(ACGL) Arch Capital - Ratings and Ratios
Insurance, Reinsurance, Mortgage
ACGL EPS (Earnings per Share)
ACGL Revenue
Description: ACGL Arch Capital
Arch Capital Group Ltd. (NASDAQ: ACGL) operates through three core segments-Insurance, Reinsurance and Mortgage-offering a broad suite of products that span commercial auto, liability, property, workers’ compensation, marine, aviation, construction, travel, health, surety, and specialty lines, as well as Lloyd’s syndicates and warranty solutions.
The Insurance segment generates the majority of premium revenue by underwriting commercial and specialty risks in the United States, Canada, Bermuda, the United Kingdom, Europe and Australia, while the Reinsurance segment provides excess-of-loss and quota-share coverage for casualty, marine, aviation and property (catastrophe and non-catastrophe) lines.
The Mortgage segment focuses on U.S. primary mortgage insurance tied largely to loans sold to Fannie Mae and Freddie Mac, complemented by reinsurance and underwriting services for credit-risk transfer transactions and a smaller international mortgage portfolio.
Key performance indicators from the most recent quarterly filing (Q3 2024) show a combined ratio of 94.5% (down 3 percentage points YoY), net income of $210 million, earnings per share of $2.30, and a book-value-per-share of roughly $30, supporting a dividend yield near 3.2%.
Sector drivers that materially affect Arch’s results include (1) the U.S. housing market’s health, which influences mortgage-insurance volume; (2) the frequency and severity of natural catastrophes, impacting property and catastrophe reinsurance loss trends; and (3) the prevailing interest-rate environment, which determines investment-income returns on the firm’s sizable float.
If you’re looking to deepen your quantitative assessment of ACGL’s valuation dynamics, a quick check of ValueRay’s forward-looking metrics and scenario analyses can provide useful context without any commitment.
ACGL Stock Overview
| Market Cap in USD | 35,120m |
| Sub-Industry | Property & Casualty Insurance |
| IPO / Inception | 1995-09-13 |
ACGL Stock Ratings
| Growth Rating | 37.6% |
| Fundamental | 78.9% |
| Dividend Rating | 41.4% |
| Return 12m vs S&P 500 | -24.9% |
| Analyst Rating | 4.14 of 5 |
ACGL Dividends
| Dividend Yield 12m | 5.58% |
| Yield on Cost 5y | 17.59% |
| Annual Growth 5y | 0.00% |
| Payout Consistency | 100.0% |
| Payout Ratio | 58.6% |
ACGL Growth Ratios
| Growth Correlation 3m | 45.4% |
| Growth Correlation 12m | -56.5% |
| Growth Correlation 5y | 95.1% |
| CAGR 5y | 24.83% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.12 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.20 |
| Sharpe Ratio 12m | -0.43 |
| Alpha | -27.26 |
| Beta | 0.451 |
| Volatility | 21.66% |
| Current Volume | 2137.5k |
| Average Volume 20d | 1801.4k |
| Stop Loss | 86.8 (-3.1%) |
| Signal | -0.79 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (3.73b TTM) > 0 and > 6% of Revenue (6% = 1.16b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA -2.40pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 19.45% (prev -26.40%; Δ 45.85pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 6.17b > Net Income 3.73b (YES >=105%, WARN >=100%) |
| Net Debt (1.75b) to EBITDA (4.29b) ratio: 0.41 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.87 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (379.9m) change vs 12m ago -0.45% (target <= -2.0% for YES) |
| Gross Margin 69.07% (prev 38.10%; Δ 30.96pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 26.72% (prev 22.94%; Δ 3.77pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.12 (EBITDA TTM 4.29b / Interest Expense TTM 145.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.04
| (A) 0.05 = (Total Current Assets 8.05b - Total Current Liabilities 4.30b) / Total Assets 78.79b |
| (B) 0.31 = Retained Earnings (Balance) 24.48b / Total Assets 78.79b |
| (C) 0.04 = EBIT TTM 2.77b / Avg Total Assets 72.13b |
| (D) 0.44 = Book Value of Equity 24.43b / Total Liabilities 55.75b |
| Total Rating: 2.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 78.91
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 16.62% = 5.0 |
| 3. FCF Margin 31.80% = 7.50 |
| 4. Debt/Equity 0.12 = 2.49 |
| 5. Debt/Ebitda 0.41 = 2.37 |
| 6. ROIC - WACC (= 2.66)% = 3.33 |
| 7. RoE 17.03% = 1.42 |
| 8. Rev. Trend 97.88% = 7.34 |
| 9. EPS Trend -40.87% = -2.04 |
What is the price of ACGL shares?
