ACGLN Arch Capital Group Ltd. - Fundamental Analysis
BEARISH
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ACGLN Stock | Fundamental Analysis & Investment Insights
NASDAQ
Financial Services
Insurance - Diversified
Current Price
Live
$17.77
52W High
$18.96
52W Low
$16.44
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 21, 2026
Market cap
N/A
P/E
3.79
ROE
19.5%
Profit margin
22.1%
Debt/Equity
0.11
Dividend yield
6.41%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
ACGLN's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential distress despite strong profitability metrics. The company trades at a deeply discounted valuation with a P/E of 3.79 and Price/Book of 0.27, but this is offset by a severely deteriorated liquidity profile—current ratio of 0.53 and quick ratio of 0.26—raising red flags for short-term solvency. While earnings growth (38.7% YoY) and high margins are positive, the lack of an Altman Z-Score and weak technical trend (0/100) suggest structural vulnerabilities. The dividend yield of 6.41% appears attractive but may be unsustainable given the weak financial health and lack of cash flow data. Overall, the stock is trading at a deep discount, but the underlying fundamentals raise serious concerns.
Key Strengths
High profit margins (22.07% net, 29.53% operating)
Strong earnings growth (38.70% YoY)
Low debt/equity ratio (0.11) indicating conservative leverage
Attractive valuation with P/E of 3.79 and Price/Book of 0.27
High ROE of 19.54% despite low ROA
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health and potential distress
Extremely low current ratio (0.53) and quick ratio (0.26) suggest liquidity risk
No Altman Z-Score available, but the low liquidity and weak Piotroski score imply distress risk
Technical trend is bearish (0/100), indicating negative momentum
Dividend yield of 6.41% may be unsustainable given weak financial health and lack of cash flow data
AI Fair Value Estimate
Based on comprehensive analysis
$83.08
+367.5% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
51
Moderate
75
60
50
30
40
AI Verdict
cautious
Key drivers: High profitability and low leverage, Severe liquidity concerns, Weak Piotroski F-Score, Lack of technical momentum, High dividend yield with questionable sustainability
Confidence
85%
Value
75/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 3.79 is significantly below sector average of 30.38
- Price/Book of 0.27 indicates deep undervaluation
- Graham Number of $83.08 suggests defensive fair value
Watchpoints
- Intrinsic value estimate of $138.38 is much higher than current price, but growth assumptions may be overly optimistic
- No PEG ratio or forward P/E to validate growth premium
Future
60/100
Ref Growth rates
Positives
- Earnings growth of 38.70% YoY is strong
- Revenue growth of 8.50% YoY is positive
- Q/Q earnings growth of 32.40% shows momentum
Watchpoints
- No forward P/E or PEG ratio to assess growth sustainability
- No analyst coverage to validate growth expectations
Past
50/100
Ref Historical trends
Positives
- 3-year return of +13.9% shows resilience
- 1-year return of +2.4% indicates modest recovery
Watchpoints
- 5-year return of -7.3% reflects long-term underperformance
- Price near 52-week low ($16.44) suggests prolonged weakness
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.11 is very low
- ROE of 19.54% is strong
Watchpoints
- Piotroski F-Score of 4/9 is below threshold for financial health
- Current ratio of 0.53 and quick ratio of 0.26 indicate severe liquidity risk
- No Altman Z-Score available, but low liquidity and weak Piotroski score imply distress risk
Dividend
40/100
Ref Yield, Payout
Positives
- Dividend yield of 6.41% is attractive
- Dividend rate of $1.14 is stable
Watchpoints
- Payout ratio not available, making sustainability uncertain
- High yield may be unsustainable given weak financial health and low cash flow visibility
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$17.77
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ACGLN and closest competitors.
Updated 2026-02-20
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ACGLN
Arch Capital Group Ltd.
Primary
|
-7.3% | +13.9% | +2.4% | +3.9% | +1.3% | +0.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
3.79
Forward P/E
N/A
PEG Ratio
N/A
P/B Ratio
0.27
P/S Ratio
N/A
EV/Revenue
0.31
EV/EBITDA
1.13
Market Cap
N/A
Profitability
Profit margins and return metrics
Profit Margin
22.07%
Operating Margin
29.53%
Gross Margin
37.16%
ROE
19.54%
ROA
4.44%
Growth
Revenue and earnings growth rates
Revenue Growth
+8.5%
Earnings Growth
+38.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+32.4%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.11
Low debt
Current Ratio
0.53
Weak
Quick Ratio
0.26
Poor
Cash/Share
$10.3
Financial Services Sector Comparison
Comparing ACGLN against 208 companies in the Financial Services sector
(6 bullish, 111 neutral, 91 bearish)
P/E Ratio
3.79
This Stock
vs
30.39
Sector Avg
-87.5%
(Discount)
Return on Equity (ROE)
19.54%
This Stock
vs
-7.57%
Sector Avg
-358.0%
(Below Avg)
Profit Margin
22.07%
This Stock
vs
83.86%
Sector Avg
-73.7%
(Weaker)
Debt to Equity
0.11
This Stock
vs
1.51
Sector Avg
-92.5%
(Less Debt)
Revenue Growth
8.5%
This Stock
vs
30.29%
Sector Avg
-71.9%
(Slower)
Current Ratio
0.53
This Stock
vs
3.78
Sector Avg
-86.1%
(Weaker)
Ownership Structure
Institutional and insider holdings breakdown
Ownership Breakdown
Top Institutional Holders
IAT Reinsurance Co Ltd
40,000 shares
• 2025-12-31
PNC Financial Services Group, Inc.
2,007 shares
• 2025-12-31
Gamma Investing LLC
57 shares
• 2025-12-31
Nbc Securities, Inc.
89 shares
• 2025-12-31
Past News Coverage
Recent headlines mentioning ACGLN from our newsroom.
Newest → oldest
No matching news yet.