ACGL

Arch Capital Group

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Insurance - Diversified

Exchange

Nasdaq

County of HQ

Bermuda

Next Earnings Date

04/28/26

Business Summary

Arch Capital Group operates as a diversified insurance and reinsurance platform, generating revenue by underwriting risk across multiple lines and geographies. Its core cash engine is the spread between premiums collected and claims paid, with disciplined underwriting reflected in its 18.00% operating margin. Scale and risk diversification allow it to smooth volatility across business segments, while investment income on float enhances overall returns. The moat lies in underwriting expertise, capital allocation discipline, and long-standing broker and client relationships that create repeat deal flow and pricing power in specialty markets.

VALUATION

P/E

8.3

Market Cap ($M USD)

$34,191

Forward P/E

9.5

PEG

0.7

PRICE TO SALES

1.9

PRICE TO BOOK

1.5

EV / EBITDA

6.9

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$11.83

Next Year EPS Growth Estimate

$10.09

Next Year Revenue Growth Estimate

4.00%

Return on Equity (ROE)

18.00%

Operating Margin

-

Debt-to-Equity

0.1

Piotroski F-Score

7

Altman Z-Score

-

Return on Invested Capital (ROIC)

16.70%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 8.3x earnings and 9.5x forward earnings, ACGL trades at a clear discount to what its 16.70% ROIC and 18.00% operating margin would normally command, suggesting the market is not pricing it as a high-quality compounder. The forward PEG of 0.7 reinforces the idea that growth is being undervalued relative to price. However, Return on Equity of just 4.00% tempers the enthusiasm, implying capital efficiency at the equity level is weaker than ROIC suggests. With no Altman Z-Score provided, balance sheet distress risk cannot be formally assessed here, but on pure earnings multiple and growth alignment, the stock screens as statistically cheap rather than expensive.

AI Exposure / Tech Reliance

As a diversified insurance business within Financial Services, ACGL operates in a data-driven industry where underwriting, risk modeling, and claims analytics are increasingly shaped by AI. Firms that integrate predictive analytics into pricing and risk selection can expand underwriting margins, and ACGL’s 18.00% operating margin suggests operational discipline that could benefit from further tech leverage. The industry’s modernization tailwinds favor carriers that can continuously refine risk models and expense ratios.

The Bull Case

A GARP or deep value investor would focus on the alignment between valuation and capital efficiency. A 16.70% ROIC against a 9.5 forward P/E is the kind of spread that drives long-term compounding, particularly when paired with a Piotroski F-Score of 7, which signals fundamentally sound financial health across profitability, leverage, and operating metrics. The 18.00% operating margin demonstrates underwriting and cost discipline in a sector where combined ratio control is everything. Add a PEG of 0.7 and estimated EPS of $11.83 next year versus current EPS of 6.9, and you have a setup where earnings growth is not fully capitalized into the share price, making it statistically attractive for institutional capital hunting mispriced quality.

The Bear Case

The weak point is clear: Return on Equity sits at just 4.00%, which is low for a financial services firm and raises questions about capital deployment efficiency. The absence of data for Debt/Equity, Short % of Float, Altman Z-Score, and Current Ratio limits visibility into balance sheet risk and liquidity resilience. A Forward P/E of 9.5 is actually higher than the trailing 8.3, implying the market expects earnings normalization or slower growth relative to the current base. With a minimal 0.1 yield, no meaningful dividend history, and no payout ratio provided, shareholders are entirely dependent on capital appreciation, increasing sensitivity to underwriting cycles and macro shocks.

Market Sentiment & Smart Money

Short Interest %

1.70%

Analyst Consensus

2.26

Average Analyst Price Target

$109.30

Institutional Ownership %

94.40%

1-Year Beta

0.13

Insider Buying % (6 Mo)

2.60%%

Distance to 52-Week High

92.80%%

Distance to 52-Week Low

116.40%%