95.18 USD
-1.2 (-1.25%)
95.18 USD
0 (0%)
Overall ACGL gets a fundamental rating of 4 out of 10. We evaluated ACGL against 148 industry peers in the Insurance industry. Both the profitability and the financial health of ACGL get a neutral evaluation. Nothing too spectacular is happening here. ACGL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ACGL was profitable.
In the past year ACGL had a positive cash flow from operations.
ACGL had positive earnings in each of the past 5 years.
In the past 5 years ACGL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACGL (5.12%) is better than 83.11% of its industry peers.
ACGL has a Return On Equity of 17.10%. This is in the better half of the industry: ACGL outperforms 77.70% of its industry peers.
ACGL has a better Return On Invested Capital (4.08%) than 66.89% of its industry peers.
ACGL had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 14.93%.
The last Return On Invested Capital (4.08%) for ACGL is above the 3 year average (3.89%), which is a sign of increasing profitability.
| 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
ACGL has a better Profit Margin (21.42%) than 89.86% of its industry peers.
ACGL's Profit Margin has improved in the last couple of years.
ACGL has a better Operating Margin (21.52%) than 75.68% of its industry peers.
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.
Compared to 1 year ago, ACGL has more shares outstanding
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
The Debt to FCF ratio of ACGL is 0.43, which is an excellent value as it means it would take ACGL, only 0.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACGL (0.43) is better than 84.46% 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.
Looking at the Debt to Equity ratio, with a value of 0.12, ACGL is in the better half of the industry, outperforming 74.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC8.44%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.68%.
The Earnings Per Share has been growing by 26.96% on average over the past years. This is a very strong growth
The Revenue has grown by 17.15% in the past year. This is quite good.
ACGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.89% yearly.
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
Based on estimates for the next years, ACGL will show a small growth in Earnings Per Share. The EPS will grow by 3.32% on average per year.
ACGL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.90% yearly.
EPS Next Y0.77%
EPS Next 2Y1.11%
EPS Next 3Y3.32%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y5.21%
Revenue Next 3Y4.9%
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
Based on the Price/Earnings ratio of 10.40, the valuation of ACGL can be described as reasonable.
ACGL's Price/Earnings ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 62.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ACGL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.04, the valuation of ACGL can be described as reasonable.
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 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGL is on the same level as its industry peers.
ACGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACGL is cheaper than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 8.48 |
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.
The decent profitability rating of ACGL may justify a higher PE ratio.
PEG (NY)13.53
PEG (5Y)0.39
EPS Next 2Y1.11%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
ACGL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
95.18
-1.2 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.88%
Inst Owner Change0%
Ins Owners3.18%
Ins Owner Change-0.38%
Market Cap34.52B
Revenue(TTM)18.93B
Net Income(TTM)4.06B
Analysts74.81
Price Target109.14 (14.67%)
Short Float %1.78%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.16%
PT rev (3m)-1.11%
EPS NQ rev (1m)1.72%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)0.09%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 10.04 | ||
| P/S | 1.82 | ||
| P/FCF | 5.48 | ||
| P/OCF | 5.44 | ||
| P/B | 1.46 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)9.15
EY9.61%
EPS(NY)9.48
Fwd EY9.96%
FCF(TTM)17.36
FCFY18.24%
OCF(TTM)17.49
OCFY18.37%
SpS52.21
BVpS65.41
TBVpS61.91
PEG (NY)13.53
PEG (5Y)0.39
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
WACC8.44%
ROIC/WACC0.48
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 Y0.77%
EPS Next 2Y1.11%
EPS Next 3Y3.32%
EPS Next 5YN/A
Revenue 1Y (TTM)17.15%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%-2.05%
Revenue Next Year7.73%
Revenue Next 2Y5.21%
Revenue Next 3Y4.9%
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 4 / 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.
How profitable is ARCH CAPITAL GROUP LTD (ACGL) stock?
ARCH CAPITAL GROUP LTD (ACGL) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for ACGL stock?
The Price/Earnings (PE) ratio for ARCH CAPITAL GROUP LTD (ACGL) is 10.4 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 grow by 0.77% in the next year.