ARCH CAPITAL GROUP LTD - ACGL 5.45 PERP (ACGLO)
US03939A1079
ACGLO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. While ACGLO has a great profitability rating, there are some minor concerns on its financial health. 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
In the past year ACGLO was profitable.
ACGLO had a positive operating cash flow in the past year.
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.
1.2 Ratios
ACGLO's Return On Assets of 7.47% is amongst the best of the industry. ACGLO outperforms 94.24% of its industry peers.
Looking at the Return On Equity, with a value of 23.99%, ACGLO belongs to the top of the industry, outperforming 92.81% of the companies in the same industry.
ACGLO has a better Return On Invested Capital (4.28%) than 80.58% 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 4.12%.
The last Return On Invested Capital (4.28%) for ACGLO 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
With an excellent Profit Margin value of 33.02%, ACGLO belongs to the best of the industry, outperforming 94.96% 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 23.75%. This is amongst the best in the industry. ACGLO outperforms 82.01% of its industry peers.
ACGLO's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACGLO is destroying value.
Compared to 1 year ago, ACGLO has more shares outstanding
Compared to 5 years ago, ACGLO has less shares outstanding
ACGLO has a better debt/assets ratio than last year.
2.2 Solvency
ACGLO has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.48, ACGLO belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that ACGLO is not too dependend on debt financing.
ACGLO has a better Debt to Equity ratio (0.15) than 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC7.96%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.87% over the past year.
Measured over the past years, ACGLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.84% on average per year.
Looking at the last year, ACGLO shows a very strong growth in Revenue. The Revenue has grown by 35.16%.
The Revenue has been growing by 19.82% on average over the past years. This is quite good.
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
Based on estimates for the next years, ACGLO will show a small growth in Earnings Per Share. The EPS will grow by 2.68% on average per year.
Based on estimates for the next years, ACGLO 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
The Price/Earnings ratio is 2.65, which indicates a rather cheap valuation of ACGLO.
Based on the Price/Earnings ratio, ACGLO is valued cheaply inside the industry as 86.33% of the companies are valued more expensively.
ACGLO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.84.
Based on the Price/Forward Earnings ratio of 2.73, the valuation of ACGLO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ACGLO is valued cheaply inside the industry as 86.33% of the companies are valued more expensively.
ACGLO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.65 | ||
| Fwd PE | 2.73 |
4.2 Price Multiples
ACGLO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACGLO is cheaper than 87.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACGLO is valued cheaper than 87.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.48 | ||
| EV/EBITDA | 3.14 |
4.3 Compensation for Growth
The excellent profitability rating of ACGLO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y1.68%
EPS Next 3Y2.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.07%, ACGLO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.21, ACGLO pays a better dividend. On top of this ACGLO pays more dividend than 92.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ACGLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
5.2 History
The dividend of ACGLO has a limited annual growth rate of 0.55%.
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)0.55%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
ACGLO pays out 0.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of ACGLO 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 5.45 PERP
NASDAQ:ACGLO (4/26/2024, 7:00:00 PM)
After market: 22.7 +0.27 (+1.2%)22.43
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.65 | ||
| Fwd PE | 2.73 | ||
| 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)0.09
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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