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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 : 4/10

vs
industry
vs
history
Cash to Debt 0.52
ACGL's Cash to Debt is ranked lower than
76% of the 62 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 3.94 vs. ACGL: 0.52 )
Ranked among companies with meaningful Cash to Debt only.
ACGL' s 10-Year Cash to Debt Range
Min: 0.14  Med: 0.89 Max: No Debt
Current: 0.52
Equity to Asset 0.28
ACGL's Equity to Asset is ranked lower than
62% of the 61 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.32 vs. ACGL: 0.28 )
Ranked among companies with meaningful Equity to Asset only.
ACGL' s 10-Year Equity to Asset Range
Min: 0.22  Med: 0.29 Max: 0.97
Current: 0.28
0.22
0.97
Interest Coverage 18.50
ACGL's Interest Coverage is ranked lower than
60% of the 48 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 36.14 vs. ACGL: 18.50 )
Ranked among companies with meaningful Interest Coverage only.
ACGL' s 10-Year Interest Coverage Range
Min: 12.77  Med: 39.54 Max: 9999.99
Current: 18.5
12.77
9999.99
F-Score: 5
WACC vs ROIC
7.83%
18.19%
WACC
ROIC
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 : 7/10

vs
industry
vs
history
Operating margin (%) 23.83
ACGL's Operating margin (%) is ranked higher than
71% of the 63 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.79 vs. ACGL: 23.83 )
Ranked among companies with meaningful Operating margin (%) only.
ACGL' s 10-Year Operating margin (%) Range
Min: -14.98  Med: 13.14 Max: 31.58
Current: 23.83
-14.98
31.58
Net-margin (%) 22.67
ACGL's Net-margin (%) is ranked higher than
79% of the 63 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 9.49 vs. ACGL: 22.67 )
Ranked among companies with meaningful Net-margin (%) only.
ACGL' s 10-Year Net-margin (%) Range
Min: -9.3  Med: 13.11 Max: 28.8
Current: 22.67
-9.3
28.8
ROE (%) 14.91
ACGL's ROE (%) is ranked higher than
73% of the 63 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.41 vs. ACGL: 14.91 )
Ranked among companies with meaningful ROE (%) only.
ACGL' s 10-Year ROE (%) Range
Min: -8.71  Med: 10.86 Max: 22.81
Current: 14.91
-8.71
22.81
ROA (%) 4.18
ACGL's ROA (%) is ranked higher than
63% of the 63 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 3.08 vs. ACGL: 4.18 )
Ranked among companies with meaningful ROA (%) only.
ACGL' s 10-Year ROA (%) Range
Min: -4  Med: 2.74 Max: 6.54
Current: 4.18
-4
6.54
Revenue Growth (3Y)(%) 10.10
ACGL's Revenue Growth (3Y)(%) is ranked higher than
60% of the 50 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 8.80 vs. ACGL: 10.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
ACGL' s 10-Year Revenue Growth (3Y)(%) Range
Min: -31.4  Med: 10.10 Max: 259.6
Current: 10.1
-31.4
259.6
EBITDA Growth (3Y)(%) 25.90
ACGL's EBITDA Growth (3Y)(%) is ranked higher than
75% of the 40 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 14.80 vs. ACGL: 25.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
ACGL' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 19.65 Max: 432.5
Current: 25.9
0
432.5
EPS Growth (3Y)(%) 26.60
ACGL's EPS Growth (3Y)(%) is ranked higher than
67% of the 40 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 14.00 vs. ACGL: 26.60 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
ACGL' s 10-Year EPS Growth (3Y)(%) Range
Min: -4.2  Med: 29.70 Max: 92.8
Current: 26.6
-4.2
92.8
» ACGL's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2014

ACGL Guru Trades in Q2 2014

Jim Simons 212,600 sh (New)
Ruane Cunniff 11,538 sh (unchged)
Ron Baron 9,299,851 sh (-1.63%)
Jeremy Grantham 91,800 sh (-3.37%)
Third Avenue Management 393,189 sh (-17.49%)
» More
Q3 2014

ACGL Guru Trades in Q3 2014

Paul Tudor Jones 6,545 sh (New)
Jim Simons 1,147,100 sh (+439.56%)
Jeremy Grantham 102,340 sh (+11.48%)
Third Avenue Management 385,189 sh (-2.03%)
Ron Baron 9,073,178 sh (-2.44%)
Ruane Cunniff 10,788 sh (-6.50%)
» More
Q4 2014

ACGL Guru Trades in Q4 2014

Ken Fisher 4,006 sh (New)
David Dreman 706 sh (New)
Ruane Cunniff 10,788 sh (unchged)
Ron Baron 9,052,316 sh (-0.23%)
Jim Simons 804,300 sh (-29.88%)
Paul Tudor Jones 3,583 sh (-45.26%)
Third Avenue Management 121,917 sh (-68.35%)
Jeremy Grantham 4,160 sh (-95.94%)
» More
Q1 2015

