Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt4.1 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.58x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$1.7B
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 Income1.1%
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.
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.
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.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
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
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
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.
Mr. Market is currently offering Arch Capital Group Ltd. at $107.28.
The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.
At $107.28, the stock trades at a 58% premium to its Graham Number of $67.79. 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
Q3 2026
Q4 2025
Gross Profit %
N/A•
N/A
Operating Margin %
N/A•
N/A
Net Income %
23.3%▼
26.0%
Diluted EPS
3.00▼
3.35
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$84.1B
$79.2B
Total Debt
$4.3B▲
$2.7B
Working Capital
N/A•
N/A
Years to Pay Debt
4.14
2.20
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$1.7B▲
$1.4B
Owner Earnings
$1.1B
$1.3B
CapEx % of Net Income
1.1%
0.9%
Income Statement
2026
2025
Tax Rate For Calcs
0
0
Net Income From Continuing Operation Net Minority Interest
1,035,000
1,238,000
Reconciled Depreciation
30,000
47,000
EBIT
1,248,000
1,425,000
Net Interest Income
-62,000
-38,000
Interest Expense
62,000
38,000
Interest Income
10,000
Normalized Income
1,035,000
1,238,000
Net Income From Continuing And Discontinued Operation
1,035,000
1,238,000
Total Expenses
3,264,000
3,373,000
Diluted Average Shares
341,400
366,600
Basic Average Shares
335,800
359,400
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
1,025,000
1,228,000
Net Income Common Stockholders
1,025,000
1,228,000
Preferred Stock Dividends
10,000
10,000
Net Income
1,035,000
1,238,000
Net Income Including Noncontrolling Interests
1,035,000
1,238,000
Net Income Continuous Operations
1,035,000
1,238,000
Earnings From Equity Interest Net Of Tax
33,000
61,000
Tax Provision
184,000
210,000
Pretax Income
1,186,000
1,387,000
Other Income Expense
65,000
68,000
Net Non Operating Interest Income Expense
-62,000
-38,000
Interest Expense Non Operating
62,000
38,000
Other Operating Expenses
478,000
384,000
Depreciation And Amortization In Income Statement
30,000
47,000
Amortization
30,000
47,000
Total Revenue
4,450,000
4,760,000
Operating Revenue
4,450,000
4,760,000
Loss Adjustment Expense
2,206,000
2,280,000
Net Policyholder Benefits And Claims
2,206,000
2,280,000
Policyholder Benefits Gross
3,216,000
3,319,000
Policyholder Benefits Ceded
1,010,000
1,039,000
Balance Sheet
2026
2025
Treasury Shares Number
240,800
Preferred Shares Number
830
830
Ordinary Shares Number
326,400
359,000
Share Issued
326,400
599,800
Net Debt
3,134,000
1,736,000
Total Debt
4,286,000
2,729,000
Tangible Book Value
21,029,000
22,154,000
Invested Capital
26,448,000
26,105,000
Net Tangible Assets
21,859,000
22,984,000
Common Stock Equity
22,162,000
23,376,000
Preferred Stock Equity
830,000
830,000
Total Capitalization
27,278,000
26,935,000
Total Equity Gross Minority Interest
22,992,000
24,206,000
Stockholders Equity
22,992,000
24,206,000
Gains Losses Not Affecting Retained Earnings
-1,076,000
5,000
Other Equity Adjustments
-1,076,000
5,000
Treasury Stock
9,823,000
6,410,000
Retained Earnings
30,154,000
27,045,000
Additional Paid In Capital
2,906,000
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
61,084,000
55,035,000
Long Term Debt And Capital Lease Obligation
4,286,000
2,729,000
Long Term Debt
4,286,000
2,729,000
Payables And Accrued Expenses
5,409,000
4,597,000
Payables
5,409,000
4,597,000
Accounts Payable
5,409,000
4,597,000
Total Assets
84,076,000
79,241,000
Investments And Advances
47,460,000
45,860,000
Long Term Equity Investment
8,464,000
7,766,000
Investments In Other Ventures Under Equity Method
8,464,000
7,766,000
Goodwill And Other Intangible Assets
1,133,000
1,222,000
Other Intangible Assets
615,000
Goodwill
607,000
Prepaid Assets
3,557,000
2,659,000
Receivables
19,529,000
17,519,000
Accounts Receivable
19,529,000
17,519,000
