Arch Capital Group
Market Cap
US$16.6b
Last Updated
2021/04/17 22:51 UTC
Data Sources
Company Financials +
Executive Summary
Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair value.
Similar Companies
Share Price & News
How has Arch Capital Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACGL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ACGL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.05%
ACGL
2.0%
US Insurance
1.3%
US Market
1 Year Return
47.6%
ACGL
43.2%
US Insurance
53.9%
US Market
Return vs Industry: ACGL exceeded the US Insurance industry which returned 43.2% over the past year.
Return vs Market: ACGL underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| ACGL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.05% | 2.0% | 1.3% |
| 30 Day | 6.5% | 3.3% | 5.3% |
| 90 Day | 15.5% | 12.7% | 8.9% |
| 1 Year | 47.6%47.6% | 46.9%43.2% | 56.6%53.9% |
| 3 Year | 48.4%48.4% | 33.5%23.5% | 64.4%53.6% |
| 5 Year | 69.8%69.8% | 80.6%57.9% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Arch Capital Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 months ago | Simply Wall St
Has Arch Capital Group Ltd.'s (NASDAQ:ACGL) Impressive Stock Performance Got Anything to Do With Its Fundamentals?4 months ago | Simply Wall St
Arch Capital Group (NASDAQ:ACGL) Shareholders Booked A 51% Gain In The Last Five Years4 months ago | Simply Wall St
How Is Arch Capital Group's (NASDAQ:ACGL) CEO Paid Relative To Peers?Valuation
Is Arch Capital Group undervalued compared to its fair value and its price relative to the market?
8.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACGL ($40.08) is trading below our estimate of fair value ($43.57)
Significantly Below Fair Value: ACGL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ACGL is good value based on its PE Ratio (11.8x) compared to the US Insurance industry average (14.8x).
PE vs Market: ACGL is good value based on its PE Ratio (11.8x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: ACGL is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: ACGL is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).
Future Growth
How is Arch Capital Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACGL's forecast earnings growth (8.4% per year) is above the savings rate (2%).
Earnings vs Market: ACGL's earnings (8.4% per year) are forecast to grow slower than the US market (18% per year).
High Growth Earnings: ACGL's earnings are forecast to grow, but not significantly.
Revenue vs Market: ACGL's revenue (4.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ACGL's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACGL's Return on Equity is forecast to be low in 3 years time (10.5%).
Past Performance
How has Arch Capital Group performed over the past 5 years?
23.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACGL has high quality earnings.
Growing Profit Margin: ACGL's current net profit margins (16%) are lower than last year (23%).
Past Earnings Growth Analysis
Earnings Trend: ACGL's earnings have grown significantly by 23.3% per year over the past 5 years.
Accelerating Growth: ACGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ACGL had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Insurance industry average (-9.8%).
Return on Equity
High ROE: ACGL's Return on Equity (10.5%) is considered low.
Financial Health
How is Arch Capital Group's financial position?
Financial Position Analysis
Short Term Liabilities: ACGL's short term assets ($14.4B) exceed its short term liabilities ($10.7B).
Long Term Liabilities: ACGL's short term assets ($14.4B) do not cover its long term liabilities ($18.6B).
Debt to Equity History and Analysis
Debt Level: ACGL's debt to equity ratio (23.7%) is considered satisfactory.
Reducing Debt: ACGL's debt to equity ratio has reduced from 24.1% to 23.7% over the past 5 years.
Debt Coverage: ACGL's debt is well covered by operating cash flow (87%).
Interest Coverage: ACGL's interest payments on its debt are well covered by EBIT (12.7x coverage).
Balance Sheet
Dividend
What is Arch Capital Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ACGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ACGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ACGL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ACGL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ACGL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Marc Grandisson (52 yo)
3.08yrs
Tenure
US$8,779,832
Compensation
Mr. Marc Grandisson serves as a Director of Arch Capital Group Ltd since March 2018. Mr. Grandisson has been Chief Executive Officer since March 3, 2018 and served as President of Arch Capital Group Ltd si...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD8.78M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ACGL's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: ACGL's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Arch Capital Group Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arch Capital Group Ltd.
- Ticker: ACGL
- Exchange: NasdaqGS
- Founded: 1995
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$16.648b
- Shares outstanding: 401.64m
- Website: https://www.archcapgroup.com
Number of Employees
Location
- Arch Capital Group Ltd.
- Waterloo House
- Ground Floor
- Pembroke
- HM 08
- Bermuda
Listings
Biography
Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company’s Insurance segment offers primary and excess casualty cover...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:51 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.