ACGL Guru Trades in Q1 2015

Ron Baron 9,053,051 sh (+0.01%)
David Dreman 706 sh (unchged)
Jeremy Grantham Sold Out
Paul Tudor Jones Sold Out
Ken Fisher Sold Out
Ruane Cunniff 10,688 sh (-0.93%)
Jim Simons 753,200 sh (-6.35%)
Third Avenue Management 103,494 sh (-15.11%)
» More
» Details

Insider Trades

Latest Guru Trades with ACGL

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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» Interactive Charts

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Preferred stocks of Arch Capital Group Ltd

SymbolPriceYieldDescription
ARHPRC26.636.34

Guru Investment Theses on Arch Capital Group Ltd

Baron Funds Comments on Arch Capital Group Ltd - Jul 22, 2014

Among our longer term holdings, 12 positions, representing about 15.1% of the portfolio, have been held for over 10 years. On average, these investments increased almost six-fold in the time we have held them. Holdings include Arch Capital Group Ltd. (ACGL), an insurance and reinsurance company that excels at writing specialized policies and has a long, successful track record across numerous insurance cycles. In the 12 years we have owned Arch Capital, its market cap has grown from $0.4 billion to more than $7.7 billion today.



From Baron Funds' Second Quarter 2014 Shareholder Letter.



Check out Ron Baron latest stock trades

Baron Funds Comments on Arch Capital Group Ltd. - May 21, 2014

Insurance company Arch Capital Group Ltd. (NASDAQ:ACGL) announced strong fourth quarter earnings and book value growth, but the stock still fell modestly in the first quarter, negatively impacted by industry-wide underperformance in property & casualty insurance stocks due to weaker pricing trends. The industry is overcapitalized following a period of few major catastrophes, low inflation, and an influx of capital from non- traditional sources. We retain conviction based on Arch's strong management team, opportunistic underwriting strategy and industry- leading returns on equity. (Josh Saltman)





From Baron Funds' first quarter 2014 letter to shareholders.



