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ARCH CAPITAL GROUP LTD (ACGL) Stock Fundamental Analysis

USA - NASDAQ:ACGL - BMG0450A1053 - Common Stock

87.7 USD
+0.73 (+0.84%)
Last: 10/21/2025, 8:00:00 PM
87.7 USD
0 (0%)
After Hours: 10/21/2025, 8:00:00 PM
Fundamental Rating

5

Taking everything into account, ACGL scores 5 out of 10 in our fundamental rating. ACGL was compared to 147 industry peers in the Insurance industry. ACGL has an average financial health and profitability rating. ACGL has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year ACGL was profitable.
ACGL had a positive operating cash flow in the past year.
Each year in the past 5 years ACGL has been profitable.
ACGL had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

The Return On Assets of ACGL (4.69%) is better than 83.67% of its industry peers.
With a decent Return On Equity value of 16.03%, ACGL is doing good in the industry, outperforming 74.83% of the companies in the same industry.
The Return On Invested Capital of ACGL (3.80%) is better than 67.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACGL is in line with the industry average of 4.46%.
Industry RankSector Rank
ROA 4.69%
ROE 16.03%
ROIC 3.8%
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
ACGL Yearly ROA, ROE, ROICACGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

With an excellent Profit Margin value of 19.83%, ACGL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
ACGL's Profit Margin has improved in the last couple of years.
ACGL has a better Operating Margin (20.17%) than 77.55% of its industry peers.
In the last couple of years the Operating Margin of ACGL has declined.
Industry RankSector Rank
OM 20.17%
PM (TTM) 19.83%
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
ACGL Yearly Profit, Operating, Gross MarginsACGL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACGL is destroying value.
ACGL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ACGL has been reduced compared to 5 years ago.
Compared to 1 year ago, ACGL has an improved debt to assets ratio.
ACGL Yearly Shares OutstandingACGL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ACGL Yearly Total Debt VS Total AssetsACGL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

ACGL has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.45, ACGL belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that ACGL is not too dependend on debt financing.
ACGL's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. ACGL outperforms 74.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.46
WACC8.26%
ACGL Yearly LT Debt VS Equity VS FCFACGL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

5

3. Growth

3.1 Past

ACGL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.77%.
The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
ACGL shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.70%.
The Revenue has been growing by 19.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%

3.2 Future

ACGL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.81% yearly.
Based on estimates for the next years, ACGL will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
EPS Next Y-11.28%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ACGL Yearly Revenue VS EstimatesACGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
ACGL Yearly EPS VS EstimatesACGL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.48, the valuation of ACGL can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as ACGL.
Compared to an average S&P500 Price/Earnings ratio of 27.77, ACGL is valued rather cheaply.
The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of ACGL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACGL indicates a somewhat cheap valuation: ACGL is cheaper than 61.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ACGL is valued rather cheaply.
Industry RankSector Rank
PE 10.48
Fwd PE 9.34
ACGL Price Earnings VS Forward Price EarningsACGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

ACGL's Enterprise Value to EBITDA ratio is in line with the industry average.
ACGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 72.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.34
EV/EBITDA 8.53
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)0.39
EPS Next 2Y0.63%
EPS Next 3Y2.81%

5

5. Dividend

5.1 Amount

ACGL has a Yearly Dividend Yield of 5.78%, which is a nice return.
ACGL's Dividend Yield is rather good when compared to the industry average which is at 3.31. ACGL pays more dividend than 91.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ACGL pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.78%

5.2 History

On average, the dividend of ACGL grows each year by 118.11%, which is quite nice.
ACGL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years0
ACGL Yearly Dividends per shareACGL Yearly Dividends per shareYearly Dividends per share 2024 1 2 3 4

5.3 Sustainability

51.79% of the earnings are spent on dividend by ACGL. This is a bit on the high side, but may be sustainable.
ACGL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.79%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
ACGL Yearly Income VS Free CF VS DividendACGL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
ACGL Dividend Payout.ACGL Dividend Payout, showing the Payout Ratio.ACGL Dividend Payout.PayoutRetained Earnings

ARCH CAPITAL GROUP LTD

NASDAQ:ACGL (10/21/2025, 8:00:00 PM)

After market: 87.7 0 (0%)

87.7

+0.73 (+0.84%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners94.19%
Inst Owner Change0.03%
Ins Owners3.14%
Ins Owner Change0.4%
Market Cap32.73B
Revenue(TTM)18.63B
Net Income(TTM)3.69B
Analysts76.67
Price Target110.36 (25.84%)
Short Float %1.56%
Short Ratio2.59
Dividend
Industry RankSector Rank
Dividend Yield 5.78%
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.67%
Min EPS beat(2)9.27%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)11.13%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)16.8%
EPS beat(12)11
Avg EPS beat(12)24.14%
EPS beat(16)15
Avg EPS beat(16)27.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.12%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-2.23%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)1.66%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)1.68%
Revenue beat(16)8
Avg Revenue beat(16)-1.23%
PT rev (1m)0%
PT rev (3m)-3.53%
EPS NQ rev (1m)20.44%
EPS NQ rev (3m)24.36%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)3.15%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
Industry RankSector Rank
PE 10.48
Fwd PE 9.34
P/S 1.76
P/FCF 5.34
P/OCF 5.3
P/B 1.42
P/tB 1.51
EV/EBITDA 8.53
EPS(TTM)8.37
EY9.54%
EPS(NY)9.39
Fwd EY10.7%
FCF(TTM)16.42
FCFY18.72%
OCF(TTM)16.54
OCFY18.86%
SpS49.91
BVpS61.74
TBVpS58.2
PEG (NY)N/A
PEG (5Y)0.39
Graham Number107.83
Profitability
Industry RankSector Rank
ROA 4.69%
ROE 16.03%
ROCE 4.81%
ROIC 3.8%
ROICexc 3.85%
ROICexgc 5.18%
OM 20.17%
PM (TTM) 19.83%
GM N/A
FCFM 32.89%
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%
ROICexgc growth 3Y12.01%
ROICexgc 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 Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.45
Debt/EBITDA 0.68
Cap/Depr 16.2%
Cap/Sales 0.25%
Interest Coverage 29.35
Cash Conversion 152.76%
Profit Quality 165.86%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC8.26%
ROIC/WACC0.46
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)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
EPS Next Y-11.28%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
Revenue Next 5YN/A
EBIT growth 1Y-6.59%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.58%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y37.94%
OCF growth 3Y24.87%
OCF growth 5Y26.64%