Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Arch Capital Group Ltd.

ACGL · Nasdaq · Financial

Fundamental quality

EXCELLENT

90

out of 100

Arch Capital Group Ltd. fits the profile of a quality compounder: it pairs high return on capital (ROE 19.5%) with wide margins (net margin 24.4%) and a business that keeps growing (16% a year). On fundamental quality it scores 90 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Arch Capital is a Bermuda insurer and reinsurer with a sharpshooter's reputation: it enters and exits each business line by the price of risk, married to none. Specialty insurance, reinsurance and a countercyclical jewel: American mortgage insurance.

What will shape its future

  • Cycle discipline: underwriting heavily when prices are hard, retreating when they soften.
  • Catastrophes, every reinsurer's annual exam.
  • Mortgage insurance, the stable leg others lack.

Breakdown by area

I.Growth
86

EPS growth: 27.8% · Revenue growth: 16%

II.Profitability
88

Net margin: 24.4% · ROE: 19.5%

III.Financial health
95

FCF: 31.5%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 68%
ROEbeats 70%
Growthbeats 80%
Cash generationbeats 77%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Arch Capital Group Ltd. strengths

  • Excellent free-cash-flow generation (FCF margin of 31.5%): profit turns into real cash.
  • Growing earnings per share (27.8% annualized).
  • High net margin (24.4%): the business is clearly profitable.
  • Strong return on equity (ROE of 19.5%): it puts shareholder capital to good use.

Arch Capital Group Ltd. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Arch Capital Group Ltd. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20208,5091,4062,847-906
20219,2482,1573,384-859
20229,6131,4763,766-855
202313,6344,4435,697-917
202417,4404,3126,622-979
202519,9294,3996,128-993

Between 2020 and 2025, revenue went from $8,509M to $19,929M (+134%) and net income went from $1,406M to $4,399M (+213%). Meanwhile, its margins have widened (from 17% to 22%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue-7.1%
  • Net income+16.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score9190
  • FCF margin29.6%31.5%
  • Revenue growth17.4%16%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$5

per share, yearly

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Arch Capital Group Ltd. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Arch Capital Group Ltd. a good company to invest in?

In terms of business quality, Arch Capital Group Ltd. scores 90 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Arch Capital Group Ltd. a profitable company?

Very. Arch Capital Group Ltd. shows a net margin of 24.4% and an ROE of 19.5%, typical of a highly profitable business.

Is Arch Capital Group Ltd. growing?

Its revenue has grown 16% annualized in recent years and its earnings per share 27.8%, and without interruption since 2020.

Does Arch Capital Group Ltd. generate cash?

Yes. It converts about 31.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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