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Arch Capital Group Ltd. (ACGL)

POSITIVE
Financial ServicesInsurance - DiversifiedBermuda

Price

$91.66

Market Cap

$32.03B

Fundamental

69

Technical

75

Composite

71

AI Analysis

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Overview

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; and casualty insurance. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 and is headquartered in Pembroke, Bermuda.

Balance Sheet & Liquidity

Revenue

$4.52B

Net Income

$1.05B

Free Cash Flow

$549M

Total Equity

$24.19B

Total Liabilities

$57.26B

Current Ratio

1.42

Interest Coverage

29.97

Debt/EBITDA

51.63

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Undervalued

Fair Value

$242.32

Current Price

$91.66

Margin of Safety

+62.2%

Fair Value Range

$157.51 - $327.13

Estimation Methods

Analyst Target:$108.71
DCF:$305.43
PE-based:$121.68
Graham Growth:$669.24
EPV:$133.65
Analyst Consensus:Buy (17B / 10H / 1S)
Last Earnings Surprise:-1.10%

Valuation Metrics

P/E Ratio

31.18

ROE

4.3%

P/B Ratio

1.32

P/FCF

58.33

Gross Margin

-

ROIC

3.6%

Value Creation (Economic Moat)

ROIC

3.6%

WACC

2.9%

ROIC − WACC

+0.8 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 18.13%
  • Price CAGR 12.29%
  • P/B Ratio 1.32
  • Debt/Equity ratio
  • Operating Margin 24.5%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Low reliance on intangibles
  • ROE 20.5%
  • Revenue Growth 5Y 18.4%
  • Analyst Consensus 61% Buy
  • Earnings Surprise avg 10.3%
  • PEG Ratio 0.23
  • Earnings Quality (OCF/NI) 1.13
  • Share Dilution -4.2%
  • Net Margin Trend 23.2% vs 22.1%

Failed (8)

  • ROIC 3.6%
  • P/FCF 58.33
  • CapEx intensity
  • Debt/EBITDA
  • Return on Tangible Assets
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Piotroski F-Score 4/9

Unavailable (2)

  • Gross Margin NaN%
  • Dividend Payout NaN%

Price Chart

Technical Indicators

RSI (14)

48.14

SMA 50

$94.34

SMA 200

$93.38

MACD

0.21

Volatility

1.5%

Momentum (12m)

-0.3%

RSI 48.1, SMA trend bullish, momentum -0.3%.

Piotroski F-Score

4/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.13

High quality: earnings backed by cash

Share Dilution

-420.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Nicolas Alain Emmanuel PapadopouloCEO & Director63
Mr. Maamoun Jamil RajehPresident55
Mr. Francois MorinExecutive VP, CFO & Treasurer58
Ms. Christine Lee Todd CFAExecutive VP & Chief Investment Officer58
Mr. Greg HareChief Communications Officer-
Patrick NailsChief Claims Officer of Arch Insurance Group Inc-
Mr. Donald S. WatsonExecutive Vice President of Financial Services-
Ms. Janice C. Englesbe B.Ec, CFAExecutive VP & Chief Risk Officer56
Ms. Joy A. HuibonhoaExecutive VP & Deputy General Counsel-
Mr. Christopher Andrew HoveyChief Operations Officer of Arch Capital Services LLC58

Audit Risk

6

Board Risk

4

Compensation Risk

2

Shareholder Rights Risk

8

Latest News

Recent headlines for ACGL, sourced from Markets Gazette.

  • 5/11/2026POSITIVE
    $1000 Invested In Arch Capital Group 10 Years Ago Would Be Worth This Much Today

    An investment of $1,000 in Arch Capital Group (ACGL) ten years ago would have yielded a significant return, demonstrating the company's strong long-term performance. While specific figures are not provided in the summary, the implication of substantial growth suggests robust financial health and effective business strategy. Investors looking at this historical data may find ACGL an attractive prospect for sustained capital appreciation, reflecting its resilience and ability to generate value over extended periods.

  • 3/17/2026POSITIVE
    If You Invested $1000 In Arch Capital Group Stock 15 Years Ago, You Would Have This Much Today

    An investment of $1000 in Arch Capital Group stock 15 years ago would have yielded a substantial return, illustrating the company's strong long-term performance. While specific figures are not provided in the title, the implication of significant growth suggests robust business expansion and effective capital management. This historical performance indicates a potentially favorable outlook for investors, highlighting Arch Capital's ability to generate value through its insurance and reinsurance operations, potentially driven by favorable underwriting cycles and strategic acquisitions.

  • 2/23/2026NEUTRAL
    If You Invested $100 In Arch Capital Group Stock 15 Years Ago, You Would Have This Much Today

    A retrospective analysis highlights the remarkable performance of Arch Capital Group (ACGL) over the past 15 years, illustrating how a hypothetical $100 investment would have grown into a considerably larger sum. This type of content, while showcasing the company's historical ability to generate shareholder value, provides no new operational or strategic information. It is a calculation exercise based on past data, useful for illustrating the concept of long-term growth but lacking any forward-looking elements. For investors, the news is purely informational and does not act as a catalyst for the stock price in the short term, as it does not reflect changes in company fundamentals, analyst estimates, or current market conditions. The impact on today's valuation is therefore null.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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