NASDAQ · Financial Services

Arch Capital Group Ltd.

ACGL · Insurance - Diversified

$91.18

▼ -1.19 (-1.29%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Net Income Margin 23.9%

Fin. Health

B⤢

Years to Pay Off Debt 2.6 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.36x

Cash Flow

A⤢

Free Cash Flow $1.2B

CapEx % of Net Income 0.8%

Owner Earnings $1.1B

Cash Flow

Free Cash Flow $1.2B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 0.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.1B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Arch Capital Group Ltd.

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage. The Insurance segment offers commercial automobile; commercial multiperil; financial and professional line liability; admitted, excess, and surplus casualty lines; property and short-tail specialty; workers compensation; and casualty insurance. Its Reinsurance segment provides reinsurance products for casualty; marine and aviation; property catastrophe; property excluding property catastrophe; and other specialty products. The Mortgage segment offers U.S. primary mortgage insurance business written predominantly on loans sold to the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation; reinsurance and underwriting services related to the U.S. credit-risk transfer business and other U.S. mortgage reinsurance transactions; and international mortgage insurance and reinsurance business covering loans. It markets its products through a group of licensed independent retail and wholesale brokers. The company was formerly known as Risk Capital Holdings, Inc. Arch Capital Group Ltd. was founded in 1995 and is headquartered in Pembroke, Bermuda.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $31.9B

Enterprise Value $32.2B

P/E (TTM) 7.01

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 23.9%

Company Info

Sector Financial Services

Industry Insurance - Diversified

Employees 8000

Country Bermuda

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Arch Capital Group Ltd. at $91.18.

The business passes only 3 of 5 of Graham's defensive criteria — well below his required standard.

At $91.18, the stock trades at a 39% premium to its Graham Number of $65.82. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	N/A•	N/A
Operating Margin %	N/A•	N/A
Net Income %	23.9%▼	26.0%
Diluted EPS	2.88▼	3.35

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$81.4B	$79.2B	N/A
Total Debt	$2.7B→	$2.7B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	2.61	2.20	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$1.2B▼	$1.4B•	N/A
Owner Earnings	$1.1B	$1.3B	N/A
CapEx % of Net Income	0.8%	0.9%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Net Income From Continuing Operation Net Minority Interest	1,047,000	1,238,000
Reconciled Depreciation	30,000	47,000
EBIT	1,146,000	1,425,000
Net Interest Income	-37,000	-38,000
Interest Expense	37,000	38,000
Interest Income	8,000
Normalized Income	1,047,000	1,238,000
Net Income From Continuing And Discontinued Operation	1,047,000	1,238,000
Total Expenses	3,267,000	3,373,000
Diluted Average Shares	359,700	366,600
Basic Average Shares	353,200	359,400
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,037,000	1,228,000
Net Income Common Stockholders	1,037,000	1,228,000
Preferred Stock Dividends	10,000	10,000
Net Income	1,047,000	1,238,000
Net Income Including Noncontrolling Interests	1,047,000	1,238,000
Net Income Continuous Operations	1,047,000	1,238,000
Earnings From Equity Interest Net Of Tax	36,000	61,000
Tax Provision	98,000	210,000
Pretax Income	1,109,000	1,387,000
Other Income Expense	54,000	68,000
Net Non Operating Interest Income Expense	-37,000	-38,000
Interest Expense Non Operating	37,000	38,000
Other Operating Expenses	541,000	384,000
Depreciation And Amortization In Income Statement	30,000	47,000
Amortization	30,000	47,000
Total Revenue	4,376,000	4,760,000
Operating Revenue	4,376,000	4,760,000
Loss Adjustment Expense	2,089,000	2,280,000
Net Policyholder Benefits And Claims	2,089,000	2,280,000
Policyholder Benefits Gross	2,831,000	3,319,000
Policyholder Benefits Ceded	742,000	1,039,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	249,400	240,800
Preferred Shares Number	830	830
Ordinary Shares Number	352,900	359,000
Share Issued	602,300	599,800
Net Debt	1,815,000	1,736,000
Total Debt	2,729,000	2,729,000
Tangible Book Value	22,168,000	22,154,000
Invested Capital	26,087,000	26,105,000
Net Tangible Assets	22,998,000	22,984,000
Common Stock Equity	23,358,000	23,376,000
Preferred Stock Equity	830,000	830,000
Total Capitalization	26,917,000	26,935,000
Total Equity Gross Minority Interest	24,188,000	24,206,000
Stockholders Equity	24,188,000	24,206,000
Gains Losses Not Affecting Retained Earnings	-333,000	5,000
Other Equity Adjustments	-333,000	5,000	-720,000
Treasury Stock	7,223,000	6,410,000
Retained Earnings	28,082,000	27,045,000
Additional Paid In Capital	2,831,000	2,735,000
Capital Stock	831,000	831,000
Common Stock	1,000	1,000
Preferred Stock	830,000	830,000
Total Liabilities Net Minority Interest	57,258,000	55,035,000
Long Term Debt And Capital Lease Obligation	2,729,000	2,729,000
Long Term Debt	2,729,000	2,729,000
Payables And Accrued Expenses	4,997,000	4,597,000
Payables	4,997,000	4,597,000
Accounts Payable	4,997,000	4,597,000
Total Assets	81,446,000	79,241,000
Investments And Advances	45,987,000	45,860,000
Long Term Equity Investment	7,982,000	7,766,000
Investments In Other Ventures Under Equity Method	7,982,000	7,766,000
Goodwill And Other Intangible Assets	1,190,000	1,222,000
Other Intangible Assets		615,000	780,000
Goodwill		607,000	571,000
Prepaid Assets	3,183,000	2,659,000
Receivables	18,511,000	17,519,000
Accounts Receivable	18,511,000	17,519,000
Cash Cash Equivalents And Short Term Investments	12,175,000	11,543,000
Other Short Term Investments	11,261,000	10,550,000
Cash And Cash Equivalents	914,000	993,000

