StockCV
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Arch Capital Group Ltd

Fire, Marine & Casualty Insurance

$95.57
-0.53%
Market cap $32.6B

Arch Capital Group Ltd is a Bermuda company that writes insurance and reinsurance with operations in the United States, Canada, Europe, Australia, and the United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage.

It is a $32.6B financial services company. Revenue grew 0.4% over the last year, and it keeps 24¢ of every dollar of sales as profit. It trades at 7.0× earnings — in the cheapest third of its own history.

Location
Pembroke, D0
Employees
8 000
Sector
Financial Services
Founded
2000

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation100Growth75Profitability85Health47Quality80Moat63

Strong valuation, growth, profitability and quality; Health lags behind.

Valuation100
  • P/E vs own history13th pct · 25/25
  • FCF yield18.6% · 25/25
  • P/S1.8x · 25/25
  • EV/EBITDA7.8x · 25/25
Growth75
  • Revenue CAGR21.2% · 25/25
  • Net income CAGR20.4% · 25/25
  • EPS CAGR ~5Y27.8% · 25/25
  • Fwd implied growth-29.2% · 0/25
Profitability85
  • ROIC17.3% · 20/25
  • ROE19.5% · 20/25
  • Net margin24.4% · 25/25
  • Operating margin23.9% · 20/25
Health47
  • Altman Z0.68 · 3/25
  • Current ratio0.72 · 6/25
  • Interest coverage6.3x · 18/25
  • Net cash / debtD/A 2% · 20/25
Quality80
  • Piotroski F6/9 · 15/25
  • Beneish M-2.42 · 20/25
  • FCF conversion129% · 25/25
  • Margin stabilityσ 7.6% · 20/25
Moat63
  • ROIC >12% years5/10 yrs · 13/25
  • Median gross marginn/a · 0/25
  • FCF-positive years9/9 yrs · 25/25
  • Worst-year net marginworst 11.0% · 25/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2023Financial
    Revenue crossed $10B
    $13.6B for the year
  2. FY2023Financial
    Best year on record
    $4.44B net income
  3. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  4. FY2016Financial
    Revenue already above $1B
    $4.46B in first reported year
  5. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  6. 2015Acquisition
    Arch Capital entered the mortgage insurance business in 2015 with the formation of Arch Mortgage Guaranty and, in…
  7. Sep 11, 2001Product
    Following the event of September 11, 2001, Arch Capital launched an underwriting initiative to address the global…
  8. 2000Founded
    The company was founded in May 2000 by Robert Clements and Peter A

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$23 958 today — price return only
$19.9B revenue in FY2025
Profitable 10 years in a row
Positive free cash flow 10 years in a row
8 000 employees
ROIC of 17.3%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • Strongly profitable — 24.4% net margin
  • Strong cash conversion — FCF is 31.5% of revenue
  • Could repay net debt from ~0.5 years of free cash flow
  • Interest covered 6.3× by operating earnings
  • High returns on invested capital (ROIC 17.3%)

Watch-outs

  • Altman Z-Score 0.68 — elevated financial-distress risk

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed
  • Revenue growing+0.4% YoY
  • Profitable$4.69B TTM
  • Profit growing+44.1% YoY
  • Generates cash$6.05B TTM
  • Debt under control~0.3y of cash flow to repay
  • Established company$32.6B market cap
  • Not printing shares-8.4% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stableAltman Z 0.7 — distress
  • Pays a dividendyield 0.14%
  • Valuation not extremeP/E 7.0
Peer comparisonArch Capital Group Ltd vs 6 largest financial services peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
ACGL this company$32.6B7.0+0.4%24.4%Mixed
BRK.A Berkshire Hathaway Inc.$1.1T11.6+3.9%22.3%Mixed
BRK.B Berkshire Hathaway$1.1T11.6+0.0%18.0%Strong
JPM JPMorgan Chase & Co.$886.2B13.6+13.5%32.6%Strained
V VISA Inc.$723.9B31.9+14.4%50.8%Solid
MA Mastercard Incorporated$516.4B31.7+16.0%46.3%Mixed
BAC Bank of America Corporation$380.4B11.3+15.9%27.8%Mixed

Head-to-head: ACGL vs BRK.A · ACGL vs BRK.B · ACGL vs JPM

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 5Buy 12Hold 10Sell 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of ACGL on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $95.57 · market cap $32.6B.