Is Arch Capital Stock a Good Investment?
Arch Capital Investment Advice | ACGL |
- Examine Arch Capital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Arch Capital's leadership team and their track record. Good management can help Arch Capital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Property & Casualty Insurance space and any emerging trends that could impact Arch Capital's business and its evolving consumer preferences.
- Compare Arch Capital's performance and market position to its competitors. Analyze how Arch Capital is positioned in terms of product offerings, innovation, and market share.
- Check if Arch Capital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Arch Capital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Arch Capital Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Arch Capital Group is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Arch Capital Stock
Researching Arch Capital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.76. Some equities with similar Price to Book (P/B) outperform the market in the long run. Arch Capital Group has Price/Earnings To Growth (PEG) ratio of 2.24. The entity recorded earning per share (EPS) of 14.9. The firm last dividend was issued on the 18th of November 2024. Arch Capital had 3:1 split on the 21st of June 2018.
To determine if Arch Capital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Arch Capital's research are outlined below:
| Arch Capital Group generated a negative expected return over the last 90 days | |
| Arch Capital Group is unlikely to experience financial distress in the next 2 years | |
| Over 90.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from simplywall.st: Heres Why We Think Arch Capital Group Is Well Worth Watching |
Arch Capital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Arch Capital Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Arch Capital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Arch Capital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Arch Capital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-11-06 | 2002-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2002-08-09 | 2002-06-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2002-05-14 | 2002-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2009-02-17 | 2008-12-31 | 0.14 | 0.16 | 0.02 | 14 | ||
2005-04-28 | 2005-03-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2004-04-28 | 2004-03-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2004-02-17 | 2003-12-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2003-08-04 | 2003-06-30 | 0.08 | 0.1 | 0.02 | 25 |
Know Arch Capital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Arch Capital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Arch Capital Group backward and forwards among themselves. Arch Capital's institutional investor refers to the entity that pools money to purchase Arch Capital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 4.9 M | Norges Bank | 2024-06-30 | 4.6 M | Nuveen Asset Management, Llc | 2024-06-30 | 4.4 M | Northern Trust Corp | 2024-09-30 | 4.4 M | Amvescap Plc. | 2024-06-30 | 4.3 M | Madison Asset Management, Llc | 2024-09-30 | 4.2 M | Wellington Management Company Llp | 2024-06-30 | 4.2 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 4 M | Legal & General Group Plc | 2024-06-30 | 3.5 M | Vanguard Group Inc | 2024-09-30 | 41.8 M | Blackrock Inc | 2024-06-30 | 32.2 M |
Arch Capital's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 37.78 B.Market Cap |
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Arch Capital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.08 | 0.08 | |
| Return On Capital Employed | 0.23 | 0.24 | |
| Return On Assets | 0.08 | 0.08 | |
| Return On Equity | 0.24 | 0.25 |
Determining Arch Capital's profitability involves analyzing its financial statements and using various financial metrics to determine if Arch Capital is a good buy. For example, gross profit margin measures Arch Capital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Arch Capital's profitability and make more informed investment decisions.
