ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO) Stock Fundamental Analysis
USA - NASDAQ:ACGLO - US03939A1079
21.66 USD
+0.08 (+0.37%)
Taking everything into account, ACGLO scores 6 out of 10 in our fundamental rating. ACGLO was compared to 147 industry peers in the Insurance industry. ACGLO has only an average score on both its financial health and profitability. ACGLO may be a bit undervalued, certainly considering the very reasonable score on growth Finally ACGLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACGLO had positive earnings in the past year.
In the past year ACGLO had a positive cash flow from operations.
Each year in the past 5 years ACGLO has been profitable.
Each year in the past 5 years ACGLO had a positive operating cash flow.
1.2 Ratios
ACGLO has a Return On Assets of 4.69%. This is amongst the best in the industry. ACGLO outperforms 84.35% of its industry peers.
ACGLO has a Return On Equity of 16.03%. This is in the better half of the industry: ACGLO outperforms 75.51% of its industry peers.
With a decent Return On Invested Capital value of 3.80%, ACGLO is doing good in the industry, outperforming 68.03% of the companies in the same industry.
ACGLO had an Average Return On Invested Capital over the past 3 years of 3.89%. This is in line with the industry average of 4.46%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of ACGLO (19.83%) is better than 91.16% of its industry peers.
In the last couple of years the Profit Margin of ACGLO has grown nicely.
ACGLO has a better Operating Margin (20.17%) than 78.23% of its industry peers.
ACGLO's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
ACGLO 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, ACGLO has more shares outstanding
Compared to 5 years ago, ACGLO has less shares outstanding
The debt/assets ratio for ACGLO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACGLO is 0.45, which is an excellent value as it means it would take ACGLO, only 0.45 years of fcf income to pay off all of its debts.
ACGLO's Debt to FCF ratio of 0.45 is amongst the best of the industry. ACGLO outperforms 80.95% of its industry peers.
ACGLO has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
ACGLO has a Debt to Equity ratio of 0.12. This is in the better half of the industry: ACGLO outperforms 74.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.51
WACC7.4%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ACGLO have decreased strongly by -14.77% in the last year.
Measured over the past years, ACGLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.96% on average per year.
ACGLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.70%.
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
ACGLO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.81% yearly.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y-11.28%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
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.
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
With a Price/Earnings ratio of 2.59, the valuation of ACGLO can be described as very cheap.
ACGLO's Price/Earnings ratio is rather cheap when compared to the industry. ACGLO is cheaper than 85.71% of the companies in the same industry.
ACGLO is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 2.31, the valuation of ACGLO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaper than 87.76% of the companies in the same industry.
ACGLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.59 | ||
| Fwd PE | 2.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACGLO is valued cheaper than 91.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLO is valued cheaply inside the industry as 91.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.32 | ||
| EV/EBITDA | 2.42 |
4.3 Compensation for Growth
The decent profitability rating of ACGLO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y0.63%
EPS Next 3Y2.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.31%, ACGLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.31, ACGLO pays a better dividend. On top of this ACGLO pays more dividend than 91.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ACGLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
5.2 History
On average, the dividend of ACGLO grows each year by 118.11%, which is quite nice.
ACGLO has been paying a dividend for over 5 years, so it has already some track record.
ACGLO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ACGLO pays out 51.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACGLO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.79%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (10/20/2025, 4:00:19 PM)
21.66
+0.08 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner ChangeN/A
Ins Owners3.14%
Ins Owner ChangeN/A
Market Cap8.08B
Analysts76.67
Price Target26.38 (21.79%)
Short Float %0.03%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.79%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)-0.64%
PT rev (3m)1.92%
EPS NQ rev (1m)20.44%
EPS NQ rev (3m)24.36%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)3.15%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.59 | ||
| Fwd PE | 2.31 | ||
| P/S | 0.43 | ||
| P/FCF | 1.32 | ||
| P/OCF | 1.31 | ||
| P/B | 0.35 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | 2.42 |
EPS(TTM)8.37
EY38.64%
EPS(NY)9.39
Fwd EY43.34%
FCF(TTM)16.42
FCFY75.79%
OCF(TTM)16.54
OCFY76.36%
SpS49.91
BVpS61.74
TBVpS58.2
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.4%
ROIC/WACC0.51
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-11.28%
EPS Next 2Y0.63%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)24.7%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%15%
Revenue Next Year9.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.8%
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%