Arch Capital Group Ltd. (ACGL)
POSITIVEPrice
$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
UndervaluedFair Value
$242.32
Current Price
$91.66
Margin of Safety
+62.2%
Fair Value Range
$157.51 - $327.13
Estimation Methods
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
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Nicolas Alain Emmanuel Papadopoulo | CEO & Director | 63 |
| Mr. Maamoun Jamil Rajeh | President | 55 |
| Mr. Francois Morin | Executive VP, CFO & Treasurer | 58 |
| Ms. Christine Lee Todd CFA | Executive VP & Chief Investment Officer | 58 |
| Mr. Greg Hare | Chief Communications Officer | - |
| Patrick Nails | Chief Claims Officer of Arch Insurance Group Inc | - |
| Mr. Donald S. Watson | Executive Vice President of Financial Services | - |
| Ms. Janice C. Englesbe B.Ec, CFA | Executive VP & Chief Risk Officer | 56 |
| Ms. Joy A. Huibonhoa | Executive VP & Deputy General Counsel | - |
| Mr. Christopher Andrew Hovey | Chief Operations Officer of Arch Capital Services LLC | 58 |
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.
- 3/17/2026POSITIVEIf 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.
- 2/23/2026NEUTRALIf 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