Arch Capital Group Ltd. (ACGL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Travelers Cos., Inc.

Cincinnati Financial Corp.

The Hartford Financial Services Group, Inc.

Progressive Corp.

Reinsurance Group of America, Inc.

Aflac, Inc.

American International Group, Inc.

Arch Capital Group Ltd.

CNA Financial Corp.

MetLife, Inc.

Unum Group

Why is Arch Capital Group Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.48%

Healthy long term growth as Net Sales has grown by an annual rate of 18.31%

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at USD 6,100 MM
INTEREST COVERAGE RATIO(Q) Lowest at 68.18
DEBT-EQUITY RATIO (HY) Highest at 9.49 %

With ROE of 18.17%, it has a very attractive valuation with a 2.13 Price to Book Value

Over the past year, while the stock has generated a return of 10.83%, its profits have risen by 2% ; the PEG ratio of the company is 2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.68% over the previous quarter.

Underperformed the market in the last 1 year

The stock has generated a return of 10.83% in the last 1 year, much lower than market (S&P 500) returns of 22.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Arch Capital Group Ltd. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Arch Capital Group Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arch Capital Group Ltd.

10.83%

-0.10

21.52%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.31%

EBIT Growth (5y)

-14.04%

EBIT to Interest (avg)

-0.02

Debt to EBITDA (avg)

28.01

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.69

Tax Ratio

11.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

96.32%

ROCE (avg)

0.18%

ROE (avg)

17.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.13

EV to EBIT

EV to EBITDA

254.51

EV to Capital Employed

2.25

EV to Sales

2.53

PEG Ratio

2.00

Dividend Yield

ROCE (Latest)

ROE (Latest)

18.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 6,100 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 68.18

DEBT-EQUITY RATIO (HY)

Highest at 9.49 %

INTEREST(Q)

Highest at USD 44 MM

Here's what is working for Arch Capital Group Ltd.

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Arch Capital Group Ltd.

Operating Cash Flow

Lowest at USD 6,100 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 44 MM has Grown at 18.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 68.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 44 MM

in the last five periods and Increased by 18.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 9.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio