ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO) Stock Fundamental Analysis
NASDAQ:ACGLO - Nasdaq - US03939A1079 - Currency: USD
Overall ACGLO gets a fundamental rating of 6 out of 10. We evaluated ACGLO against 142 industry peers in the Insurance industry. While ACGLO has a great profitability rating, there are some minor concerns on its financial health. ACGLO is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ACGLO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACGLO was profitable.
In the past year ACGLO had a positive cash flow from operations.
In the past 5 years ACGLO has always been profitable.
ACGLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, ACGLO belongs to the top of the industry, outperforming 86.62% of the companies in the same industry.
ACGLO has a better Return On Equity (17.29%) than 80.28% of its industry peers.
ACGLO's Return On Invested Capital of 3.96% is fine compared to the rest of the industry. ACGLO outperforms 76.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACGLO is in line with the industry average of 4.07%.
The last Return On Invested Capital (3.96%) for ACGLO is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 17.29% | ||
| ROIC | 3.96% |
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
With an excellent Profit Margin value of 21.09%, ACGLO belongs to the best of the industry, outperforming 90.85% of the companies in the same industry.
ACGLO's Profit Margin has improved in the last couple of years.
ACGLO has a Operating Margin of 21.15%. This is amongst the best in the industry. ACGLO outperforms 81.69% of its industry peers.
In the last couple of years the Operating Margin of ACGLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.15% | ||
| PM (TTM) | 21.09% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACGLO is destroying value.
ACGLO has more shares outstanding than it did 1 year ago.
ACGLO has less shares outstanding than it did 5 years ago.
ACGLO has a better debt/assets ratio than last year.
2.2 Solvency
ACGLO has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.42, ACGLO belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that ACGLO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, ACGLO is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.52
WACC7.64%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACGLO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.83%.
ACGLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.96% yearly.
ACGLO shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.93%.
Measured over the past years, ACGLO shows a quite strong growth in Revenue. The Revenue has been growing by 19.89% on average per year.
EPS 1Y (TTM)-8.83%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-37.14%
Revenue 1Y (TTM)26.93%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%10.53%
3.2 Future
The Earnings Per Share is expected to grow by 3.09% on average over the next years.
The Revenue is expected to grow by 6.38% on average over the next years.
EPS Next Y-13.94%
EPS Next 2Y1.41%
EPS Next 3Y3.09%
EPS Next 5YN/A
Revenue Next Year10.37%
Revenue Next 2Y8.05%
Revenue Next 3Y6.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.44, which indicates a rather cheap valuation of ACGLO.
Based on the Price/Earnings ratio, ACGLO is valued cheaply inside the industry as 83.80% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACGLO to the average of the S&P500 Index (26.25), we can say ACGLO is valued rather cheaply.
A Price/Forward Earnings ratio of 2.14 indicates a rather cheap valuation of ACGLO.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaply inside the industry as 86.62% of the companies are valued more expensively.
ACGLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 2.14 |
4.2 Price Multiples
90.14% of the companies in the same industry are more expensive than ACGLO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ACGLO is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.17 | ||
| EV/EBITDA | 2.3 |
4.3 Compensation for Growth
ACGLO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y1.41%
EPS Next 3Y3.09%
5. Dividend
5.1 Amount
ACGLO has a Yearly Dividend Yield of 6.67%, which is a nice return.
ACGLO's Dividend Yield is rather good when compared to the industry average which is at 3.09. ACGLO pays more dividend than 92.25% of the companies in the same industry.
ACGLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
5.2 History
The dividend of ACGLO is nicely growing with an annual growth rate of 118.11%!
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
51.29% of the earnings are spent on dividend by ACGLO. 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.
DP51.29%
EPS Next 2Y1.41%
EPS Next 3Y3.09%
ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP
NASDAQ:ACGLO (6/2/2025, 10:02:59 AM)
20.3902
-0.05 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.35%
Inst Owner ChangeN/A
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap7.64B
Analysts80.91
Price Target25.02 (22.71%)
Short Float %0.02%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP51.29%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.8%
Min EPS beat(2)14.08%
Max EPS beat(2)21.52%
EPS beat(4)3
Avg EPS beat(4)12.33%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)17.99%
EPS beat(12)11
Avg EPS beat(12)25.11%
EPS beat(16)15
Avg EPS beat(16)27.97%
Revenue beat(2)0
Avg Revenue beat(2)-5.15%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-4.29%
Revenue beat(4)1
Avg Revenue beat(4)-3.68%
Min Revenue beat(4)-6.09%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.6%
Revenue beat(12)7
Avg Revenue beat(12)1.17%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)-0.33%
PT rev (3m)-10.1%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 2.14 | ||
| P/S | 0.43 | ||
| P/FCF | 1.17 | ||
| P/OCF | 1.16 | ||
| P/B | 0.35 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 2.3 |
EPS(TTM)8.36
EY41%
EPS(NY)9.53
Fwd EY46.75%
FCF(TTM)17.4
FCFY85.35%
OCF(TTM)17.52
OCFY85.94%
SpS47.13
BVpS57.49
TBVpS54
PEG (NY)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 17.29% | ||
| ROCE | 5.01% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 5.41% | ||
| OM | 21.15% | ||
| PM (TTM) | 21.09% | ||
| GM | N/A | ||
| FCFM | 36.92% |
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.42 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 17.11% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 29.42 | ||
| Cash Conversion | 164.22% | ||
| Profit Quality | 175.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.64%
ROIC/WACC0.52
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)-8.83%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-37.14%
EPS Next Y-13.94%
EPS Next 2Y1.41%
EPS Next 3Y3.09%
EPS Next 5YN/A
Revenue 1Y (TTM)26.93%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%10.53%
Revenue Next Year10.37%
Revenue Next 2Y8.05%
Revenue Next 3Y6.38%
Revenue Next 5YN/A
EBIT growth 1Y7.85%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.19%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y55.37%
OCF growth 3Y24.87%
OCF growth 5Y26.64%