91.72 USD
-0.67 (-0.73%)
91.72 USD
0 (0%)
ACGL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. While ACGL has a great profitability rating, there are some minor concerns on its financial health. ACGL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ACGL had positive earnings in the past year.
In the past year ACGL had a positive cash flow from operations.
In the past 5 years ACGL has always been profitable.
Each year in the past 5 years ACGL had a positive operating cash flow.
1.2 Ratios
ACGL's Return On Assets of 5.12% is amongst the best of the industry. ACGL outperforms 82.43% of its industry peers.
The Return On Equity of ACGL (17.10%) is better than 77.03% of its industry peers.
ACGL's Return On Invested Capital of 4.08% is fine compared to the rest of the industry. ACGL outperforms 66.89% 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 4.57%.
The 3 year average ROIC (3.89%) for ACGL is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 17.1% | ||
| ROIC | 4.08% |
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
1.3 Margins
Looking at the Profit Margin, with a value of 21.42%, ACGL belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
ACGL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 21.52%, ACGL is doing good in the industry, outperforming 77.03% of the companies in the same industry.
In the last couple of years the Operating Margin of ACGL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.52% | ||
| PM (TTM) | 21.42% | ||
| 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for ACGL has been reduced compared to a year ago.
2.2 Solvency
ACGL has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
ACGL has a Debt to FCF ratio of 0.43. This is amongst the best in the industry. ACGL outperforms 83.78% of its industry peers.
ACGL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, ACGL is doing good in the industry, outperforming 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.49
WACC8.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ACGL have decreased by -3.68% in the last year.
Measured over the past years, ACGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.96% on average per year.
ACGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.15%.
Measured over the past years, ACGL shows a quite strong growth in Revenue. The Revenue has been growing by 19.89% on average per year.
EPS 1Y (TTM)-3.68%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%39.2%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%-2.05%
3.2 Future
ACGL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.25% yearly.
ACGL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y0.68%
EPS Next 2Y1.02%
EPS Next 3Y3.25%
EPS Next 5YN/A
Revenue Next Year8.14%
Revenue Next 2Y5.32%
Revenue Next 3Y4.95%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.02 indicates a reasonable valuation of ACGL.
Based on the Price/Earnings ratio, ACGL is valued a bit cheaper than the industry average as 60.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ACGL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.70, the valuation of ACGL can be described as reasonable.
ACGL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, ACGL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
ACGL's Enterprise Value to EBITDA ratio is in line with the industry average.
69.59% of the companies in the same industry are more expensive than ACGL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.28 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACGL does not grow enough to justify the current Price/Earnings ratio.
ACGL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)14.8
PEG (5Y)0.37
EPS Next 2Y1.02%
EPS Next 3Y3.25%
5. Dividend
5.1 Amount
No dividends for ACGL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.72
-0.67 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-1.81%
Ins Owners3.23%
Ins Owner Change-0.38%
Market Cap33.26B
Revenue(TTM)18.93B
Net Income(TTM)4.06B
Analysts75.38
Price Target109.42 (19.3%)
Short Float %1.62%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP47.16%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.88%
Min EPS beat(2)9.27%
Max EPS beat(2)20.5%
EPS beat(4)4
Avg EPS beat(4)16.34%
Min EPS beat(4)9.27%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)14.25%
EPS beat(12)11
Avg EPS beat(12)20.65%
EPS beat(16)15
Avg EPS beat(16)22.34%
Revenue beat(2)0
Avg Revenue beat(2)-7.41%
Min Revenue beat(2)-12.59%
Max Revenue beat(2)-2.23%
Revenue beat(4)0
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-12.59%
Max Revenue beat(4)-2.23%
Revenue beat(8)3
Avg Revenue beat(8)-3.09%
Revenue beat(12)7
Avg Revenue beat(12)0.7%
Revenue beat(16)8
Avg Revenue beat(16)-1.26%
PT rev (1m)-1.05%
PT rev (3m)-0.85%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)2.07%
EPS NY rev (3m)13.14%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.7 | ||
| P/S | 1.76 | ||
| P/FCF | 5.28 | ||
| P/OCF | 5.25 | ||
| P/B | 1.4 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)9.15
EY9.98%
EPS(NY)9.46
Fwd EY10.31%
FCF(TTM)17.36
FCFY18.93%
OCF(TTM)17.49
OCFY19.06%
SpS52.21
BVpS65.41
TBVpS61.91
PEG (NY)14.8
PEG (5Y)0.37
Graham Number116.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 17.1% | ||
| ROCE | 5.17% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 5.51% | ||
| OM | 21.52% | ||
| PM (TTM) | 21.42% | ||
| GM | N/A | ||
| FCFM | 33.25% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 18.78% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 31.83 | ||
| Cash Conversion | 146.82% | ||
| Profit Quality | 155.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.39%
ROIC/WACC0.49
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)-3.68%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%39.2%
EPS Next Y0.68%
EPS Next 2Y1.02%
EPS Next 3Y3.25%
EPS Next 5YN/A
Revenue 1Y (TTM)17.15%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%-2.05%
Revenue Next Year8.14%
Revenue Next 2Y5.32%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-4.05%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.52%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y25.18%
OCF growth 3Y24.87%
OCF growth 5Y26.64%
ARCH CAPITAL GROUP LTD / ACGL FAQ
What is the fundamental rating for ACGL stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACGL.
What is the valuation status for ACGL stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCH CAPITAL GROUP LTD (ACGL). This can be considered as Fairly Valued.
How profitable is ARCH CAPITAL GROUP LTD (ACGL) stock?
ARCH CAPITAL GROUP LTD (ACGL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ARCH CAPITAL GROUP LTD (ACGL) stock?
The Price/Earnings (PE) ratio for ARCH CAPITAL GROUP LTD (ACGL) is 10.02 and the Price/Book (PB) ratio is 1.4.
Is the dividend of ARCH CAPITAL GROUP LTD sustainable?
The dividend rating of ARCH CAPITAL GROUP LTD (ACGL) is 0 / 10 and the dividend payout ratio is 47.16%.