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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.48
ACGL's Cash to Debt is ranked higher than
61% of the 190 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.30 vs. ACGL: 0.48 )
ACGL' s 10-Year Cash to Debt Range
Min: 0.28   Max: No Debt
Current: 0.48

Equity to Asset 0.29
ACGL's Equity to Asset is ranked higher than
79% of the 189 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.24 vs. ACGL: 0.29 )
ACGL' s 10-Year Equity to Asset Range
Min: 0.22   Max: 0.97
Current: 0.29

0.22
0.97
Interest Coverage 27.44
ACGL's Interest Coverage is ranked higher than
73% of the 161 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 20.94 vs. ACGL: 27.44 )
ACGL' s 10-Year Interest Coverage Range
Min: 12.77   Max: 9999.99
Current: 27.44

12.77
9999.99
F-Score: 5
Z-Score: 1.06
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 21.06
ACGL's Operating margin (%) is ranked higher than
91% of the 187 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.91 vs. ACGL: 21.06 )
ACGL' s 10-Year Operating margin (%) Range
Min: -14.98   Max: 31.58
Current: 21.06

-14.98
31.58
Net-margin (%) 20.13
ACGL's Net-margin (%) is ranked higher than
93% of the 187 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.52 vs. ACGL: 20.13 )
ACGL' s 10-Year Net-margin (%) Range
Min: -9.3   Max: 28.8
Current: 20.13

-9.3
28.8
ROE (%) 12.57
ACGL's ROE (%) is ranked higher than
84% of the 189 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.70 vs. ACGL: 12.57 )
ACGL' s 10-Year ROE (%) Range
Min: -9.36   Max: 21.26
Current: 12.57

-9.36
21.26
ROA (%) 3.63
ACGL's ROA (%) is ranked higher than
82% of the 189 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.65 vs. ACGL: 3.63 )
ACGL' s 10-Year ROA (%) Range
Min: -3.75   Max: 5.7
Current: 3.63

-3.75
5.7
Revenue Growth (%) 8.00
ACGL's Revenue Growth (%) is ranked higher than
70% of the 166 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.10 vs. ACGL: 8.00 )
ACGL' s 10-Year Revenue Growth (%) Range
Min: -31.4   Max: 259.6
Current: 8

-31.4
259.6
EBITDA Growth (%) 0.50
ACGL's EBITDA Growth (%) is ranked higher than
59% of the 154 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.80 vs. ACGL: 0.50 )
ACGL' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 432.5
Current: 0.5

0
432.5
EPS Growth (%) -0.70
ACGL's EPS Growth (%) is ranked higher than
60% of the 161 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.10 vs. ACGL: -0.70 )
ACGL' s 10-Year EPS Growth (%) Range
Min: -4.2   Max: 92.8
Current: -0.7

-4.2
92.8
» ACGL's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

ACGL Guru Trades in Q1 2013

Third Avenue Management 813,465 sh (+2.41%)
Ruane Cunniff 12,588 sh (unchged)
Steven Cohen Sold Out
Ron Baron 9,610,637 sh (-0.82%)
Jeremy Grantham 57,783 sh (-76.48%)
» More
Q2 2013

ACGL Guru Trades in Q2 2013

Steven Cohen 23,135 sh (New)
Jeremy Grantham 118,532 sh (+105.13%)
Ron Baron 9,532,802 sh (-0.81%)
Third Avenue Management 777,715 sh (-4.39%)
Ruane Cunniff 11,988 sh (-4.77%)
» More
Q3 2013

ACGL Guru Trades in Q3 2013

Jim Simons 176,200 sh (New)
Steven Cohen 23,498 sh (+1.57%)
Jeremy Grantham 118,912 sh (+0.32%)
Ron Baron 9,538,863 sh (+0.06%)
Third Avenue Management 777,715 sh (unchged)
Ruane Cunniff 11,988 sh (unchged)
» More
Q4 2013

ACGL Guru Trades in Q4 2013

Ron Baron 9,516,737 sh (-0.23%)
Third Avenue Management 775,565 sh (-0.28%)
Ruane Cunniff 11,538 sh (-3.75%)
Jeremy Grantham 89,206 sh (-24.98%)
Jim Simons 91,600 sh (-48.01%)
Steven Cohen 4,100 sh (-82.55%)
» More
» Details

