Arch Capital Group (ACGL)
Financials · $32.4B market cap · SEC CIK 0000947484
fundamentals score out of 100
Next reports on Oct 26, 2026, after the close, with analysts expecting $1.89 in earnings per share.
The case for ACGL
- Cheap on earnings at 6.9×, well under the market's usual 20×.
- 25% of revenue drops through to net profit.
- Earnings per share up 31.9%.
- A PEG of 0.22: a P/E of 6.9× is low for EPS growing 32%.
- Has compounded revenue at 18.4% a year over five years.
- Return on equity of 20%.
The case against
- Revenue was flat on the year (-0.8%).
- Its weakest area is the price trend (57/100): +8.3% over a year, +5.0% over three months, 51% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 88 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 67 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 72 |
| Momentumhow the price has behaved lately | 57 |
| Stabilityhow violently it moves, what it owes and what it pays you | 76 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 74 Financials companies.
Key numbers
| Price / earnings | 6.9× |
|---|---|
| Price / book | 1.41× |
| Price / sales | 1.8× |
| Revenue growth (YoY) | -0.8% |
| EPS growth (YoY) | +31.9% |
| Gross margin | — |
| Operating margin | 24% |
| Net margin | 25% |
| Return on equity | 20% |
| Debt / equity | 0.18× |
| Current ratio | 0.72 |
| Dividend yield | 0.14% |
| Beta | 0.22 |
| 52-week range | $82.45 – $107.09 |
| Position in that range | 51% of the way up |
| 3-month return | +5.0% |
| 1-year return | +8.3% |
Five years of financials, as filed
Pulled from Arch Capital Group's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $19.9B | $17.4B | $13.6B | $9.6B | $9.2B |
| Net income | $4.4B | $4.3B | $4.4B | $1.5B | $2.2B |
| Operating cash flow | $6.2B | $6.7B | $5.7B | $3.8B | $3.4B |
| Capital expenditure | $44.0M | $51.0M | $52.0M | $50.0M | $41.0M |
| Total assets | $79.2B | $70.9B | $58.9B | $48.0B | $45.1B |
| Total liabilities | $55.0B | $50.1B | $40.6B | $35.1B | $31.5B |
| Shareholder equity | $24.2B | $20.8B | $18.4B | $12.9B | $13.5B |
| Cash | $993M | $979M | $917M | $855M | $859M |
| Free cash flow | $6.1B | $6.6B | $5.7B | $3.8B | $3.4B |
| Net margin | 22.1% | 24.7% | 32.6% | 15.4% | 23.3% |
| Diluted shares | 376M | 382M | 379M | 378M | 400M |
Share count is down 6.1% over 4 years. Buybacks have been shrinking the pie.
What Arch Capital Group says it does
As used in this report, references to "we," "us," "our," "Arch" or the "Company" refer to the consolidated operations of Arch Capital Group Ltd. ("Arch Capital") and its subsidiaries. All amounts are in millions, except per share amounts, unless otherwise noted. We refer you to Item 1A "Risk Factors" for a discussion of risk factors relating to our business. OUR COMPANY General Arch Capital is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at December 31, 2025 and is part of the S&P 500 index. Arch provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries. While we are positioned to provide a full range of property, casualty and mortgage insurance and reinsurance lines, we focus on writing specialty lines of insurance and reinsurance. For 2025, we wrote $16.5 billion of net premiums and reported net income available to Arch common…
Risk factors ACGL lists in its 10-K
- Risks Relating to Our Industry, Business and Operations
- Risks Relating to Financial Markets and Investment
- Risks Relating to Our Mortgage Operations
- We operate in a highly competitive environment, and we may not be able to compete successfully in our industry
- The insurance and reinsurance industry is highly cyclical, and we may at times experience periods characterized by excess underwriting capacity and unfavorable premium rates
- The effects of inflation, trade and tariff disputes and other economic conditions impact the insurance and reinsurance industry in ways which may negatively impact our business, financial condition and results of operations
- Claims for natural catastrophic events could cause large losses and substantial volatility in our results of operations and could have a material adverse effect on our financial position and results of operations
- Sanctions imposed by the U.S., U.K. and EU on Russia and Russia-related businesses have impacted certain sectors in which we write business
- Certain U.S. policies and actions have created geopolitical risks which are not possible to manage or predict, some of which may result in uncertainty in the global markets
- Our customers and policyholders may also be impacted by regulatory, technological, market or other risks relating to climate change in ways which we cannot predict with certainty and adversely impact our results of operations
- Underwriting risks and reserving for losses are based on probabilities and related modeling, which are subject to inherent uncertainties
- The failure of any of the loss limitation methods we employ could have a material adverse effect on our financial condition or results of operations
- We could be materially adversely affected to the extent that important third parties with whom we do business do not adequately or appropriately manage their risks, commit fraud or otherwise breach obligations owed to us
- Emerging claim and coverage issues may adversely affect our business