📊 ACGLN Key Takeaways
Is Arch Capital Group Ltd.. (ACGLN) a Good Investment?
Arch Capital demonstrates exceptional financial health with strong profitability (22.1% net margin), robust cash generation ($6.1B FCF, 30.7% FCF margin), and impressive returns on equity (18.2%). Revenue growth of 14.3% YoY combined with improving earnings (+0.9% net income, +3.7% EPS) reflects quality underwriting and operational excellence in the insurance sector.
Arch Capital Group shows strong fundamental quality, with double-digit revenue growth, high operating and net margins, and excellent free cash flow conversion. Financial health appears solid given its large equity base, minimal reported leverage, and strong interest coverage, although the modest net income growth versus revenue growth suggests some margin or loss-cost pressure worth monitoring.
Why Buy Arch Capital Group Ltd.. Stock? ACGLN Key Strengths
- Exceptional net profit margin of 22.1% significantly above industry average
- Outstanding free cash flow generation of $6.1B with 30.7% FCF margin enabling capital deployment
- Strong ROE of 18.2% and ROA of 5.6% demonstrate superior capital efficiency
- Solid balance sheet with $24.2B equity and zero long-term debt (0.00x debt/equity ratio)
- Revenue growth acceleration of 14.3% YoY indicates market expansion or premium rate increases
- High interest coverage of 34.9x indicates exceptional debt servicing capacity
- Operating margin of 25.9% reflects disciplined underwriting and operational efficiency
- Strong profitability with 25.9% operating margin, 22.1% net margin, and 18.2% ROE
- High-quality cash generation with $6.13B of free cash flow and a 30.7% FCF margin
- Sound balance sheet supported by $24.21B of equity, low reported debt, and 34.9x interest coverage
ACGLN Stock Risks: Arch Capital Group Ltd.. Investment Risks
- Insurance underwriting cycle exposure creates earnings volatility tied to loss ratios and catastrophe events
- Significant invested assets ($79.2B total assets) creates interest rate and credit spread sensitivity
- 19 Form 4 insider filings warrant monitoring for potential concerns about insider confidence
- Limited current/quick ratio visibility may indicate concentrated liquidity structure typical of insurers
- Net income growth (0.9% YoY) lags revenue growth (14.3%), suggesting potential claims inflation or reduced underwriting margins
- Net income growth of just 0.9% trails revenue growth, which may indicate underwriting or expense pressure
- Insurance results can be volatile due to catastrophe losses, reserve development, and pricing cycles
- Cash on hand is modest relative to total assets, increasing reliance on portfolio liquidity and disciplined capital management
Key Metrics to Watch
- Combined Ratio (loss and loss adjustment expense ratio plus expense ratio) - critical for underwriting profitability
- Gross Premium Written and Premium Earned trends by segment
- Loss ratio and expense ratio trends - early warning indicators of underwriting discipline deterioration
- Investment portfolio performance and unrealized gains/losses
- Catastrophic loss exposure and claims reserves adequacy
- Combined ratio or underwriting margin trend
- Net income and ROE trend versus revenue growth
Arch Capital Group Ltd.. (ACGLN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 30.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACGLN Profit Margin, ROE & Profitability Analysis
ACGLN vs Finance Sector: How Arch Capital Group Ltd.. Compares
How Arch Capital Group Ltd.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arch Capital Group Ltd.. Stock Overvalued? ACGLN Valuation Analysis 2026
Based on fundamental analysis, Arch Capital Group Ltd.. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arch Capital Group Ltd.. Balance Sheet: ACGLN Debt, Cash & Liquidity
ACGLN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arch Capital Group Ltd..'s revenue has grown significantly by 115% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.62 reflects profitable operations.
ACGLN Revenue Growth, EPS Growth & YoY Performance
ACGLN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.7B | $988.0M | $2.56 |
| Q2 2025 | $4.2B | $1.2B | $3.23 |
| Q1 2025 | $3.9B | $574.0M | $1.48 |
| Q2 2024 | $3.2B | $671.0M | $1.75 |
| Q1 2024 | $3.2B | $715.0M | $1.87 |
| Q3 2023 | $2.4B | $17.0M | $0.02 |
| Q2 2023 | $2.2B | $404.0M | $1.04 |
| Q1 2023 | $1.9B | $196.0M | $0.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arch Capital Group Ltd.. Dividends, Buybacks & Capital Allocation
ACGLN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arch Capital Group Ltd.. (CIK: 0000947484)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACGLN
What is the AI rating for ACGLN?
Arch Capital Group Ltd.. (ACGLN) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACGLN's key strengths?
Claude: Exceptional net profit margin of 22.1% significantly above industry average. Outstanding free cash flow generation of $6.1B with 30.7% FCF margin enabling capital deployment. ChatGPT: Strong profitability with 25.9% operating margin, 22.1% net margin, and 18.2% ROE. High-quality cash generation with $6.13B of free cash flow and a 30.7% FCF margin.
What are the risks of investing in ACGLN?
Claude: Insurance underwriting cycle exposure creates earnings volatility tied to loss ratios and catastrophe events. Significant invested assets ($79.2B total assets) creates interest rate and credit spread sensitivity. ChatGPT: Net income growth of just 0.9% trails revenue growth, which may indicate underwriting or expense pressure. Insurance results can be volatile due to catastrophe losses, reserve development, and pricing cycles.
What is ACGLN's revenue and growth?
Arch Capital Group Ltd.. reported revenue of $19.9B.
Does ACGLN pay dividends?
Arch Capital Group Ltd.. does not currently pay dividends.
Where can I find ACGLN SEC filings?
Official SEC filings for Arch Capital Group Ltd.. (CIK: 0000947484) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACGLN's EPS?
Arch Capital Group Ltd.. has a diluted EPS of $11.60.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACGLN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arch Capital Group Ltd.. has a BUY rating with 86% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ACGLN stock overvalued or undervalued?
Valuation metrics for ACGLN: ROE of 18.2% (sector avg: 12%), net margin of 22.1% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy ACGLN stock in 2026?
Our dual AI analysis gives Arch Capital Group Ltd.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACGLN's free cash flow?
Arch Capital Group Ltd..'s operating cash flow is $6.2B, with capital expenditures of $44.0M. FCF margin is 30.7%.
How does ACGLN compare to other Finance stocks?
Vs Finance sector averages: Net margin 22.1% (avg: 25%), ROE 18.2% (avg: 12%), current ratio N/A (avg: 1.2).