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ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO) Stock Fundamental Analysis

NASDAQ:ACGLO - Nasdaq - US03939A1079 - Currency: USD

20.51  -0.02 (-0.1%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ACGLO. ACGLO was compared to 143 industry peers in the Insurance industry. While ACGLO has a great profitability rating, there are some minor concerns on its financial health. ACGLO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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7

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.
ACGLO had positive earnings in each of the past 5 years.
In the past 5 years ACGLO always reported a positive cash flow from operatings.
ACGLO Yearly Net Income VS EBIT VS OCF VS FCFACGLO 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

Looking at the Return On Assets, with a value of 6.02%, ACGLO belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
ACGLO has a better Return On Equity (20.52%) than 86.01% of its industry peers.
With a decent Return On Invested Capital value of 4.43%, ACGLO is doing good in the industry, outperforming 76.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACGLO is in line with the industry average of 4.35%.
The last Return On Invested Capital (4.43%) for ACGLO is above the 3 year average (3.89%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.02%
ROE 20.52%
ROIC 4.43%
ROA(3y)5.5%
ROA(5y)4.86%
ROE(3y)18.54%
ROE(5y)16.3%
ROIC(3y)3.89%
ROIC(5y)3.58%
ACGLO Yearly ROA, ROE, ROICACGLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

ACGLO has a better Profit Margin (25.42%) than 93.71% of its industry peers.
In the last couple of years the Profit Margin of ACGLO has grown nicely.
Looking at the Operating Margin, with a value of 23.55%, ACGLO belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
ACGLO's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 23.55%
PM (TTM) 25.42%
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
ACGLO Yearly Profit, Operating, Gross MarginsACGLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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4

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.
ACGLO has more shares outstanding than it did 1 year ago.
ACGLO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACGLO has an improved debt to assets ratio.
ACGLO Yearly Shares OutstandingACGLO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ACGLO Yearly Total Debt VS Total AssetsACGLO 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 ACGLO is 0.41, which is an excellent value as it means it would take ACGLO, only 0.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACGLO (0.41) is better than 81.82% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ACGLO is not too dependend on debt financing.
ACGLO's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. ACGLO outperforms 77.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 0.41
Altman-Z N/A
ROIC/WACC0.58
WACC7.62%
ACGLO Yearly LT Debt VS Equity VS FCFACGLO 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
ACGLO Yearly Current Assets VS Current LiabilitesACGLO 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

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5

3. Growth

3.1 Past

The earnings per share for ACGLO have decreased by -8.83% 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.
The Revenue has grown by 27.51% 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)-8.83%
EPS 3Y37.06%
EPS 5Y26.96%
EPS Q2Q%-37.14%
Revenue 1Y (TTM)27.51%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%11.73%

3.2 Future

ACGLO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.29% yearly.
ACGLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.02% yearly.
EPS Next Y-14.78%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
EPS Next 5YN/A
Revenue Next Year12.19%
Revenue Next 2Y9.38%
Revenue Next 3Y7.02%
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.
ACGLO Yearly Revenue VS EstimatesACGLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
ACGLO Yearly EPS VS EstimatesACGLO 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

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.45 indicates a rather cheap valuation of ACGLO.
Based on the Price/Earnings ratio, ACGLO is valued cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACGLO to the average of the S&P500 Index (24.21), we can say ACGLO is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.12, the valuation of ACGLO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaper than 86.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.44. ACGLO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 2.45
Fwd PE 2.12
ACGLO Price Earnings VS Forward Price EarningsACGLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ACGLO is valued cheaply inside the industry as 88.81% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACGLO indicates a rather cheap valuation: ACGLO is cheaper than 91.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1.16
EV/EBITDA 2.26
ACGLO Per share dataACGLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The decent profitability rating of ACGLO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y2.2%
EPS Next 3Y3.29%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.64%, ACGLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, ACGLO pays a better dividend. On top of this ACGLO pays more dividend than 91.61% of the companies listed in the same industry.
ACGLO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 6.64%

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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)118.11%
Div Incr Years0
Div Non Decr Years2
ACGLO Yearly Dividends per shareACGLO Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

44.62% 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.
DP44.62%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
ACGLO Yearly Income VS Free CF VS DividendACGLO 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
ACGLO Dividend Payout.ACGLO Dividend Payout, showing the Payout Ratio.ACGLO Dividend Payout.PayoutRetained Earnings

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ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP

NASDAQ:ACGLO (5/9/2025, 8:00:00 PM)

20.51

-0.02 (-0.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners91.35%
Inst Owner ChangeN/A
Ins Owners3.1%
Ins Owner ChangeN/A
Market Cap7.70B
Analysts80.91
Price Target25.02 (21.99%)
Short Float %0.03%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield 6.64%
Yearly Dividend5.08
Dividend Growth(5Y)118.11%
DP44.62%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-14 2025-03-14 (0.340625)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.58%
Min EPS beat(2)-0.36%
Max EPS beat(2)21.52%
EPS beat(4)3
Avg EPS beat(4)12.44%
Min EPS beat(4)-0.36%
Max EPS beat(4)21.52%
EPS beat(8)7
Avg EPS beat(8)18.38%
EPS beat(12)11
Avg EPS beat(12)24.08%
EPS beat(16)15
Avg EPS beat(16)28.83%
Revenue beat(2)1
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-4.29%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-6.09%
Max Revenue beat(4)4.53%
Revenue beat(8)6
Avg Revenue beat(8)1.08%
Revenue beat(12)7
Avg Revenue beat(12)-0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.84%
PT rev (1m)-4.47%
PT rev (3m)-9.8%
EPS NQ rev (1m)-8.45%
EPS NQ rev (3m)-43.02%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-13.46%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 2.45
Fwd PE 2.12
P/S 0.46
P/FCF 1.16
P/OCF 1.15
P/B 0.37
P/tB 0.4
EV/EBITDA 2.26
EPS(TTM)8.36
EY40.76%
EPS(NY)9.68
Fwd EY47.21%
FCF(TTM)17.63
FCFY85.96%
OCF(TTM)17.77
OCFY86.62%
SpS44.74
BVpS55.43
TBVpS51.83
PEG (NY)N/A
PEG (5Y)0.09
Profitability
Industry RankSector Rank
ROA 6.02%
ROE 20.52%
ROCE 5.61%
ROIC 4.43%
ROICexc 4.49%
ROICexgc 6.02%
OM 23.55%
PM (TTM) 25.42%
GM N/A
FCFM 39.41%
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 0.13
Debt/FCF 0.41
Debt/EBITDA 0.65
Cap/Depr 21.7%
Cap/Sales 0.3%
Interest Coverage 31.16
Cash Conversion 159.18%
Profit Quality 155.01%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC7.62%
ROIC/WACC0.58
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-14.78%
EPS Next 2Y2.2%
EPS Next 3Y3.29%
EPS Next 5YN/A
Revenue 1Y (TTM)27.51%
Revenue growth 3Y23.81%
Revenue growth 5Y19.89%
Sales Q2Q%11.73%
Revenue Next Year12.19%
Revenue Next 2Y9.38%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
EBIT growth 1Y24.98%
EBIT growth 3Y29.6%
EBIT growth 5Y16.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.24%
FCF growth 3Y25.05%
FCF growth 5Y26.92%
OCF growth 1Y16.07%
OCF growth 3Y24.87%
OCF growth 5Y26.64%