Check out Ron Baron latest stock trades

Top Ranked Articles about Arch Capital Group Ltd

Ron Baron Adds to Some of His Most Valuable Stakes in First Quarter
Baron Funds manager Ron Baron (Trades, Portfolio) has a reputation for investing in small, underappreciated companies, and his additions to his portfolio in the first quarter reinforce that reputation. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 10.45
ACGL's P/E(ttm) is ranked higher than
62% of the 53 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.40 vs. ACGL: 10.45 )
Ranked among companies with meaningful P/E(ttm) only.
ACGL' s 10-Year P/E(ttm) Range
Min: 4.13  Med: 9.34 Max: 26.93
Current: 10.45
4.13
26.93
Forward P/E 17.36
ACGL's Forward P/E is ranked lower than
89% of the 35 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.79 vs. ACGL: 17.36 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 10.40
ACGL's PE(NRI) is ranked higher than
60% of the 53 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.40 vs. ACGL: 10.40 )
Ranked among companies with meaningful PE(NRI) only.
ACGL' s 10-Year PE(NRI) Range
Min: 4.14  Med: 9.36 Max: 27.11
Current: 10.4
4.14
27.11
P/B 1.51
ACGL's P/B is ranked lower than
63% of the 62 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.10 vs. ACGL: 1.51 )
Ranked among companies with meaningful P/B only.
ACGL' s 10-Year P/B Range
Min: 0.57  Med: 1.17 Max: 1.68
Current: 1.51
0.57
1.68
P/S 2.32
ACGL's P/S is ranked lower than
70% of the 60 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.27 vs. ACGL: 2.32 )
Ranked among companies with meaningful P/S only.
ACGL' s 10-Year P/S Range
Min: 0.8  Med: 1.48 Max: 2.32
Current: 2.32
0.8
2.32
PFCF 10.97
ACGL's PFCF is ranked higher than
70% of the 27 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 18.53 vs. ACGL: 10.97 )
Ranked among companies with meaningful PFCF only.
ACGL' s 10-Year PFCF Range
Min: 1.43  Med: 4.62 Max: 10.99
Current: 10.97
1.43
10.99
POCF 10.41
ACGL's POCF is ranked higher than
50% of the 42 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.34 vs. ACGL: 10.41 )
Ranked among companies with meaningful POCF only.
ACGL' s 10-Year POCF Range
Min: 1.41  Med: 4.52 Max: 10.42
Current: 10.41
1.41
10.42
EV-to-EBIT 9.38
ACGL's EV-to-EBIT is ranked lower than
65% of the 52 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 7.67 vs. ACGL: 9.38 )
Ranked among companies with meaningful EV-to-EBIT only.
ACGL' s 10-Year EV-to-EBIT Range
Min: 3  Med: 8.50 Max: 14.3
Current: 9.38
3
14.3
PEG 2.00
ACGL's PEG is ranked lower than
67% of the 27 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.22 vs. ACGL: 2.00 )
Ranked among companies with meaningful PEG only.
ACGL' s 10-Year PEG Range
Min: 0.13  Med: 0.70 Max: 7.32
Current: 2
0.13
7.32
Shiller P/E 14.06
ACGL's Shiller P/E is ranked lower than
59% of the 37 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 12.09 vs. ACGL: 14.06 )
Ranked among companies with meaningful Shiller P/E only.
ACGL' s 10-Year Shiller P/E Range
Min: 7.51  Med: 12.34 Max: 35.08
Current: 14.06
7.51
35.08
Days Sales Outstanding 252.71
ACGL's Days Sales Outstanding is ranked lower than
83% of the 29 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 58.49 vs. ACGL: 252.71 )
Ranked among companies with meaningful Days Sales Outstanding only.
ACGL' s 10-Year Days Sales Outstanding Range
Min: 62.96  Med: 154.14 Max: 784.5
Current: 252.71
62.96
784.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.53
ACGL's Price/Tangible Book is ranked lower than
63% of the 56 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.19 vs. ACGL: 1.53 )
Ranked among companies with meaningful Price/Tangible Book only.
ACGL' s 10-Year Price/Tangible Book Range
Min: 0.35  Med: 0.95 Max: 1.62
Current: 1.53
0.35
1.62
Price/Projected FCF 0.59
ACGL's Price/Projected FCF is ranked higher than
79% of the 24 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.88 vs. ACGL: 0.59 )
Ranked among companies with meaningful Price/Projected FCF only.
ACGL' s 10-Year Price/Projected FCF Range
Min: 0.17  Med: 0.36 Max: 1.2
Current: 0.59
0.17
1.2
Price/DCF (Earnings Based) 0.53
ACGL's Price/DCF (Earnings Based) is ranked lower than
100% of the 1 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.00 vs. ACGL: 0.53 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 1.57
ACGL's Price/Median PS Value is ranked lower than
82% of the 44 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.10 vs. ACGL: 1.57 )
Ranked among companies with meaningful Price/Median PS Value only.
ACGL' s 10-Year Price/Median PS Value Range
Min: 0.42  Med: 1.03 Max: 16.36
Current: 1.57
0.42
16.36
Price/Peter Lynch Fair Value 1.60
ACGL's Price/Peter Lynch Fair Value is ranked lower than
69% of the 13 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.81 vs. ACGL: 1.60 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
ACGL' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.12  Med: 0.31 Max: 2.2
Current: 1.6
0.12
2.2
Price/Graham Number 0.78
ACGL's Price/Graham Number is ranked lower than
55% of the 40 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.68 vs. ACGL: 0.78 )
Ranked among companies with meaningful Price/Graham Number only.
ACGL' s 10-Year Price/Graham Number Range
Min: 0.32  Med: 0.66 Max: 2.8
Current: 0.78
0.32
2.8
Earnings Yield (Greenblatt) (%) 10.65
ACGL's Earnings Yield (Greenblatt) (%) is ranked lower than
56% of the 61 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 12.20 vs. ACGL: 10.65 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
ACGL' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 7  Med: 11.70 Max: 33.5
Current: 10.65
7
33.5
Forward Rate of Return (Yacktman) (%) 15.13
ACGL's Forward Rate of Return (Yacktman) (%) is ranked higher than
58% of the 33 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.42 vs. ACGL: 15.13 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
ACGL' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 12.1  Med: 33.05 Max: 82.1
Current: 15.13
12.1
82.1

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 3,834 4,008 4,203
EPS($) 4.17 4.15 4.50
EPS without NRI($) 4.17 4.15 4.50

Business Description

Industry: Insurance - Specialty » Insurance - Reinsurance
Compare:RLI, TRV, MBI, QBIEY, TKOMY » details
Traded in other countries:ARHPRC.USA, 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 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, Germany, Italy, and Spain. Its reinsurance operations are conduct 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 U.S. and non-U.S. insurers and reinsurers, some of which have greater financial, marketing and management resources.
» More Articles for ACGL

Headlines

Articles On GuruFocus.com
Ron Baron Adds to Some of His Most Valuable Stakes in First Quarter Jun 12 2015 
Baron Funds Comments on Arch Capital Group Ltd Jul 22 2014 
Baron Funds Comments on Arch Capital Group Ltd. May 21 2014 
Ron Baron's Baron Funds Report - Second Quarter 2013 Aug 02 2013 
Baron Funds Comments on Arch Capital Group Inc. May 01 2013 
Weekly Top Insider Sells: DG, VRSK, ACGL, GOOG Dec 10 2012 
Baron Funds Comments on Arch Capital Group Aug 24 2012 
Hedge Fund Manager Glenn Greenberg Reports Q2 Portfolio Aug 15 2011 
Hedge Fund Manager Glenn Greenberg’s Q1 Portfolio Update May 16 2011 
Valuation Apr 04 2011 

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