Arch Capital Group (ACGL) AI Stock Analysis

• Market Cap: $32.65B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.38
• Revenue Growth: 16.68%
• EPS Growth: -28.54%
• Country: US
• Employees: 7,200
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 2.77
• Shares Outstanding: 373,220,300
• 10 Day Avg. Volume: 2,438,355
• 30 Day Avg. Volume: 2,210,460
• PEG Ratio: -2.03
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 5.19
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 8.50
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $106.18
• Price Target Upside: 21.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $94.00 ▲(7.37% Upside)

Arch Capital Group's overall stock score is driven by strong financial performance and positive earnings call highlights, including record earnings and robust investment income. However, bearish technical indicators and competitive pressures in the reinsurance segment slightly offset these strengths. The company's attractive valuation and strategic focus on capital return further support the score.

Positive Factors

Strong Financial Performance

The company's robust revenue growth and efficient operations indicate a strong financial foundation, supporting long-term stability and growth potential.

Record Earnings

Record earnings reflect the company's ability to generate substantial profits, which can be reinvested into the business or returned to shareholders, enhancing future growth prospects.

Strong Return on Equity

A strong return on equity indicates effective use of shareholder capital, suggesting efficient management and a robust business model that can sustain long-term growth.

Negative Factors

Reinsurance Premium Decline

Declining premiums in the reinsurance segment could signal challenges in maintaining market share and pricing power, potentially impacting future revenue growth.

Market Competition Increasing

Rising competition and weaker pricing conditions may pressure margins and limit growth opportunities, challenging the company's ability to maintain its competitive edge.

Impact of Remediation Efforts

Remediation efforts leading to non-renewals could reduce premium income, affecting revenue streams and potentially hindering growth in the insurance segment.

Arch Capital Group Business Overview & Revenue Model

Company Description

Arch Capital Group Ltd. is a global provider of insurance, reinsurance, and mortgage insurance, operating primarily in the property and casualty insurance sectors. Founded in 2001 and headquartered in Hamilton, Bermuda, Arch Capital focuses on delivering innovative risk management solutions to its clients, including commercial and personal lines insurance products. The company serves a diverse range of industries and geographical markets, leveraging its underwriting expertise and strong capital position.

How the Company Makes Money

Arch Capital Group generates revenue through several key channels, primarily by underwriting insurance and reinsurance policies. The company earns premiums from clients in exchange for coverage against various risks, including property damage, liability, and other exposures. Additionally, Arch's mortgage insurance segment provides coverage to lenders against borrower defaults, generating further premium income. The company also invests the capital it holds, earning investment income from interest, dividends, and capital gains on its investment portfolio. Strategic partnerships with brokers and agents enhance its distribution capabilities, while its strong market presence and diversified risk portfolio contribute to its overall profitability. Arch Capital's ability to accurately assess risk and manage claims effectively is critical to maintaining its earnings and financial stability.

Arch Capital Group Financial Statement Overview

Summary

Arch Capital Group shows strong financial performance with robust revenue growth and efficient operational management. However, pressures on net profit margins and a decrease in free cash flow growth slightly temper the outlook. The company's low leverage and strong return on equity provide a solid foundation for future growth.

Income Statement

Arch Capital Group demonstrates strong revenue growth with a 6.35% increase in TTM, supported by a solid gross profit margin of 69.07%. However, the net profit margin has decreased from 25.47% in the previous year to 19.38% in TTM, indicating some pressure on profitability. The EBIT margin is stable at 21.06%, reflecting efficient operational management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.12, indicating prudent financial leverage. The return on equity is strong at 17.03%, although it has decreased from 20.71% in the previous year, suggesting a slight decline in profitability. The equity ratio remains healthy, supporting financial stability.

Cash Flow

Arch Capital Group's cash flow performance shows a decrease in free cash flow growth by 6.06% in TTM, which could be a concern. However, the free cash flow to net income ratio remains high at 99.25%, indicating effective cash generation relative to earnings. The operating cash flow to net income ratio is not available, which limits a full assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.05B	16.93B	13.29B	9.66B	8.92B	8.29B
Gross Profit	4.43B	5.94B	4.74B	2.89B	3.04B	2.60B
EBITDA	4.74B	4.85B	3.61B	1.72B	2.32B	1.77B
Net Income	4.10B	4.31B	4.44B	1.48B	2.16B	1.41B
Balance Sheet
Total Assets	67.04B	70.91B	58.91B	47.99B	45.10B	43.28B
Cash, Cash Equivalents and Short-Term Investments	0.00	979.00M	8.03B	21.87B	22.40B	21.55B
Total Debt	2.73B	2.73B	2.73B	2.73B	2.72B	3.02B
Total Liabilities	43.32B	50.09B	40.55B	35.07B	31.55B	29.29B
Stockholders Equity	23.72B	20.82B	18.35B	12.91B	13.55B	13.11B
Cash Flow
Free Cash Flow	6.29B	6.62B	5.70B	3.76B	3.39B	2.85B
Operating Cash Flow	6.34B	6.67B	5.75B	3.82B	3.43B	2.89B
Investing Cash Flow	-3.20B	-4.46B	-5.47B	-3.10B	-2.14B	-3.04B
Financing Cash Flow	-3.00B	-1.93B	-69.00M	-706.00M	-1.23B	521.28M

Arch Capital Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACGL, the sentiment is Neutral. The current price of 87.55 is below the 20-day moving average (MA) of 87.73, below the 50-day MA of 89.42, and below the 200-day MA of 90.94, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACGL.

Arch Capital Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORI	77 Outperform	$10.07B	12.24	12.96%	7.70%	7.08%	-4.36%
HIG	74 Outperform	$35.65B	10.45	20.07%	1.66%	7.11%	22.52%
ACGL	73 Outperform	$32.65B	8.20	17.81%	―	16.68%	-28.54%
PFG	73 Outperform	$18.03B	11.95	13.74%	3.67%	12.33%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	59 Neutral	$44.71B	14.47	7.68%	2.11%	-23.02%	52.43%
EQH	54 Neutral	$14.64B	―	-41.33%	2.26%	4.80%	-155.12%

Arch Capital Group Corporate Events

Arch Capital Reports Strong Q3 2025 Financial Results

Arch Capital Group Ltd., a Bermuda-based company listed on NASDAQ, operates in the insurance, reinsurance, and mortgage insurance sectors globally through its subsidiaries.

Arch Capital Group Expands Share Repurchase Program

On September 4, 2025, Arch Capital Group Ltd. announced an increase of $2.0 billion to its existing share repurchase program, bringing the total available for repurchases to approximately $2.3 billion. The decision reflects the company’s strategic approach to manage its capital and enhance shareholder value, with repurchase timing and amounts influenced by market conditions and regulatory considerations.

The most recent analyst rating on (ACGL) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Arch Capital Group stock, see the ACGL Stock Forecast page.

Arch Capital Reports Steady Q2 2025 Earnings

Arch Capital Group Ltd., a prominent player in the insurance and reinsurance industry, provides a range of insurance, reinsurance, and mortgage insurance services globally through its subsidiaries. The company is headquartered in Bermuda and is a constituent of the S&P 500 index.

Arch Capital’s Earnings Call Highlights Robust Growth

Arch Capital’s recent earnings call showcased a robust financial performance, marked by significant growth in book value and operating income across various segments. Despite facing competitive pressures in certain lines and challenges in mortgage originations, the overall sentiment was positive, driven by strong growth and performance.