Arch Capital Group

ACGL

Insurance - Diversified · Financial Services

Price

$99.39

+0.08 (+0.08%)

Market Cap

$34.73B

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

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Share count falling — buybacks

−6.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 400.3M (2021) → 376.1M (2025)

Winston Score History

The full picture

Arch Capital Group is a Bermuda-based insurance and reinsurance company that helps other businesses and individuals manage financial risk. Its three main business lines are insurance, reinsurance, and mortgage insurance — covering things like property damage, liability, and home loan defaults. The company sells these products to corporations, other insurers, and mortgage lenders primarily in the United States, Europe, and other global markets.

Arch makes money by collecting premiums from customers and investing those funds, earning returns before claims are paid out. It operates globally with a market cap around $35 billion, and its Bermuda headquarters gives it certain tax and regulatory advantages common among specialty insurers. Its mortgage insurance segment, which protects lenders when homeowners default, has been a strong profit driver but also ties the company's results closely to the health of the US housing market — making rising mortgage delinquencies one of the key risks to watch.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-7.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

2.7%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$51.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Arch Capital Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

-0.7%

Thin — -0.7% gross margin

Profit after running costs

Operating Margin

1.0%

Thin — 1.0% operating margin

Return on the money invested

ROCE

14.4%

Good — 14.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+0.7%

Nearly flat sales (+0.7% YoY)

Profit growth

EPS YoY

+30.8%

Earnings growing fast (+30.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

130%

Turns 130% of profit into real cash

Spare cash per sale

FCF Margin

31.5%

Converts sales into free cash efficiently (31.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.18

Conservative — low debt load (0.18)

Covers its interest

Interest Cover

26.16x

Comfortably covers interest (26.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

7.7x

Attractive valuation — P/E 7.7

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-3.5

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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