
EBIT growth 5Y22.63%
EBIT Next Year26.29%
EBIT Next 3Y12.91%
EBIT Next 5YN/A
FCF growth 1Y-7.46%
FCF growth 3Y17.65%
FCF growth 5Y16.57%
OCF growth 1Y-7.51%
OCF growth 3Y17.39%
OCF growth 5Y16.42%

ARCH CAPITAL GROUP LTD / ACGL Fundamental Analysis FAQ

What is the fundamental rating for ACGL stock?

ChartMill assigns a fundamental rating of 5 / 10 to ACGL.


Can you provide the valuation status for ARCH CAPITAL GROUP LTD?

ChartMill assigns a valuation rating of 5 / 10 to ARCH CAPITAL GROUP LTD (ACGL). This can be considered as Fairly Valued.


Can you provide the profitability details for ARCH CAPITAL GROUP LTD?

ARCH CAPITAL GROUP LTD (ACGL) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for ACGL stock?

The Price/Earnings (PE) ratio for ARCH CAPITAL GROUP LTD (ACGL) is 9.89 and the Price/Book (PB) ratio is 1.44.


Can you provide the dividend sustainability for ACGL stock?

The dividend rating of ARCH CAPITAL GROUP LTD (ACGL) is 0 / 10 and the dividend payout ratio is 1.08%.