ACGLO Arch Capital Group Ltd. - Fundamental Analysis
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ACGLO Stock | Fundamental Analysis & Investment Insights
NASDAQ
Financial Services
Insurance - Diversified
Current Price
Live
$21.27
52W High
$22.2
52W Low
$19.99
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 21, 2026
Market cap
$12.4B
P/E
4.53
ROE
19.5%
Profit margin
22.1%
Debt/Equity
0.11
Dividend yield
6.43%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
ACGLO's Piotroski F-Score of 4/9 indicates a borderline stable financial health, falling short of strong fundamentals. The absence of an Altman Z-Score raises concern about default risk, particularly given the company's low current and quick ratios (0.53 and 0.26), which suggest liquidity strain. Despite this, the stock trades at a deeply undervalued P/E of 4.53 and Price/Book of 0.33, well below sector averages, and the Graham Number ($83.08) and intrinsic value ($138.38) imply significant upside potential. However, the bearish technical trend (0/100) and lack of analyst coverage limit conviction. The high dividend yield (6.43%) is attractive but may reflect market skepticism about sustainability.
Key Strengths
Extremely low valuation metrics: P/E of 4.53 and Price/Book of 0.33, significantly below sector averages
Strong profitability: 22.07% profit margin and 29.53% operating margin, indicating efficient operations
High earnings growth: 38.70% YoY, outpacing revenue growth and signaling strong top-line execution
Low debt-to-equity ratio of 0.11, indicating conservative capital structure and low financial leverage
High intrinsic value estimate ($138.38) relative to current price ($21.27), suggesting substantial undervaluation
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health, with only minimal positive signals across financial quality metrics
Liquidity ratios are critically low: current ratio of 0.53 and quick ratio of 0.26, suggesting potential short-term solvency concerns
No Altman Z-Score available, which is a major red flag for distress risk, especially in a cyclical sector like insurance
Bearish technical trend (0/100) and lack of analyst coverage reduce market confidence and momentum
Dividend payout ratio is not available, and a 6.43% yield on a low-growth, high-risk stock may not be sustainable
AI Fair Value Estimate
Based on comprehensive analysis
$138.38
+550.6% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
64
Strong
88
75
60
45
50
AI Verdict
neutral
Key drivers: Deep undervaluation based on Graham and intrinsic value models, Strong earnings growth and profitability, Weak liquidity and low Piotroski F-Score, Absence of Altman Z-Score raises distress risk, Bearish technicals and lack of analyst coverage
Confidence
78%
Value
88/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 4.53 is far below sector average of 30.38
- Price/Book of 0.33 indicates deep discount to book value
- Graham Number ($83.08) and intrinsic value ($138.38) are significantly above current price
- Stock trades at a 75% discount to intrinsic value
Watchpoints
- No PEG ratio available, limiting growth-adjusted valuation analysis
- High dividend yield may be unsustainable given financial health concerns
Future
75/100
Ref Growth rates
Positives
- 38.70% YoY earnings growth is robust and above sector average
- 8.50% revenue growth is solid for a mature insurance firm
- Q/Q earnings growth of 32.40% suggests momentum in profitability
Watchpoints
- Forward P/E and PEG are unavailable, limiting forward-looking valuation
- No analyst target prices or consensus, reducing visibility into future expectations
Past
60/100
Ref Historical trends
Positives
- 5-year return of +10.5% and 3-year return of +14.5% show long-term resilience
- 1-year return of +4.6% outperforms the broader market in recent periods
Watchpoints
- Recent 6-month return of +1.7% shows stagnation despite strong fundamentals
- Price has been range-bound between $19.99 and $22.20 for over a year
Health
45/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.11 is very low, indicating conservative leverage
- ROE of 19.54% is strong and above sector average
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial quality and stability
- Current ratio of 0.53 and quick ratio of 0.26 suggest liquidity stress
- No Altman Z-Score available, which is a critical gap for distress risk assessment
Dividend
50/100
Ref Yield, Payout
Positives
- 6.43% dividend yield is attractive for income investors
- High yield may reflect undervaluation and market skepticism
Watchpoints
- Payout ratio is not available, raising sustainability concerns
- Dividend strength score of 40/100 suggests moderate reliability
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$21.27
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ACGLO and closest competitors.
Updated 2026-02-20
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ACGLO
Arch Capital Group Ltd.
Primary
|
+10.5% | +14.5% | +4.6% | +1.7% | +1.2% | +1.3% |
|
ALLY
Ally Financial Inc.
Peer
|
+22.5% | +45.9% | +5.9% | +8.3% | -11.2% | -5.7% |
|
BNT
Brookfield Wealth Solutions Ltd.
Peer
|
+17.8% | +95.9% | +19.2% | +4.4% | +0.8% | -0.6% |
|
AIZ
Assurant, Inc.
Peer
|
+91.8% | +90.7% | +14.3% | +26.2% | -3.5% | -0.3% |
|
AEG
Aegon Ltd.
Peer
|
+139.0% | +64.7% | +22.4% | +6.0% | +0.4% | +0.8% |
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
4.53
Forward P/E
N/A
PEG Ratio
N/A
P/B Ratio
0.33
P/S Ratio
0.62
EV/Revenue
0.37
EV/EBITDA
1.35
Market Cap
$12.4B
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 ACGLO against 208 companies in the Financial Services sector
(6 bullish, 111 neutral, 91 bearish)
P/E Ratio
4.53
This Stock
vs
30.39
Sector Avg
-85.1%
(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)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ACGLO
Arch Capital Group Ltd.
|
NEUTRAL | $12.4B | 4.53 | 19.5% | 22.1% | $21.27 | |
|
ALLY
Ally Financial Inc.
|
NEUTRAL | $12.68B | 17.72 | 5.8% | 11.6% | $41.11 | |
|
BNT
Brookfield Wealth Solutions Ltd.
|
NEUTRAL | $12.9B | 11.41 | 9.5% | 9.2% | $47.03 | |
|
AIZ
Assurant, Inc.
|
NEUTRAL | $11.78B | 14.47 | 15.4% | 6.8% | $233.39 | |
|
AEG
Aegon Ltd.
|
BEARISH | $11.74B | 8.47 | 15.0% | 10.1% | $7.71 |
Past News Coverage
Recent headlines mentioning ACGLO from our newsroom.
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No matching news yet.