Over the past week, the price has changed by -3.79%, over one month by -0.32%, over three months by +1.56% and over the past year by -12.83%.
Is Arch Capital a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ACGL is around 99.91 USD . This means that ACGL is currently undervalued and has a potential upside of +11.54% (Margin of Safety).
Is ACGL a buy, sell or hold?
- Strong Buy: 6
- Buy: 4
- Hold: 4
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the ACGL price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 108.9 | 21.6% |
| Analysts Target Price | 108.9 | 21.6% |
| ValueRay Target Price | 110.1 | 22.9% |
Last update: 2025-10-10 02:25
ACGL Fundamental Data Overview
P/E Trailing = 9.7283
P/E Forward = 9.3809
P/S = 1.8334
P/B = 1.4968
P/EG = 2.24
Beta = 0.451
Revenue TTM = 19.27b USD
EBIT TTM = 2.77b USD
EBITDA TTM = 4.29b USD
Long Term Debt = 2.73b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 2.73b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.75b USD (from netDebt column, last quarter)
Enterprise Value = 36.87b USD (35.12b + Debt 2.73b - CCE 983.0m)
Interest Coverage Ratio = 19.12 (Ebit TTM 2.77b / Interest Expense TTM 145.0m)
FCF Yield = 16.62% (FCF TTM 6.13b / Enterprise Value 36.87b)
FCF Margin = 31.80% (FCF TTM 6.13b / Revenue TTM 19.27b)
Net Margin = 19.38% (Net Income TTM 3.73b / Revenue TTM 19.27b)
Gross Margin = 69.07% ((Revenue TTM 19.27b - Cost of Revenue TTM 5.96b) / Revenue TTM)
Gross Margin QoQ = 99.08% (prev 27.03%)
Tobins Q-Ratio = 0.47 (Enterprise Value 36.87b / Total Assets 78.79b)
Interest Expense / Debt = 1.39% (Interest Expense 38.0m / Debt 2.73b)
Taxrate = 15.17% (214.0m / 1.41b)
NOPAT = 2.35b (EBIT 2.77b * (1 - 15.17%))
Current Ratio = 1.87 (Total Current Assets 8.05b / Total Current Liabilities 4.30b)
Debt / Equity = 0.12 (Debt 2.73b / totalStockholderEquity, last quarter 23.04b)
Debt / EBITDA = 0.41 (Net Debt 1.75b / EBITDA 4.29b)
Debt / FCF = 0.28 (Net Debt 1.75b / FCF TTM 6.13b)
Total Stockholder Equity = 21.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.74% (Net Income 3.73b / Total Assets 78.79b)
RoE = 17.03% (Net Income TTM 3.73b / Total Stockholder Equity 21.92b)
RoCE = 11.25% (EBIT 2.77b / Capital Employed (Equity 21.92b + L.T.Debt 2.73b))
RoIC = 9.87% (NOPAT 2.35b / Invested Capital 23.82b)
WACC = 7.21% (E(35.12b)/V(37.85b) * Re(7.68%) + D(2.73b)/V(37.85b) * Rd(1.39%) * (1-Tc(0.15)))
Discount Rate = 7.68% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 0.01%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈6.34b ; Y1≈7.82b ; Y5≈13.35b
Fair Price DCF = 608.3 (DCF Value 227.04b / Shares Outstanding 373.2m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -40.87 | EPS CAGR: -57.65% | SUE: -4.0 | # QB: 0
Revenue Correlation: 97.88 | Revenue CAGR: 30.80% | SUE: 2.15 | # QB: 1
Additional Sources for ACGL Stock
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Fund Manager Positions: Dataroma | Stockcircle