ACGL:NSD-Arch Capital Group Ltd (USD)

COMMON STOCK | Insurance—Diversified | NSD

Last Closing Price

USD 30.54

Change

+1.47 (+5.06)%

Market Cap

USD 11.82B

Volume

2.06M

Average Target Price

USD 47.29 (+54.83%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employers' liability insurance coverages; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides reinsurance for third party liability and workers' compensation exposures; marine and aviation reinsurance; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses and commercial property risks; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers, and directly to ceding companies. The company's Mortgage segment offers private mortgage insurance covering one-to-four family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance; and risk-sharing products. This segment sells its products through direct basis and through brokers to mortgage originators. The company was founded in 1995 and is based in Pembroke, Bermuda.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-30 )

Largest Industry Peers for Insurance—Diversified

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
ACGLP Arch Capital Group Ltd

+0.22 (+0.98%)

USD13.56B 5.78 5.51
ACGLO Arch Capital Group Ltd

+0.36 (+1.60%)

USD13.24B 5.87 5.29
PFG Principal Financial Group, Inc

+0.61 (+1.87%)

USD8.95B 6.57 5.20
ATH-PA Athene Holding Ltd

+1.29 (+6.08%)

USD6.58B 2.52 N/A
ESGRO Enstar Group Limited

+1.60 (+7.05%)

USD3.22B 0.55 -5.19
ESGR Enstar Group Limited

+8.56 (+5.89%)

USD3.13B 3.51 -2.42
ESGRP Enstar Group Limited

+0.51 (+2.30%)

USD3.12B 0.54 -5.20
ANAT American National Insurance Co..

+2.95 (+3.71%)

USD2.14B 3.45 1.70
GSHD Goosehead Insurance, Inc

-0.13 (-0.28%)

USD1.67B 208.32 47.54
WTRE Watford Holdings Ltd

-0.46 (-2.98%)

USD0.31B 7.73 6.40

ETFs Containing ACGL

Symbol Name Weight Mer Price(Change) Market Cap
ULVM VictoryShares USAA MSCI U.. 0.00 % 0.20 %

+0.89 (+2.32%)

USD0.46B
PFFR InfraCap REIT Preferred E.. 0.00 % 0.45 %

-0.64 (-3.51%)

USD0.05B

Market Performance

  Market Performance vs.
Industry/Classification (Insurance—Diversified)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -28.79% 33% F 46% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -28.79% 33% F 46% F
Trailing 12 Months  
Capital Gain -5.51% 70% C- 74% C
Dividend Return N/A N/A N/A N/A N/A
Total Return -5.51% 60% D- 72% C-
Trailing 5 Years  
Capital Gain 48.73% 100% A+ 81% B-
Dividend Return N/A N/A N/A N/A N/A
Total Return 48.73% 100% A+ 79% C+
Average Annual (5 Year Horizon)  
Capital Gain 15.97% 89% B+ 73% C
Dividend Return N/A N/A N/A N/A N/A
Total Return 15.97% 89% B+ 71% C-
Risk Return Profile  
Volatility (Standard Deviation) 21.16% 33% F 66% D
Risk Adjusted Return 75.47% 78% C+ 82% B-
Market Capitalization 11.82B 82% B- 95% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Insurance—Diversified)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.51 33% F 79% C+
Price/Book Ratio 1.10 9% F 57% F
Price / Cash Flow Ratio 7.58 36% F 32% F
EV/EBITDA 6.82 27% F 43% F
Management Effectiveness  
Return on Equity 14.88% 55% F 84% B
Return on Invested Capital 6.47% 8% F 61% D-
Return on Assets 3.58% 92% A- 76% C
Debt to Equity Ratio 25.28% 17% F 59% F
Technical Ratios  
Short Ratio 1.52 83% B 68% D+
Short Percent N/A N/A N/A N/A N/A
Beta 0.70 82% B- 67% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector