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
| Profile Item | ACGL |
|---|---|
| Name | Arch Capital Group Ltd. |
| Country/Region | Bermuda |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Property & Casualty Insurance |
| Market Capitalization | 34.92 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | September 14, 1995 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: ACGL | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: ACGL | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 21.17% | 28.84% |
| Beta (5Y) | 0.22 | 0.50 |
| Max Drawdown (5Y) | -22.43% | -38.77% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: ACGL | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.72 | 0.28 |
| Sortino Ratio (1Y) | 1.03 | 0.41 |
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%
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%
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
| Metric | Current stock: ACGL | Industry 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.
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.
Growth Metrics
| Metric | Current stock: ACGL | Industry 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
| Metric | Current stock: ACGL | Industry 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%
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%
Dividend Metrics
| Metric | Current stock: ACGL | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: ACGL | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 8.77 | 12.23 |
| P/S Ratio (TTM) | 1.86 | 1.23 |
| P/B Ratio (MRQ) | 1.57 | 1.76 |
| Free Cash Flow Yield (TTM) | -- | -- |