ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP (ACGLN)
US03939A4040
We assign a fundamental rating of 6 out of 10 to ACGLN. ACGLN was compared to 141 industry peers in the Insurance industry. ACGLN scores excellent on profitability, but there are some minor concerns on its financial health. ACGLN may be a bit undervalued, certainly considering the very reasonable score on growth ACGLN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACGLN was profitable.
In the past year ACGLN had a positive cash flow from operations.
Each year in the past 5 years ACGLN has been profitable.
Each year in the past 5 years ACGLN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.47%, ACGLN belongs to the best of the industry, outperforming 94.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.99%, ACGLN belongs to the top of the industry, outperforming 93.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.28%, ACGLN belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACGLN is in line with the industry average of 4.12%.
The last Return On Invested Capital (4.28%) for ACGLN is above the 3 year average (3.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 23.99% | ||
| ROIC | 4.28% |
ROA(3y)5.04%
ROA(5y)4.49%
ROE(3y)16.86%
ROE(5y)14.97%
ROIC(3y)3.48%
ROIC(5y)3.48%
1.3 Margins
ACGLN's Profit Margin of 33.02% is amongst the best of the industry. ACGLN outperforms 95.68% of its industry peers.
In the last couple of years the Profit Margin of ACGLN has grown nicely.
With an excellent Operating Margin value of 23.75%, ACGLN belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
In the last couple of years the Operating Margin of ACGLN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.75% | ||
| PM (TTM) | 33.02% | ||
| GM | N/A |
OM growth 3Y6.49%
OM growth 5Y8.4%
PM growth 3Y26.43%
PM growth 5Y20.1%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ACGLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ACGLN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACGLN has less shares outstanding
The debt/assets ratio for ACGLN has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACGLN is 0.48, which is an excellent value as it means it would take ACGLN, only 0.48 years of fcf income to pay off all of its debts.
ACGLN has a better Debt to FCF ratio (0.48) than 89.21% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that ACGLN is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.15, ACGLN belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC7.75%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.87%, which is quite impressive.
Measured over the past years, ACGLN shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.84% on average per year.
The Revenue has grown by 35.16% in the past year. This is a very strong growth!
ACGLN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.82% yearly.
EPS 1Y (TTM)73.87%
EPS 3Y84.29%
EPS 5Y30.84%
EPS growth Q2Q16.36%
Revenue 1Y (TTM)35.16%
Revenue growth 3Y16.89%
Revenue growth 5Y19.82%
Revenue growth Q2Q31.5%
3.2 Future
The Earnings Per Share is expected to grow by 2.68% on average over the next years.
Based on estimates for the next years, ACGLN will show a quite strong growth in Revenue. The Revenue will grow by 9.42% on average per year.
EPS Next Y-2.89%
EPS Next 2Y1.68%
EPS Next 3Y2.68%
EPS Next 5YN/A
Revenue Next Year14.38%
Revenue Next 2Y11.24%
Revenue Next 3Y9.42%
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
A Price/Earnings ratio of 2.33 indicates a rather cheap valuation of ACGLN.
Compared to the rest of the industry, the Price/Earnings ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 87.05% of the companies listed in the same industry.
ACGLN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
A Price/Forward Earnings ratio of 2.40 indicates a rather cheap valuation of ACGLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 87.05% of the companies listed in the same industry.
ACGLN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACGLN indicates a rather cheap valuation: ACGLN is cheaper than 88.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLN is valued cheaply inside the industry as 89.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.3 | ||
| EV/EBITDA | 2.82 |
4.3 Compensation for Growth
ACGLN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y1.68%
EPS Next 3Y2.68%
5. Dividend
5.1 Amount
ACGLN has a Yearly Dividend Yield of 5.91%, which is a nice return.
ACGLN's Dividend Yield is rather good when compared to the industry average which is at 4.36. ACGLN pays more dividend than 91.37% of the companies in the same industry.
ACGLN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of ACGLN has a limited annual growth rate of 0.55%.
ACGLN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)0.55%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
0.91% of the earnings are spent on dividend by ACGLN. This is a low number and sustainable payout ratio.
The dividend of ACGLN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0.91%
EPS Next 2Y1.68%
EPS Next 3Y2.68%
ARCH CAPITAL GROUP LTD - ACGL 4.55 PERP
NASDAQ:ACGLN (4/24/2024, 7:00:00 PM)
19.68
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.33 | ||
| Fwd PE | 2.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 23.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.75% | ||
| PM (TTM) | 33.02% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)73.87%
EPS 3Y84.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.16%
Revenue growth 3Y16.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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