# Arch Capital Group Ltd (ACGL) — Stock CV

Arch Capital Group Ltd is a $32.6B financial services company. Revenue grew 0.4% over the last year, and it keeps 24¢ of every dollar of sales as profit. It trades at 7.0× earnings — in the cheapest third of its own history.

> Arch Capital Group Ltd is a Bermuda company that writes insurance and reinsurance with operations in the United States, Canada, Europe, Australia, and the United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage.

## Identity

- **Ticker**: ACGL
- **Sector**: Financial Services
- **Industry**: Fire, Marine & Casualty Insurance
- **Headquarters**: PEMBROKE, D0
- **Employees**: 8 000
- **Website**: https://www.archgroup.com
- **Market cap**: $32.6B
- **Last price**: $95.57
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $19.2B
- **Net income**: $4.69B
- **Free cash flow**: $6.05B
- **Net debt**: $1.89B
- **P/E**: 7.0
- **Revenue growth (YoY)**: 0.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 75 |
| Profitability | 85 |
| Health | 47 |
| Quality | 80 |
| Moat | 63 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +0.4% YoY
- [x] Profitable — $4.69B TTM
- [x] Profit growing — +44.1% YoY
- [x] Generates cash — $6.05B TTM
- [x] Debt under control — ~0.3y of cash flow to repay
- [x] Established company — $32.6B market cap
- [x] Not printing shares — -8.4% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 0.7 — distress
- [x] Pays a dividend — yield 0.14%
- [x] Valuation not extreme — P/E 7.0

## Experience (career milestones)

- **FY2023** — Revenue crossed $10B: $13.6B for the year
- **FY2023** — Best year on record: $4.44B net income
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $4.46B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2015** — Arch Capital entered the mortgage insurance business in 2015 with the formation of Arch Mortgage Guaranty and, in…
- **Sep 11, 2001** — Following the event of September 11, 2001, Arch Capital launched an underwriting initiative to address the global…
- **2000** — The company was founded in May 2000 by Robert Clements and Peter A

## Strengths

- Strongly profitable — 24.4% net margin
- Strong cash conversion — FCF is 31.5% of revenue
- Could repay net debt from ~0.5 years of free cash flow
- Interest covered 6.3× by operating earnings
- High returns on invested capital (ROIC 17.3%)

## Watch-outs

- Altman Z-Score 0.68 — elevated financial-distress risk

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $9.25B | $2.09B | $3.42B |
| FY2022 | $9.61B | $1.48B | $3.76B |
| FY2023 | $13.6B | $4.44B | $5.70B |
| FY2024 | $17.4B | $4.31B | $6.62B |
| FY2025 | $19.9B | $4.40B | $6.13B |

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Source: https://stockcv.com/ACGL — derived from company filings; may be delayed or incomplete. Information, not investment advice.