Insider Trades

Latest Guru Trades with ACGL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ruane Cunniff 2012-09-30 Reduce -44.03%$38.43 - $41.64 $ 57.3844%14508
Ruane Cunniff 2012-06-30 Reduce -23.2%$37.01 - $39.49 $ 57.3850%25923
Ruane Cunniff 2011-12-31 Reduce -96.83%0.35%$31.93 - $37.77 $ 57.3860%33753
George Soros 2011-12-31 Sold Out 0.03%$31.93 - $37.77 $ 57.3860%0
Glenn Greenberg 2011-09-30 Sold Out 4.4541%$30.2 - $34.54 $ 57.3875%0
George Soros 2011-09-30 New Buy0.03%$30.2 - $34.54 $ 57.3875%46000
Glenn Greenberg 2011-06-30 Reduce -33.88%2.31%$31.99 - $34.84 $ 57.3870%1597009
Glenn Greenberg 2011-03-31 Add 2.76%0.18%$28.6433 - $32.63 $ 57.3891%805048
Premium More recent guru trades are included for Premium Members only!!
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Preferred stocks of Arch Capital Group Ltd

SymbolPriceYieldDescription
ARHPRC0.006.68

Guru Investment Theses on Arch Capital Group Ltd

Baron Funds Comments on Arch Capital Group Inc. - May 01, 2013

Arch Capital Group Ltd. (ACGL) is a specialty insurance and reinsurance company. The stock rose during the first quarter due to better than expected earnings results and an improving insurance market. Arch also announced an acquisition that would allow it to enter what we believe to be an attractive new business line, mortgage insurance. (Josh Saltman)

From Baron Funds’ first quarter 2013 letter.


Check out Ron Baron latest stock trades

Baron Funds Comments on Arch Capital Group - Aug 24, 2012

From Baron Funds' second quarter commentary:

Shares of Arch Capital Group Ltd. (ACGL) rose 6.6% during the second quarter versus a 2.8% decline for the S&P 500 Index. The outperformance was driven by improving pricing expectations. During the second quarter, overall pricing rose 4%, up one percentage point from the first quarter. Most of this increase came from shorter-tail lines. Pricing continues to grow slightly faster than loss cost which implies improving margin. Most meaningful to Arch, specialty pricing rose 6%. This indicates that the admitted insurers are pulling out of the specialty lines because there is now enough business to be written in the standard lines. This reduces competition and helps pricing go up. Perversely, pricing also continues to improve because interest rates are so low. Arch and its peers are unable to re-invest maturing securities at the same yield and thus they need to rely on better underwriting margins to buoy overall earnings. This leads to better pricing discipline across the industry, and Arch, which is known for its patience and discipline in underwriting, benefits greatly. Going forward, pricing should continue to improve slowly, but unless we see more sizeable losses it is unlikely that pricing will become "hard." We are at a major inflection point in P&C insurance pricing. What happens to capital (assuming rates stay low) will dictate the direction overall pricing goes from here. Arch is writing new business around a 10% ROE.We believe the industry is writing business a point or two below this, and just slightly below its cost of equity.We expect an improving market to push ROEs above cost of equity and drive multiples up beyond 1 times book value. (Rob Susman)
Check out Ron Baron latest stock trades

Top Ranked Articles about Arch Capital Group Ltd

Baron Funds Comments on Arch Capital Group Inc.
Arch Capital Group Ltd. (ACGL) is a specialty insurance and reinsurance company. The stock rose during the first quarter due to better than expected earnings results and an improving insurance market. Arch also announced an acquisition that would allow it to enter what we believe to be an attractive new business line, mortgage insurance. (Josh Saltman) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 11.30
ACGL's P/E(ttm) is ranked higher than
65% of the 166 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 11.30 vs. ACGL: 11.30 )
ACGL' s 10-Year P/E(ttm) Range
Min: 4.13   Max: 26.93
Current: 11.3

4.13
26.93
P/B 1.44
ACGL's P/B is ranked higher than
57% of the 190 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.25 vs. ACGL: 1.44 )
ACGL' s 10-Year P/B Range
Min: 0.53   Max: 1.63
Current: 1.44

0.53
1.63
P/S 2.21
ACGL's P/S is ranked lower than
58% of the 188 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.14 vs. ACGL: 2.21 )
ACGL' s 10-Year P/S Range
Min: 0.8   Max: 2.28
Current: 2.21

0.8
2.28
PFCF 9.35
ACGL's PFCF is ranked higher than
64% of the 153 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.64 vs. ACGL: 9.35 )
ACGL' s 10-Year PFCF Range
Min: 1.29   Max: 10.03
Current: 9.35

1.29
10.03
EV-to-EBIT 12.83
ACGL's EV-to-EBIT is ranked lower than
51% of the 168 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.51 vs. ACGL: 12.83 )
ACGL' s 10-Year EV-to-EBIT Range
Min: 4.4   Max: 18.6
Current: 12.83

