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Arch Capital (ACGL) Stock Analysis

This is a peer-relative look at Arch Capital (ACGL): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Insurance peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Arch Capital (ACGL)
Profile ItemACGL
NameArch Capital Group Ltd.
Country/RegionBermuda
GICS SectorFinancials
GICS Industry GroupInsurance
GICS IndustryInsurance
GICS Sub-IndustryProperty & Casualty Insurance
Market Capitalization34.92 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateSeptember 14, 1995
Security TypeCommon Stock

Price Performance

Cumulative Growth

ACGL
GSPC
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Arch Capital (ACGL) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Arch Capital (ACGL) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Arch Capital (ACGL) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Total Return (1Y)19.55%13.21%
Total Return (3Y, Annualized)9.97%16.41%
Total Return (5Y, Annualized)21.79%10.37%

Risk Profile

Drawdown History

ACGL
GSPC
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Arch Capital (ACGL) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Arch Capital (ACGL) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Volatility (1Y, Annualized)21.17%28.84%
Beta (5Y)0.220.50
Max Drawdown (5Y)-22.43%-38.77%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ACGL is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Sharpe Ratio (1Y)0.720.28
Sortino Ratio (1Y)1.030.41

Profitability

ROE (TTM)

Arch Capital (ACGL) posts ROE of 18.74%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ACGL

Insurance industry group

18.74%

Group distribution
Max
41.68%
Q3
22.04%
ACGL
18.74%
Median
14.81%
Q1
8.79%
Min
-10.66%
Largest peers
PGR
33.24%
TRV
27.50%
MRSH
27.24%
ACGL
18.74%
CB
14.25%
MFC
12.24%
AJG
7.21%
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Where Arch Capital (ACGL) stands on ROE within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Arch Capital (ACGL) keeps 23.31% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ACGL

Insurance industry group

23.31%

Group distribution
Max
29.92%
ACGL
23.31%
Q3
17.03%
Median
10.97%
Q1
6.21%
Min
-4.68%
Largest peers
ACGL
23.31%
MFC
18.97%
CB
18.13%
TRV
17.03%
MRSH
14.20%
PGR
12.67%
AJG
10.78%
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Where Arch Capital (ACGL) stands on net margin within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for Arch Capital (ACGL) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
ROE (TTM)18.74%14.81%
ROA (TTM)3.90%2.72%
Net Margin (TTM)23.31%10.97%
Operating Margin (TTM)----
Gross Margin (TTM)----

Growth

Revenue Growth

Arch Capital (ACGL) grew revenue 13.96%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Arch Capital (ACGL): Revenue Growth across different time periods, set against Insurance industry-group medians.

EPS Growth

Arch Capital (ACGL) grew earnings per share 3.66%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Arch Capital (ACGL): EPS Growth across different time periods, set against Insurance industry-group medians.

Growth Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Revenue Growth (YoY)13.96%7.89%
Revenue Growth (3Y CAGR)26.14%11.40%
EPS Growth (YoY)3.66%21.77%
EPS Growth (3Y CAGR)45.06%18.46%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Arch Capital (ACGL) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Arch Capital (ACGL) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Arch Capital (ACGL) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

ACGL

Insurance industry group

0.00%

Group distribution
Max
5.12%
Q3
2.15%
Median
0.98%
ACGL
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MFC
4.32%
MRSH
1.80%
TRV
1.17%
CB
1.07%
AJG
0.95%
PGR
0.17%
ACGL
0.00%
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Where Arch Capital (ACGL) stands on dividend yield within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Arch Capital (ACGL) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

ACGL

Insurance industry group

0.00%

Group distribution
Max
76.67%
Q3
35.18%
Median
14.74%
ACGL
0.00%
Q1
0.00%
Min
0.00%
Largest peers
PGR
70.03%
MFC
54.30%
MRSH
44.14%
AJG
41.98%
CB
13.95%
TRV
12.36%
ACGL
0.00%
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Where Arch Capital (ACGL) stands on payout ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
Dividend Yield (TTM)0.00%0.98%
Dividend Payout Ratio (TTM)0.00%14.74%

Valuation

P/E Ratio (TTM)

Arch Capital (ACGL) trades at P/E ratio of 8.77, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

ACGL

Insurance industry group

8.77

Group distribution
Max
28.37
Q3
18.75
Median
12.23
Q1
9.08
ACGL
8.77
Min
2.32
Largest peers
AJG
42.99
MRSH
24.50
MFC
17.23
CB
12.79
PGR
11.47
TRV
10.39
ACGL
8.77
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Where Arch Capital (ACGL) stands on P/E ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Arch Capital (ACGL) trades at 1.86 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

ACGL

Insurance industry group

1.86

Group distribution
Max
4.03
Q3
2.25
ACGL
1.86
Median
1.23
Q1
0.85
Min
0.07
Largest peers
AJG
4.58
MRSH
3.42
CB
2.25
MFC
2.11
ACGL
1.86
TRV
1.66
PGR
1.44
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Where Arch Capital (ACGL) stands on P/S ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Arch Capital (ACGL) trades at 1.57 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

ACGL

Insurance industry group

1.57

Group distribution
Max
5.07
Q3
2.79
Median
1.76
ACGL
1.57
Q1
1.23
Min
0.30
Largest peers
MRSH
6.64
PGR
3.82
AJG
3.00
TRV
2.79
MFC
2.13
CB
1.91
ACGL
1.57
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Where Arch Capital (ACGL) stands on P/B ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Arch Capital (ACGL) metric values compared with Insurance industry-group medians
MetricCurrent stock: ACGLIndustry group median
P/E Ratio (TTM)8.7712.23
P/S Ratio (TTM)1.861.23
P/B Ratio (MRQ)1.571.76
Free Cash Flow Yield (TTM)----