ARCH CAPITAL GROUP LTD (ACGL) Fundamental Analysis & Valuation

NASDAQ:ACGL • BMG0450A1053

Current stock price

92.87 USD
-1.53 (-1.62%)
At close:
92.5 USD
-0.37 (-0.4%)
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.
  • In the past 5 years ACGL has always 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 amongst the best in the industry. ACGL outperforms 81.76% of its industry peers.
  • Looking at the Return On Equity, with a value of 18.01%, ACGL is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
  • ACGL has a better Return On Invested Capital (5.09%) than 74.32% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ACGL is significantly below the industry average of 15.41%.
  • 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

  • ACGL has a Profit Margin of 22.58%. This is amongst the best in the industry. ACGL outperforms 90.54% of its industry peers.
  • ACGL's Profit Margin has improved in the last couple of years.
  • ACGL has a better Operating Margin (23.57%) than 79.05% of its industry peers.
  • ACGL's Operating Margin has improved in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, ACGL has less shares outstanding
  • ACGL has less shares outstanding than it did 5 years ago.
  • ACGL has a better debt/assets ratio than last year.
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.
  • Looking at the Debt to FCF ratio, with a value of 0.45, ACGL belongs to the top of the industry, outperforming 82.43% of the companies in the same industry.
  • ACGL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of ACGL (0.11) is better than 77.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.6
WACC8.48%
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

More info and screens

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

5

3. ACGL Growth Analysis

3.1 Past

  • ACGL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.47%.
  • 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.
  • 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

  • The Earnings Per Share is expected to grow by 3.94% on average over the next years.
  • ACGL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.36% yearly.
EPS Next Y-2.96%
EPS Next 2Y2.29%
EPS Next 3Y3.94%
EPS Next 5YN/A
Revenue Next Year-0.29%
Revenue Next 2Y1.69%
Revenue Next 3Y3.36%
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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. ACGL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.41 indicates a reasonable valuation of ACGL.
  • Based on the Price/Earnings ratio, ACGL is valued a bit cheaper than 60.81% of the companies in the same industry.
  • ACGL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.79.
  • Based on the Price/Forward Earnings ratio of 9.70, the valuation of ACGL can be described as reasonable.
  • ACGL's Price/Forward Earnings ratio is in line with the industry average.
  • ACGL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.80.
Industry RankSector Rank
PE 9.41
Fwd PE 9.7
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

  • Based on the Enterprise Value to EBITDA ratio, ACGL is valued a bit cheaper than the industry average as 60.14% of the companies are valued more expensively.
  • 63.51% 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 5.39
EV/EBITDA 7.45
ACGL Per share dataACGL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • ACGL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y2.29%
EPS Next 3Y3.94%

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 (3/18/2026, 8:00:00 PM)

After market: 92.5 -0.37 (-0.4%)

92.87

-1.53 (-1.62%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-09
Earnings (Next)04-27
Inst Owners93.96%
Inst Owner Change-3.06%
Ins Owners3.34%
Ins Owner Change3%
Market Cap33.04B
Revenue(TTM)19.31B
Net Income(TTM)4.36B
Analysts74.81
Price Target111.24 (19.78%)
Short Float %1.59%
Short Ratio2.71
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)1.5%
PT rev (3m)1.66%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)2%
EPS NY rev (1m)0.2%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-3.12%
Valuation
Industry RankSector Rank
PE 9.41
Fwd PE 9.7
P/S 1.71
P/FCF 5.39
P/OCF 5.35
P/B 1.37
P/tB 1.44
EV/EBITDA 7.45
EPS(TTM)9.87
EY10.63%
EPS(NY)9.58
Fwd EY10.31%
FCF(TTM)17.22
FCFY18.55%
OCF(TTM)17.35
OCFY18.68%
SpS54.26
BVpS68.03
TBVpS64.6
PEG (NY)N/A
PEG (5Y)0.19
Graham Number122.92
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
WACC8.48%
ROIC/WACC0.6
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-2.96%
EPS Next 2Y2.29%
EPS Next 3Y3.94%
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 Year30.69%
EBIT Next 3Y15.04%
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 6 / 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.


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

The Price/Earnings (PE) ratio for ARCH CAPITAL GROUP LTD (ACGL) is 9.41 and the Price/Book (PB) ratio is 1.37.


What is the expected EPS growth for ARCH CAPITAL GROUP LTD (ACGL) stock?

The Earnings per Share (EPS) of ARCH CAPITAL GROUP LTD (ACGL) is expected to decline by -2.96% in the next year.