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Arch Capital Group Ltd. (ACGL) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Arch Capital Group Ltd.

ACGLMarket cap $32BPrice $94.3

CountryBermuda

SectorFinancials

IndustryInsurance

Underwrites insurance, reinsurance, and mortgage insurance across specialty lines most people never think about. Based in Bermuda for tax efficiency, it's built a reputation for disciplined underwriting that lets it dodge the losses that sink less selective rivals.

In Bastion Portfolios?

52W Return+9%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+28%10

Revenue Forecast

Rev CAGR (1y)-21%1

Rev CAGR (3y)-7%1

Rev CAGR (5y)-4%1

Earnings Forecast

EPS Growth Y+1-17%2

EPS Growth Y+2-3%3

EPS Growth Y+3+1%4

Quality

Margins

EBIT Margin28%9

Net Income Margin24%8

Free Cash Flow Margin31%9

Debt

Net Debt/EBITDA0.66

Efficiency

ROE20%8

ROA6%7

Earnings Stability44

GEAR+STRONG78

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)108

P/E Ratio (Forward 3y)108

P/BV1.48

EV Multiples

EV/EBITDA Fwd08

EV/EBIT Fwd08

Yield

Free Cash Flow Yield0.0%10

Dividend Yieldna–

Momentum

Short term

1 month return-1%7

3 month return-8%4

YTD return-2%5

Mid term

Price vs 52wHigh88%8

1 year return+1%5

Long term

3 year return+21%4

5 year return+142%8

Risk Shield

Price Risk

Beta0.39

Volatility21%9

Free Cash Flow

Free Cash Flow Margin31%9

Free Cash Flow Yield0.0%10

Quality

ROCE16%7

Earnings Stability44

Net Debt/EBITDA0.66

02Growth

Is it actually growing, and how fast?

ACGLArch Capital Group

Revenue FY25$19.3B

GROWTH RATING↗

VERY WEAK6 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+28%10

Revenue, next 1Y-21%1

Revenue, next 3Y, CAGR-7%1

Revenue, next 5Y, CAGR-4%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-17%2

EPS growth, FY27E-3%3

EPS growth, FY28E+1%4

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 28%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 94% of companies worldwide.

Revenue is set to shrink 7%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 28%/yr over the last 3 years, but it is set to shrink 7%/yr from here.

Over five years revenue is set to shrink 4%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall along with revenue (EPS about -3%/yr vs revenue -7%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

ACGLArch Capital Group

Total return Current228%

Price return Current228%

MOMENTUM RATING↗

AVERAGE57 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return-8%4

YTD return-2%5

MID & LONG-TERM▾SCORE

% of 52-week high88%8

1-year return+1%5

3-year return+21%4

5-year return+142%8

MOMENTUM ASSESSMENT

STRENGTHS

It's up 1% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%).

WATCH

Average long-term results. Multi-year returns are middling (+21% over three years and +142% over five), roughly average for the market.

Returns sit at the market level over three months (-8%) and so far this year (-2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Arch Capital Group Ltd.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

ACGLArch Capital Group

Revenue FY25$19.3B

GROWTH RATING↗

VERY WEAK6 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+28%10

Revenue, next 1Y-21%1

Revenue, next 3Y, CAGR-7%1

Revenue, next 5Y, CAGR-4%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-17%2

EPS growth, FY27E-3%3

EPS growth, FY28E+1%4

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 28%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 94% of companies worldwide.

Revenue is set to shrink 7%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 28%/yr over the last 3 years, but it is set to shrink 7%/yr from here.

Over five years revenue is set to shrink 4%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall along with revenue (EPS about -3%/yr vs revenue -7%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

ACGLArch Capital Group

Total return Current228%

Price return Current228%

MOMENTUM RATING↗

AVERAGE57 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return-8%4

YTD return-2%5

MID & LONG-TERM▾SCORE

% of 52-week high88%8

1-year return+1%5

3-year return+21%4

5-year return+142%8

MOMENTUM ASSESSMENT

STRENGTHS

It's up 1% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%).

WATCH

Average long-term results. Multi-year returns are middling (+21% over three years and +142% over five), roughly average for the market.

Returns sit at the market level over three months (-8%) and so far this year (-2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Arch Capital Group Ltd.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community