Arch Capital Group Ltd.

Finance
Property-Casualty Insurers
www.archgroup.com

Earnings Score
Moat Score

Market Cap $34.57B
PE 8
Debt -
Cash $1.76B
EV -
FCF $6.62B

Earnings

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Sales & Net Margins

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Earnings	$4.27B
EBIT	$4.67B
ROE	21%
ROA	7%
FCF	$6.62B
Equity	$20.82B
Growth Stability	85%
PE	8.09
PEG	0.22
PB	1.66
P/FCF	5.22
P/S	1.98
Price/Cash	0.05
Net Margins	24%
Op. Margins	27%
Earnings CAGR	30%
Sales Growth YoY	14%
Sales Growth QoQ	-4%
Sales CAGR	17%
FCF CAGR	25%
Equity CAGR	11%
Earnings Stability	0.84

Earnings Growth YoY	-60%
Earnings Growth QoQ	-5%
Earnings CAGR 5Y	38%
Sales CAGR 5Y	19%
FCF CAGR 5Y	25%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	33%
Sales CAGR 3Y	33%
FCF CAGR 3Y	37%
Equity CAGR 3Y	27%
Market Cap	$34.57B
Revenue	$17.44B
Assets	$70.91B
Cash	$1.76B
Shares Outstanding	372.45M
Earnings Score	94%
Moat Score	90%
Shares Growth 3y	0%
Equity Growth QoQ	-7%
Equity Growth YoY	13%

Assets & ROA

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Stockholders Equity & ROE

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Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and South Africa. The business operates through three segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients worldwide across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.

SEC Filings

Direct access to Arch Capital Group Ltd. (ACGL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Arch Capital Group Ltd. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Arch Capital Group Ltd. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 30%

Stability 84%

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Arch Capital Group Ltd. Discounted Cash Flow

Fully customizable DCF calculator online for Arch Capital Group Ltd..

Years

Calculation mode

= $390B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.6B	$8.3B	$10B	$13B	$16B	$20B	$26B	$32B	$40B	$51B	$63B	$634B
DCF		$7.5B	$8.6B	$9.8B	$11B	$13B	$14B	$17B	$19B	$21B	$24B	$244B
Value	$390B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	13%	15%	10%	13%	23%	16%	23%	15%	32%	24%	24%
ROA	-	3%	2%	3%	5%	4%	5%	3%	6%	7%	7%
ROE	-	7%	6%	7%	13%	10%	15%	11%	24%	21%	21%

Good Net Margins (24.5%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	85%	100%	100%	85%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (85%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	13%	26%	-3%	27%	23%	9%	4%	42%	28%	19%
Earnings YoY growth	-	29%	-15%	26%	123%	-14%	53%	-31%	207%	-3%	38%
Equity YoY growth	-	31%	10%	2%	20%	14%	-3%	-5%	42%	13%	11%
FCF YoY growth	-	41%	-21%	40%	31%	42%	19%	11%	51%	16%	25%