ARCH CAPITAL GROUP LTD (ACGL) Fundamental Analysis & Valuation

NASDAQ:ACGL • BMG0450A1053

97.21 USD
+0.14 (+0.14%)
At close: Mar 6, 2026
97.21 USD
0 (0%)
After Hours: 3/6/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Overall ACGL gets a fundamental rating of 5 out of 10. We evaluated ACGL against 149 industry peers in the Insurance industry. ACGL scores excellent on profitability, but there are some minor concerns on its financial health. ACGL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. ACGL Profitability Analysis

1.1 Basic Checks

  • ACGL had positive earnings in the past year.
  • ACGL had a positive operating cash flow in the past year.
  • ACGL had positive earnings in each of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • With an excellent Return On Assets value of 5.50%, ACGL belongs to the best of the industry, outperforming 81.88% of the companies in the same industry.
  • The Return On Equity of ACGL (18.01%) is better than 77.85% of its industry peers.
  • With a decent Return On Invested Capital value of 5.11%, ACGL is doing good in the industry, outperforming 75.84% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ACGL is significantly below the industry average of 15.27%.
  • The 3 year average ROIC (5.03%) for ACGL is below the current ROIC(5.11%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.5%
ROE 18.01%
ROIC 5.11%
ROA(3y)6.33%
ROA(5y)5.33%
ROE(3y)20.84%
ROE(5y)17.82%
ROIC(3y)5.03%
ROIC(5y)4.39%
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

  • With an excellent Profit Margin value of 22.58%, ACGL belongs to the best of the industry, outperforming 90.60% of the companies in the same industry.
  • ACGL's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 23.68%, ACGL is in the better half of the industry, outperforming 79.19% of the companies in the same industry.
  • ACGL's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.68%
PM (TTM) 22.58%
GM N/A
OM growth 3Y10.92%
OM growth 5Y4.5%
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.
  • ACGL has less 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.
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 Debt to FCF ratio of 0.45. This is amongst the best in the industry. ACGL outperforms 83.22% of its industry peers.
  • A Debt/Equity ratio of 0.11 indicates that ACGL is not too dependend on debt financing.
  • ACGL's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. ACGL outperforms 75.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.61
WACC8.43%
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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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%.
  • ACGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.87% yearly.
  • Looking at the last year, ACGL shows a quite strong growth in Revenue. The Revenue has grown by 14.90% in the last year.
  • 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 2.32% 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 2.61% yearly.
EPS Next Y-3.15%
EPS Next 2Y2.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.21%
Revenue Next 2Y1.72%
Revenue Next 3Y2.61%
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 2 4 6 8 10

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6

4. ACGL Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.85, which indicates a very decent valuation of ACGL.
  • ACGL's Price/Earnings ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 61.07% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ACGL to the average of the S&P500 Index (26.29), we can say ACGL is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.17 indicates a reasonable valuation of ACGL.
  • ACGL's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of ACGL to the average of the S&P500 Index (24.57), we can say ACGL is valued rather cheaply.
Industry RankSector Rank
PE 9.85
Fwd PE 10.17
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGL indicates a somewhat cheap valuation: ACGL is cheaper than 65.77% of the companies listed in the same industry.
  • 65.10% 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 5.75
EV/EBITDA 7.75
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 2Y2.32%
EPS Next 3YN/A

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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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ACGL Fundamentals: All Metrics, Ratios and Statistics

ARCH CAPITAL GROUP LTD

NASDAQ:ACGL (3/6/2026, 8:00:00 PM)

After market: 97.21 0 (0%)

97.21

+0.14 (+0.14%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-09
Earnings (Next)04-27
Inst Owners93.88%
Inst Owner Change-3.07%
Ins Owners3.18%
Ins Owner Change3.25%
Market Cap35.25B
Revenue(TTM)19.31B
Net Income(TTM)4.36B
Analysts74.81
Price Target111.24 (14.43%)
Short Float %1.59%
Short Ratio2.63
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)1.75%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)0.28%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-2.06%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-2.95%
Revenue NY rev (3m)-4.93%
Valuation
Industry RankSector Rank
PE 9.85
Fwd PE 10.17
P/S 1.83
P/FCF 5.75
P/OCF 5.71
P/B 1.46
P/tB 1.53
EV/EBITDA 7.75
EPS(TTM)9.87
EY10.15%
EPS(NY)9.56
Fwd EY9.83%
FCF(TTM)16.9
FCFY17.38%
OCF(TTM)17.02
OCFY17.51%
SpS53.24
BVpS66.75
TBVpS63.38
PEG (NY)N/A
PEG (5Y)0.2
Graham Number121.75
Profitability
Industry RankSector Rank
ROA 5.5%
ROE 18.01%
ROCE 5.79%
ROIC 5.11%
ROICexc 5.18%
ROICexgc 7.03%
OM 23.68%
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)5.03%
ROIC(5y)4.39%
ROICexc(3y)5.1%
ROICexc(5y)4.46%
ROICexgc(3y)6.85%
ROICexgc(5y)5.97%
ROCE(3y)5.7%
ROCE(5y)4.98%
ROICexgc growth 3Y18.1%
ROICexgc growth 5Y11.09%
ROICexc growth 3Y17.37%
ROICexc growth 5Y9.31%
OM growth 3Y10.92%
OM growth 5Y4.5%
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 0.57
Cap/Depr 22.8%
Cap/Sales 0.23%
Interest Coverage 35.99
Cash Conversion 129.56%
Profit Quality 140.58%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.43%
ROIC/WACC0.61
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-3.15%
EPS Next 2Y2.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y25.34%
Revenue growth 5Y18.36%
Sales Q2Q%-4.45%
Revenue Next Year-0.21%
Revenue Next 2Y1.72%
Revenue Next 3Y2.61%
Revenue Next 5YN/A
EBIT growth 1Y15.52%
EBIT growth 3Y39.03%
EBIT growth 5Y23.69%
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 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 9.85 and the Price/Book (PB) ratio is 1.46.


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 -3.15% in the next year.