Logo image of ACGL

ARCH CAPITAL GROUP LTD (ACGL) Stock Fundamental Analysis

NASDAQ:ACGL - Nasdaq - BMG0450A1053 - Common Stock - Currency: USD

90.72  -0.74 (-0.81%)

After market: 90.72 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ACGL. ACGL was compared to 143 industry peers in the Insurance industry. ACGL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ACGL has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

ACGL had positive earnings in the past year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

With an excellent Return On Assets value of 4.69%, ACGL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With a decent Return On Equity value of 16.03%, ACGL is doing good in the industry, outperforming 75.52% of the companies in the same industry.
ACGL has a better Return On Invested Capital (3.80%) than 73.43% of its industry peers.
ACGL had an Average Return On Invested Capital over the past 3 years of 3.89%. This is in line with the industry average of 4.04%.
Industry RankSector Rank
ROA 4.69%
ROE 16.03%
ROIC 3.8%
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
ACGL Yearly ROA, ROE, ROICACGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

ACGL has a better Profit Margin (19.83%) than 90.91% of its industry peers.
ACGL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.17%, ACGL is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
ACGL's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 20.17%
PM (TTM) 19.83%
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
ACGL Yearly Profit, Operating, Gross MarginsACGL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

More info and screens

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACGL is destroying value.
ACGL has more shares outstanding than it did 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ACGL Yearly Total Debt VS Total AssetsACGL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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's Debt to FCF ratio of 0.45 is fine compared to the rest of the industry. ACGL outperforms 79.02% 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 74.83% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.45
Altman-Z N/A
ROIC/WACC0.44
WACC8.58%
ACGL Yearly LT Debt VS Equity VS FCFACGL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

More info and screens

4

3. Growth

3.1 Past

ACGL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.77%.
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.
The Revenue has grown by 24.70% in the past year. This is a very strong growth!
The Revenue has been growing by 19.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%

3.2 Future

ACGL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.07% yearly.
ACGL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.34% yearly.
EPS Next Y-13.99%
EPS Next 2Y0.81%
EPS Next 3Y3.07%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y7.63%
Revenue Next 3Y-0.34%
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.
ACGL Yearly Revenue VS EstimatesACGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
ACGL Yearly EPS VS EstimatesACGL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.84, the valuation of ACGL can be described as very reasonable.
ACGL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ACGL to the average of the S&P500 Index (26.87), we can say ACGL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.63, the valuation of ACGL can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ACGL.
When comparing the Price/Forward Earnings ratio of ACGL to the average of the S&P500 Index (35.34), we can say ACGL is valued rather cheaply.
Industry RankSector Rank
PE 10.84
Fwd PE 9.63
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

ACGL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ACGL is valued a bit cheaper than 68.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.56
EV/EBITDA 8.86
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)0.4
EPS Next 2Y0.81%
EPS Next 3Y3.07%

More info and screens

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.51%, ACGL is a good candidate for dividend investing.
ACGL's Dividend Yield is rather good when compared to the industry average which is at 3.68. ACGL pays more dividend than 82.52% of the companies in the same industry.
ACGL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 5.51%

5.2 History

On average, the dividend of ACGL grows each year by 118.11%, which is quite nice.
ACGL does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years0
ACGL Yearly Dividends per shareACGL Yearly Dividends per shareYearly Dividends per share 2024 1 2 3 4

5.3 Sustainability

51.79% of the earnings are spent on dividend by ACGL. This is a bit on the high side, but may be sustainable.
The dividend of ACGL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.79%
EPS Next 2Y0.81%
EPS Next 3Y3.07%
ACGL Yearly Income VS Free CF VS DividendACGL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
ACGL Dividend Payout.ACGL Dividend Payout, showing the Payout Ratio.ACGL Dividend Payout.PayoutRetained Earnings

More info and screens

ARCH CAPITAL GROUP LTD

NASDAQ:ACGL (8/15/2025, 8:04:07 PM)

After market: 90.72 0 (0%)

90.72

-0.74 (-0.81%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners91.39%
Inst Owner Change-1.92%
Ins Owners3.13%
Ins Owner Change5.02%
Market Cap34.06B
Analysts78.18
Price Target110.71 (22.03%)
Short Float %1.09%
Short Ratio1.92
Dividend
Industry RankSector Rank
Dividend Yield 5.51%
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.67%
Min EPS beat(2)9.27%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)11.13%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)16.8%
EPS beat(12)11
Avg EPS beat(12)24.14%
EPS beat(16)15
Avg EPS beat(16)27.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.12%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-2.23%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)1.66%
Revenue beat(8)4
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)1.68%
Revenue beat(16)8
Avg Revenue beat(16)-1.23%
PT rev (1m)-3.22%
PT rev (3m)-2.18%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.4%
Valuation
Industry RankSector Rank
PE 10.84
Fwd PE 9.63
P/S 1.83
P/FCF 5.56
P/OCF 5.52
P/B 1.48
P/tB 1.57
EV/EBITDA 8.86
EPS(TTM)8.37
EY9.23%
EPS(NY)9.42
Fwd EY10.38%
FCF(TTM)16.32
FCFY17.99%
OCF(TTM)16.44
OCFY18.13%
SpS49.62
BVpS61.38
TBVpS57.86
PEG (NY)N/A
PEG (5Y)0.4
Profitability
Industry RankSector Rank
ROA 4.69%
ROE 16.03%
ROCE 4.81%
ROIC 3.8%
ROICexc 3.85%
ROICexgc 5.18%
OM 20.17%
PM (TTM) 19.83%
GM N/A
FCFM 32.89%
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%
ROICexcg growth 3Y12.01%
ROICexcg 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 RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.45
Debt/EBITDA 0.68
Cap/Depr 16.2%
Cap/Sales 0.25%
Interest Coverage 29.35
Cash Conversion 152.76%
Profit Quality 165.86%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC8.58%
ROIC/WACC0.44
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)-14.77%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%0.39%
EPS Next Y-13.99%
EPS Next 2Y0.81%
EPS Next 3Y3.07%
EPS Next 5YN/A
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%
Revenue Next Year9.04%
Revenue Next 2Y7.63%
Revenue Next 3Y-0.34%
Revenue Next 5YN/A
EBIT growth 1Y-6.59%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.58%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y37.94%
OCF growth 3Y24.87%
OCF growth 5Y26.64%