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Arch Capital Group Ltd.

ACGL

Fire, Marine & Casualty Insurance

Mkt Cap

$33.18B

PE

7.54

Debt

-

Cash

$1.498B

EV

-

FCF

$5.697B

Market Cap

$33.18B

P/E Ratio

7.54

Debt

-

Cash

$1.498B

EV

-

FCF

$5.697B
Charts data: {"Earnings":[{"time":"2014-12-30","value":812417000},{"time":"2015-12-30","value":515800000},{"time":"2016-12-30","value":664668000},{"time":"2017-12-30","value":566502000},{"time":"2018-12-30","value":713616000},{"time":"2019-12-30","value":1594707000},{"time":"2020-12-30","value":1363909000},{"time":"2021-12-30","value":2093405000},{"time":"2022-12-30","value":1436197000},{"time":"2023-12-30","value":4403000000}],"Sales":[{"time":"2014-12-30","value":3988873000},{"time":"2015-12-30","value":3936590000},{"time":"2016-12-30","value":4463556000},{"time":"2017-12-30","value":5627375000},{"time":"2018-12-30","value":5450568000},{"time":"2019-12-30","value":6928200000},{"time":"2020-12-30","value":8525275000},{"time":"2021-12-30","value":9249980000},{"time":"2022-12-30","value":9614808000},{"time":"2023-12-30","value":13634000000}],"Net Margins":[{"time":"2014-12-30","value":0.20367081127927614},{"time":"2015-12-30","value":0.13102710721716002},{"time":"2016-12-30","value":0.14890997222842056},{"time":"2017-12-30","value":0.10066896199382483},{"time":"2018-12-30","value":0.13092507056145342},{"time":"2019-12-30","value":0.2301762362518403},{"time":"2020-12-30","value":0.15998416473368895},{"time":"2021-12-30","value":0.2263145433827965},{"time":"2022-12-30","value":0.14937344562678734},{"time":"2023-12-30","value":0.3229426433915212}],"Assets":[{"time":"2014-12-30","value":22009543000},{"time":"2015-12-30","value":23177270000},{"time":"2016-12-30","value":29372109000},{"time":"2017-12-30","value":32051658000},{"time":"2018-12-30","value":32218329000},{"time":"2019-12-30","value":37885361000},{"time":"2020-12-30","value":43282297000},{"time":"2021-12-30","value":45100945000},{"time":"2022-12-30","value":47990507000},{"time":"2023-12-30","value":58906000000}],"Stockholders Equity":[{"time":"2014-12-30","value":6899134000},{"time":"2015-12-30","value":6943712000},{"time":"2016-12-30","value":9105572000},{"time":"2017-12-30","value":10040013000},{"time":"2018-12-30","value":10231387000},{"time":"2019-12-30","value":12260148000},{"time":"2020-12-30","value":13928893000},{"time":"2021-12-30","value":13545896000},{"time":"2022-12-30","value":12910073000},{"time":"2023-12-30","value":18353000000}],"ROE":[{"time":"2014-12-30","value":0.11775637348107748},{"time":"2015-12-30","value":0.07428303478024434},{"time":"2016-12-30","value":0.07299574370506323},{"time":"2017-12-30","value":0.05642442893251234},{"time":"2018-12-30","value":0.06974772824056015},{"time":"2019-12-30","value":0.13007241021886523},{"time":"2020-12-30","value":0.09791941111185218},{"time":"2021-12-30","value":0.15454164124691347},{"time":"2022-12-30","value":0.11124623385165987},{"time":"2023-12-30","value":0.23990628235165912}],"ROA":[{"time":"2014-12-30","value":0.03835822488454213},{"time":"2015-12-30","value":0.024471993466012174},{"time":"2016-12-30","value":0.029128041163132005},{"time":"2017-12-30","value":0.023626765267494118},{"time":"2018-12-30","value":0.026127115406885316},{"time":"2019-12-30","value":0.04880803432228084},{"time":"2020-12-30","value":0.036447903862403604},{"time":"2021-12-30","value":0.05250537433306553},{"time":"2022-12-30","value":0.03255610531474485},{"time":"2023-12-30","value":0.06060503174549282}]}

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 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; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. Arch Capital Group Ltd. founded in 1995 and is based in Pembroke, Bermuda.

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    PRA

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$5.697B$6.978B$8.411B$9.976B$11.64B$13.35B$15.05B$16.69B$18.17B$19.43B$20.4B$204B
DCF$6.068B$6.36B$6.559B$6.654B$6.637B$6.509B$6.273B$5.939B$5.523B$5.043B$50.43B
Value$112B

In the chart Earnings are multiplied by this value.

Earnings Growth 23%
Earnings Stability 77%


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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin13%15%10%13%23%16%23%15%32%32%
ROA2.4%2.9%2.4%2.6%4.9%3.6%5.3%3.3%6.1%6.1%
ROE7.4%7.3%5.6%7%13%9.8%15%11%24%24%

What is the average Net Margin?

The average Net Margin over the past 5 years is +20.33%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.24%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.28%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.4%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.39%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.43%.


Safety & Stabiliy

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF----------
Debt Equity----------
MIN
Graham Stability--85%100%100%100%100%85%100%85%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.85.


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.

Years12-201612-201812-202012-2022Trend
Revenue17%20%17%42%2.3%
Net Income31%44%48%210%15%
Stockholders Equity11%12%9.6%42%0.74%
FCF22%30%26%51%3.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +20.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +43.9%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +14.79%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.4%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.74%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +30.08%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +3.54%.