Evaluate Arch Capital's management efficiency
Arch Capital Group has return on total asset (ROA) of 0.0486 % which means that it generated a profit of $0.0486 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3044 %, meaning that it created $0.3044 on every $100 dollars invested by stockholders. Arch Capital's management efficiency ratios could be used to measure how well Arch Capital manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is expected to rise to 0.08 this year. Return On Capital Employed is expected to rise to 0.24 this year. At this time, Arch Capital's Other Current Assets are quite stable compared to the past year. Return On Tangible Assets is expected to rise to 0.08 this year, although the value of Net Tangible Assets will most likely fall to about 8.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 49.78 | 52.27 | |
| Tangible Book Value Per Share | 47.80 | 50.19 | |
| Enterprise Value Over EBITDA | 8.75 | 9.19 | |
| Price Book Value Ratio | 1.49 | 0.86 | |
| Enterprise Value Multiple | 8.75 | 9.19 | |
| Price Fair Value | 1.49 | 0.86 | |
| Enterprise Value | 22.5 B | 23.6 B |
At Arch Capital Group, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Forward Dividend Yield 0.0523 | Beta 0.613 |
Basic technical analysis of Arch Stock
As of the 28th of November, Arch Capital shows the risk adjusted performance of (0.01), and Mean Deviation of 1.23. Arch Capital Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Arch Capital Group standard deviation, as well as the relationship between the maximum drawdown and kurtosis to decide if Arch Capital Group is priced correctly, providing market reflects its regular price of 100.74 per share. Given that Arch Capital has information ratio of (0.09), we suggest you to validate Arch Capital Group's prevailing market performance to make sure the company can sustain itself at a future point.Arch Capital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Arch Capital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Arch Capital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Arch Capital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Arch Capital's Outstanding Corporate Bonds
Arch Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Arch Capital Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Arch bonds can be classified according to their maturity, which is the date when Arch Capital Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Arch Capital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Arch Capital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (4,611) | |||
| Standard Deviation | 1.79 | |||
| Variance | 3.21 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.33) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 9.16 | |||
| Value At Risk | (2.74) | |||
| Potential Upside | 2.05 | |||
| Skewness | (0.77) | |||
| Kurtosis | 3.81 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (4,611) | |||
| Standard Deviation | 1.79 | |||
| Variance | 3.21 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.33) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 9.16 | |||
| Value At Risk | (2.74) | |||
| Potential Upside | 2.05 | |||
| Skewness | (0.77) | |||
| Kurtosis | 3.81 |
Consider Arch Capital's intraday indicators
Arch Capital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Arch Capital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 11508.82 | |||
| Daily Balance Of Power | 0.2797 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 101.07 | |||
| Day Typical Price | 100.96 | |||
| Price Action Indicator | (0.17) | |||
| Period Momentum Indicator | 0.33 |
Arch Capital Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 14th of November 2024 Other Reports | ViewVerify | |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Arch Stock media impact
Far too much social signal, news, headlines, and media speculation about Arch Capital that are available to investors today. That information is available publicly through Arch media outlets and privately through word of mouth or via Arch internal channels. However, regardless of the origin, that massive amount of Arch data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Arch Capital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Arch Capital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Arch Capital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Arch Capital alpha.
Arch Capital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Arch Capital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Arch Capital Group Historical Investor Sentiment
Investor biases related to Arch Capital's public news can be used to forecast risks associated with an investment in Arch. The trend in average sentiment can be used to explain how an investor holding Arch can time the market purely based on public headlines and social activities around Arch Capital Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Arch Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arch Capital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Arch Capital news discussions. The higher the estimate score, the more favorable the investor's outlook on Arch Capital.
Arch Capital Corporate Management
| Christopher Hovey | Chief Officer | Profile | |
| Prashant Nema | Chief Officer | Profile | |
| Greg Hare | Chief Officer | Profile | |
| Debra OConnor | Executive LLC | Profile |
Already Invested in Arch Capital Group?
The danger of trading Arch Capital Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Arch Capital is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Arch Capital. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Arch Capital Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Arch Capital Group is a strong investment it is important to analyze Arch Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arch Capital's future performance. For an informed investment choice regarding Arch Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arch Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arch Capital. If investors know Arch will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arch Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.362 | Earnings Share 14.9 | Revenue Per Share 45.387 | Quarterly Revenue Growth 0.418 | Return On Assets 0.0486 |
The market value of Arch Capital Group is measured differently than its book value, which is the value of Arch that is recorded on the company's balance sheet. Investors also form their own opinion of Arch Capital's value that differs from its market value or its book value, called intrinsic value, which is Arch Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arch Capital's market value can be influenced by many factors that don't directly affect Arch Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Arch Capital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Arch Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arch Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.