Cash Cash Equivalents And Short Term Investments
13,160,000
11,543,000
Other Short Term Investments
12,008,000
10,550,000
Cash And Cash Equivalents
1,152,000
993,000
Cash Flow
2026
2025
Free Cash Flow
1,748,000
1,393,000
Repurchase Of Capital Stock
-1,433,000
-798,000
Issuance Of Debt
-6,000
Issuance Of Capital Stock
12,000
30,000
Capital Expenditure
-11,000
-11,000
Interest Paid Supplemental Data
0
63,000
Income Tax Paid Supplemental Data
112,000
143,000
End Cash Position
1,977,000
2,067,000
Beginning Cash Position
2,006,000
1,854,000
Effect Of Exchange Rate Changes
7,000
4,000
Changes In Cash
-36,000
209,000
Financing Cash Flow
-1,444,000
-778,000
Cash Flow From Continuing Financing Activities
-1,444,000
-778,000
Net Other Financing Charges
-7,000
0
Cash Dividends Paid
-10,000
-10,000
Preferred Stock Dividend Paid
-10,000
-10,000
Common Stock Dividend Paid
0
0
Net Common Stock Issuance
-1,421,000
-768,000
Common Stock Payments
-1,433,000
-798,000
Common Stock Issuance
12,000
30,000
Net Issuance Payments Of Debt
-6,000
Net Long Term Debt Issuance
-6,000
Long Term Debt Issuance
-6,000
Investing Cash Flow
-351,000
-417,000
Cash Flow From Continuing Investing Activities
-351,000
-417,000
Net Other Investing Changes
0
111,000
Net Investment Purchase And Sale
-340,000
-517,000
Sale Of Investment
9,396,000
8,453,000
Purchase Of Investment
-9,736,000
-8,970,000
Net PPE Purchase And Sale
-11,000
-11,000
Purchase Of PPE
-11,000
-11,000
Operating Cash Flow
1,759,000
1,404,000
Cash Flow From Continuing Operating Activities
1,759,000
1,404,000
Change In Working Capital
743,000
296,000
Change In Other Working Capital
405,000
107,000
Change In Payables And Accrued Expense
-187,000
-319,000
Change In Payable
-187,000
-319,000
Change In Account Payable
-187,000
-319,000
Change In Receivables
234,000
731,000
Changes In Account Receivables
234,000
731,000
Stock Based Compensation
20,000
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
-69,000
-201,000
Earnings Losses From Equity Investments
-184,000
-194,000
Gain Loss On Investment Securities
115,000
-7,000
Net Income From Continuing Operations
1,035,000
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: $5.0B▼ $4.5B-10.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Net Margin
Prior year: 27.1%▼ 23.3%-3.9pp
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.
$4.5B/qtr (≈$17.8B 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.
$1.7B
vs Positive
Operating Cash Flow
$1.8B
Latest quarter · Buffett's cash reality check
ROIC
N/A
Based on latest annual operating income
Market Cap / Net Assets
1.5x
Net Assets: $23.0B
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
2.92%
Low — management has little skin in the game
Return on Equity (ROE)
4.7%
Weak — poor returns on equity
Return on Assets (ROA)
1.2%
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
0.704% of net income
Maamoun Jamil Rajeh
President
Age 55
Pay: $4,826,231
0.466% of net income
Francois Morin
Executive VP, CFO & Treasurer
Age 58
Pay: $3,721,770
0.360% of net income
Prashant Nema
Executive VP & COO
Linda Marie Fallon
Executive Vice President of Travel, Accident & Health of Arch Insurance North America
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.86%
30,220,703
Vanguard Capital Management LLC
6.51%
22,221,428
Artisan Partners Limited Partnership
6.33%
21,595,895
State Street Corporation
4.76%
16,251,212
BAMCO Inc.
4.65%
15,872,450
Vanguard Portfolio Management LLC
4.26%
14,527,363
WCM Investment Management, LLC
3.51%
11,973,574
Geode Capital Management, LLC
3.08%
10,507,722
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.19
Low volatility — more stable than the market
Short Interest
3.2% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.19x
Conservative balance sheet — low financial risk
Current Ratio
0.58x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $87.05Current: $107.28High: $113.63
Currently at 76% of 52-week range
Arch Capital Group Ltd. (ACGL) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $67.79. Margin of safety: 0%. Gross profit margin: N/A. Operating margin: N/A. Net margin: 23.3%. Market cap: $34.9B. Sector: Financial Services. Industry: Insurance - Diversified. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.