ARCH CAPITAL GROUP LTD. (ACGL)
Fire, Marine & Casualty Insurance · Fire, Marine & Casualty Insurance · NASDAQ
$93.60
-0.70%
Investru Score
52.9 / 100
Neutral
Why is ACGL moving?
ACGL is down 0.70% today, amid an otherwise sideways trend.
Business overview
- The company operates in the Fire, Marine & Casualty Insurance sector.
- It functions within the Fire, Marine & Casualty Insurance industry.
These categorizations place the business squarely within the specialized property and casualty insurance market.
Bull case
The bull case rests on an attractive trailing P/E of 7.16 paired with a high free cash flow yield of 18.2% and robust 30.7% FCF margins. If earnings growth reaccelerates above its current 3.7% rate, the low valuation could drive multiple expansion.
Bear case
The bear case centers on stagnant earnings growth of 3.7% year-over-year combined with a lack of balance sheet transparency. If technical weakness deepens—keeping the price below the 50-day and 200-day moving averages—investor sentiment could deteriorate further.
ACGL’s Investru Score changed -3 points recently. Want to know exactly what changed and why? That’s a Pro feature →
Score breakdown
- Financial Quality
- 69
- Growth
- 33
- Profitability
- 53
- Balance Sheet
- 50
- Valuation
- 84
- Momentum
- 12
Score history
-3.0 over the last 33 days, driven mainly by momentum (-30).
Financial quality
- Return on equity is 18.2%.
- Earnings quality stands at 1.4.
- Free cash flow margin is 30.7%.
Together, these figures point to strong capital returns and high-quality earnings backed by robust cash generation.
- ROIC
- Data unavailable
- ROE
- 18.2%
- FCF Margin
- 30.7%
- Free Cash Flow (TTM)
- $6.1B
- Earnings Quality (OCF ÷ Net Income)
- 1.4x
Valuation
- Trailing P/E ratio is 7.16.
- Forward P/E ratio is 9.82.
- Trailing PEG ratio is 1.95.
- Forward PEG ratio is 2.68.
- Median PEG ratio is 2.32.
- Price-to-sales ratio is 1.72.
- Free cash flow yield is 18.2%.
Collectively, these valuation metrics suggest the stock is attractively priced relative to its earnings and free cash flow generation.
- P/E (TTM)
- 7.2x
- Forward P/E
- 9.8x
- PEG (P/E ÷ EPS Growth)
- 2.0x
- Company Median PEG
- 2.3x
- Price / Sales
- 1.7x
- EV / EBITDA
- Data unavailable
- FCF Yield
- 18.2%
Key risks
- Earnings growth of 3.7% year-over-year is sluggish, which could pressure future valuation multiples if top-line expansion slows further.(Probability: High · Impact: Medium)
- A complete lack of balance sheet metrics prevents assessing the company's debt load and liquidity buffers.(Probability: Medium · Impact: High)
- Sideways technical trend with price trading below both the 50-day and 200-day moving averages signals persistent lack of upward momentum.(Probability: High · Impact: Low)
Latest earnings
- Q2 FY26 EPS
- $3.00
- Estimate
- $2.48
- Surprise
- +20.8%
- Earnings per share growth year-over-year is 3.7%.
- Earnings quality ratio is 1.4.
These metrics demonstrate modest bottom-line expansion supported by reliable cash earnings.
SEC filings
- 10-Q · Q2 FY26 · period ended 2026-06-30Filed 2026-08-04
- 10-Q · Q1 FY26 · period ended 2026-03-31Filed 2026-05-05
- 10-K · FY25 · period ended 2025-12-31Filed 2026-02-26
- 10-Q · Q3 FY25 · period ended 2025-09-30Filed 2025-11-06
- 10-Q · Q2 FY25 · period ended 2025-06-30Filed 2025-08-05
- 10-K · FY24 · period ended 2024-12-31Filed 2025-02-27
- 10-K · FY23 · period ended 2023-12-31Filed 2024-02-23
- 10-K · FY22 · period ended 2022-12-31Filed 2023-02-24
- 10-K · FY20 · period ended 2021-12-31Filed 2022-02-25
Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.
Market cap $33.6B · 52-week range $82.45–$107.09 · market data as of Oct 2, 2026, 4:00 PM ET · latest SEC filing: 2026-08-04
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Analyze ACGL with Investru AINot investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.