Cash Flow

	2026	2025
Free Cash Flow	1,180,000	1,393,000
Repurchase Of Capital Stock	-800,000	-798,000
Issuance Of Capital Stock		30,000
Capital Expenditure	-8,000	-11,000
Interest Paid Supplemental Data	0	63,000
Income Tax Paid Supplemental Data	22,000	143,000
End Cash Position	1,781,000	2,067,000
Beginning Cash Position	2,067,000	1,854,000
Effect Of Exchange Rate Changes	-8,000	4,000
Changes In Cash	-278,000	209,000
Financing Cash Flow	-827,000	-778,000
Cash Flow From Continuing Financing Activities	-827,000	-778,000
Net Other Financing Charges	-12,000	0
Cash Dividends Paid	-15,000	-10,000
Preferred Stock Dividend Paid	-10,000	-10,000
Common Stock Dividend Paid	-5,000	0
Net Common Stock Issuance	-800,000	-768,000
Common Stock Payments	-800,000	-798,000
Common Stock Issuance		30,000
Investing Cash Flow	-639,000	-417,000
Cash Flow From Continuing Investing Activities	-639,000	-417,000
Net Other Investing Changes	-5,000	111,000
Net Investment Purchase And Sale	-626,000	-517,000
Sale Of Investment	9,383,000	8,453,000
Purchase Of Investment	-10,009,000	-8,970,000
Net PPE Purchase And Sale	-8,000	-11,000
Purchase Of PPE	-8,000	-11,000
Operating Cash Flow	1,188,000	1,404,000
Cash Flow From Continuing Operating Activities	1,188,000	1,404,000
Change In Working Capital	75,000	296,000
Change In Other Working Capital	-378,000	107,000
Change In Payables And Accrued Expense	419,000	-319,000
Change In Payable	419,000	-319,000
Change In Account Payable	419,000	-319,000
Change In Receivables	-820,000	731,000
Changes In Account Receivables	-820,000	731,000
Stock Based Compensation	82,000	24,000
Depreciation And Amortization	30,000	47,000
Amortization Cash Flow	30,000	47,000
Amortization Of Intangibles	30,000	47,000
Operating Gains Losses	-46,000	-201,000
Earnings Losses From Equity Investments	-137,000	-194,000
Gain Loss On Investment Securities	91,000	-7,000
Net Income From Continuing Operations	1,047,000	1,238,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.6B ▼ $4.4B -4.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: 12.5% ▲ 23.9% +11.4pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$4.4B/qtr (≈$17.5B ann.)

vs > $1.5B annualised revenue

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.2B

vs Positive

Operating Cash Flow

$1.2B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

1.3x

Net Assets: $24.2B

Peers & Industry

No auto-detected peers for Insurance - Diversified. You can manually compare ACGL against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

2.62%

Low — management has little skin in the game

Return on Equity (ROE)

4.5%

Weak — poor returns on equity

Return on Assets (ROA)

1.3%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$1.9B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is declining — management is deleveraging

Leadership Team

Nicolas Alain Emmanuel Papadopoulo

CEO & Director

Age 63

Pay: $7,285,628

0.696% of net income

Maamoun Jamil Rajeh

President

Age 55

Pay: $4,826,231

0.461% of net income

Francois Morin

Executive VP, CFO & Treasurer

Age 58

Pay: $3,721,770

0.355% of net income

Donald Watson

Executive Vice President of Financial Services

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.97%	31,354,204
Artisan Partners Limited Partnership	6.49%	22,666,011
Vanguard Capital Management LLC	6.47%	22,612,609
BAMCO Inc.	4.78%	16,709,759
State Street Corporation	4.65%	16,250,722
Vanguard Portfolio Management LLC	4.21%	14,712,819
WCM Investment Management, LLC	3.61%	12,602,412
Geode Capital Management, LLC	3.03%	10,586,271

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.31

Low volatility — more stable than the market

Short Interest

2.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.11x

Conservative balance sheet — low financial risk

Current Ratio

0.57x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $82.45 Current: $91.18 High: $103.39

Currently at 42% of 52-week range