4.4
18.6
PEG 28.25
ACGL's PEG is ranked lower than
62% of the 102 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.88 vs. ACGL: 28.25 )
ACGL' s 10-Year PEG Range
Min: 0.13   Max: 2.24
Current: 28.25

0.13
2.24
Shiller P/E 14.25
ACGL's Shiller P/E is ranked higher than
75% of the 133 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 17.24 vs. ACGL: 14.25 )
ACGL' s 10-Year Shiller P/E Range
Min: 7.51   Max: 177.47
Current: 14.25

7.51
177.47

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.44
ACGL's Price/Tangible Book is ranked higher than
69% of the 178 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.44 vs. ACGL: 1.44 )
ACGL' s 10-Year Price/Tangible Book Range
Min: 0.33   Max: 1.5
Current: 1.44

0.33
1.5
Price/DCF (Projected) 0.52
ACGL's Price/DCF (Projected) is ranked higher than
69% of the 137 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.52 vs. ACGL: 0.52 )
ACGL' s 10-Year Price/DCF (Projected) Range
Min: 0.21   Max: 0.89
Current: 0.52

0.21
0.89
Price/Median PS Value 1.57
ACGL's Price/Median PS Value is ranked lower than
55% of the 179 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.05 vs. ACGL: 1.57 )
ACGL' s 10-Year Price/Median PS Value Range
Min: 0.44   Max: 4.82
Current: 1.57

0.44
4.82
Price/Peter Lynch Fair Value 0.69
ACGL's Price/Peter Lynch Fair Value is ranked higher than
70% of the 46 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.80 vs. ACGL: 0.69 )
ACGL' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.15   Max: 2.2
Current: 0.69

0.15
2.2
Price/Graham Number 0.81
ACGL's Price/Graham Number is ranked higher than
69% of the 158 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.81 vs. ACGL: 0.81 )
ACGL' s 10-Year Price/Graham Number Range
Min: 0.34   Max: 4.53
Current: 0.81

0.34
4.53
Earnings Yield (Greenblatt) 7.80
ACGL's Earnings Yield (Greenblatt) is ranked higher than
54% of the 184 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.20 vs. ACGL: 7.80 )
ACGL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.4   Max: 22.8
Current: 7.8

5.4
22.8
Forward Rate of Return (Yacktman) 27.47
ACGL's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 143 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 7.66 vs. ACGL: 27.47 )
ACGL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.1   Max: 50.9
Current: 27.47

2.1
50.9

Business Description

Industry: Insurance - Property & Casualty » Insurance - Property & Casualty
Compare:RLI, TRV, MBI, QBIEY, TKOMY » details
Traded in other countries:RSK.Germany
Arch Capital Group Ltd. was formed in September 2000. The Company is a Bermuda public limited liability company which provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. The Company classifies its businesses into two underwriting segments: insurance and reinsurance. Its insurance operations are conducted in Bermuda, the United States, Europe, Canada, Australia and South Africa. Its insurance operations in Bermuda are conducted through Arch Insurance (Bermuda), a division of Arch Re Bermuda. In the U.S., its insurance group's principal insurance subsidiaries are Arch Insurance, Arch Specialty, Arch E&S and Arch Indemnity Insurance Company ("Arch Indemnity"). Arch Insurance is an admitted insurer in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam with a branch office in Canada. Its insurance group's European operations are conducted on two platforms: Arch Insurance Company Europe and Arch Syndicate 2012. Arch Insurance Europe conducts its operations from London. Arch Insurance Company Europe is approved as an excess and surplus lines insurer in 27 states and the District of Columbia and also has branches in Denmark, Finland, Germany, Italy, Norway, Spain and Sweden. Its reinsurance operations are conducted on a worldwide basis through its reinsurance subsidiaries, Arch Re Bermuda, Arch Re U.S. and Arch Re Europe. Arch Re Bermuda is a registered Class 4 insurer and long-term insurer and is headquartered in Hamilton, Bermuda. Arch Re U.S. is licensed or is an accredited or otherwise approved reinsurer in 50 states and the District of Columbia and operates out of its office in Morristown, New Jersey. Its property facultative reinsurance operations are conducted mainly through Arch Re U.S. with certain executive functions conducted through Arch Re Facultative Underwriters Inc. located in Farmington, Connecticut. The property facultative reinsurance operations have offices throughout the U.S., Canada and in Europe. The Company competes with major U.S. and non-U.S. insurers and reinsurers, some of which have greater financial, marketing and management resources.

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