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ACGL

ACGL

Financial Services · Insurance - Diversified

$93.08+1.72%
Mkt Cap: $32.52B

Performance

ACGL (ACGL) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

ACGL (ACGL) operates in the Insurance - Diversified space within the Financial Services sector. With a market cap of $32.5B, it qualifies as a mid-cap company. Revenue has been contracting year-over-year, a headwind that investors will watch closely in upcoming earnings.

Bull Case5
  • Low P/E of 7.2× suggests the stock may be undervalued relative to earnings
  • Earnings grew 95% YoY — bottom-line is expanding fast
  • Exceptional profit margin of 24.6% — the business retains a large share of each dollar earned
  • ROE of 21.3% shows management efficiently converts equity into profit
  • Low beta of 0.31 — less volatile than the market, suitable for conservative portfolios
Bear Case3
  • Revenue declined 3% YoY — warning sign for business momentum
  • High debt-to-equity of 11.28× increases financial risk, especially with elevated interest rates
  • Current ratio below 1 (0.57×) — short-term liabilities exceed current assets

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

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AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

5Y Avg Annual

$1.0000

Last Payment

$5.0000

Ex-Date

11/18/2024

Annual dividends paid per share

2024
Ex-DatePaymentAmountEst. DY
Latest11/18/2024
12/04/2024$5.000021.49%

Magic Number

Shares needed to self-fund your next purchase

$93.08

Price

÷

$5.0000

Last div. (quarterly)

=

19

shares

Own 19 ACGL shares ($1,768.43) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$1,768.43

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 28, 2026

42

days

EPS (TTM)

$13.00

P/E (TTM)

7.2

Fwd P/E

9.4

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$32.52B
P/E Ratio7.16
Forward P/E9.41
P/B Ratio
PEG Ratio1.05
EPS (TTM)$13.00

Trading

Open
Day High
Day Low
52W High$103.39
52W Low$82.45
Volume
Avg Volume (3M)2,284,084
Beta0.31

Dividends

Dividend Yield
Annual Rate
Ex-Div Date2024-11-18
Payout Ratio0.00%

Profitability

Profit Margin24.64%
Operating Margin25.28%
ROE21.31%
ROA4.57%
Revenue Growth-3.30%
Earnings Growth94.60%

Balance Sheet

Total Revenue$19.78B
Total Debt$2.73B
Debt / Equity11.28
Current Ratio0.57
Free Cash Flow$5.28B

Fair Value Estimates

Current price: $93.08

Graham Number

√(22.5 × EPS × Book Value)

$139.42

+49.8% upside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$83.33

-10.5% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

5/10

56% score

Pays dividends

2Y hist.

2+ years of dividend history

Dividend consistency (5Y+)

2 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

21.3%

Return on equity — measures how efficiently capital is used

Positive profit margin

24.6%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

-3.3%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+94.6%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

11.28×

Low financial leverage reduces risk of distress

Current ratio above 1

0.57×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$213M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Financial Services

About ACGL

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; and casualty insurance. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 and is headquartered in Pembroke, Bermuda.

Sector

Financial Services

Industry

Insurance - Diversified

Location

Pembroke, Bermuda

Employees

8,000