ARCH CAPITAL GROUP LTD (ACGL) Fundamental Analysis & Valuation

NASDAQ:ACGL • BMG0450A1053

Current stock price

98.85 USD
+1.36 (+1.4%)
At close:
99.8862 USD
+1.04 (+1.05%)
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.
  • ACGL had a positive operating cash flow in the past year.
  • Each year in the past 5 years ACGL has been profitable.
  • In the past 5 years ACGL always reported a positive cash flow from operatings.
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

  • ACGL has a Return On Assets of 5.50%. This is in the better half of the industry: ACGL outperforms 79.59% of its industry peers.
  • With a decent Return On Equity value of 18.01%, ACGL is doing good in the industry, outperforming 74.83% of the companies in the same industry.
  • ACGL's Return On Invested Capital of 5.09% is fine compared to the rest of the industry. ACGL outperforms 71.43% of its industry peers.
  • ACGL had an Average Return On Invested Capital over the past 3 years of 4.96%. This is below the industry average of 9.51%.
  • The 3 year average ROIC (4.96%) for ACGL is below the current ROIC(5.09%), indicating increased profibility in the last year.
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

  • The Profit Margin of ACGL (22.58%) is better than 87.07% of its industry peers.
  • In the last couple of years the Profit Margin of ACGL has grown nicely.
  • ACGL has a Operating Margin of 23.57%. This is amongst the best in the industry. ACGL outperforms 80.95% of its industry peers.
  • 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

  • ACGL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for ACGL has been reduced compared to 1 year ago.
  • 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 82.31% of its industry peers.
  • A Debt/Equity ratio of 0.11 indicates that ACGL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.11, ACGL is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.59
WACC8.56%
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
  • Looking at the last year, ACGL shows a quite strong growth in Revenue. The Revenue has grown by 14.90% in the last year.
  • Measured over the past years, ACGL shows a quite strong growth in Revenue. The Revenue has been growing by 18.36% on average per year.
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

  • Based on estimates for the next years, ACGL will show a small growth in Earnings Per Share. The EPS will grow by 3.73% on average per year.
  • Based on estimates for the next years, ACGL will show a small growth in Revenue. The Revenue will grow by 3.34% on average per year.
EPS Next Y-3.05%
EPS Next 2Y2.24%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y2.15%
Revenue Next 3Y3.34%
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 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

  • With a Price/Earnings ratio of 10.02, 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 27.71, ACGL is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.33, 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 38.09.
Industry RankSector Rank
PE 10.02
Fwd PE 10.33
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

  • 62.59% of the companies in the same industry are more expensive than ACGL, based on the Enterprise Value to EBITDA ratio.
  • ACGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 62.59% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.75
EV/EBITDA 7.69
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%

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Find the best dividend stocksShow peers with best dividend

ACGL Fundamentals: All Metrics, Ratios and Statistics

ARCH CAPITAL GROUP LTD

NASDAQ:ACGL (4/21/2026, 8:24:40 PM)

After market: 99.8862 +1.04 (+1.05%)

98.85

+1.36 (+1.4%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-09
Earnings (Next)04-28
Inst Owners94.6%
Inst Owner Change0.04%
Ins Owners2.61%
Ins Owner Change3%
Market Cap35.22B
Revenue(TTM)19.31B
Net Income(TTM)4.36B
Analysts74.81
Price Target111.75 (13.05%)
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)0.46%
PT rev (3m)1.96%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)-1.28%
Valuation
Industry RankSector Rank
PE 10.02
Fwd PE 10.33
P/S 1.82
P/FCF 5.75
P/OCF 5.71
P/B 1.45
P/tB 1.53
EV/EBITDA 7.69
EPS(TTM)9.87
EY9.98%
EPS(NY)9.57
Fwd EY9.68%
FCF(TTM)17.2
FCFY17.4%
OCF(TTM)17.32
OCFY17.53%
SpS54.19
BVpS67.94
TBVpS64.51
PEG (NY)N/A
PEG (5Y)0.2
Graham Number122.835 (24.26%)
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
WACC8.56%
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 Year0.98%
Revenue Next 2Y2.15%
Revenue Next 3Y3.34%
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 10.02 and the Price/Book (PB) ratio is 1.45.


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%.