Arch Capital Group Ltd. [NASDAQ:ACGL]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Arch Capital Group Ltd. [ACGL], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give ACGL an Hold rating. The average 12-month price forecast for this stock is $32.23, with the high estimate being $40.00, the low estimate being $28.00 and the median estimate amounting to $32.00. This is compared to its latest closing price of $26.77.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Arch Capital Group Ltd. [ACGL] is sitting at 2.56. This is compared to 1 month ago, when its average rating was 2.56.
For the quarter ending in Sep-18 Arch Capital Group Ltd. [ACGL] generated $1.33 billion in sales. That’s 1.56% lower than the average estimate of $1.35 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 12 Feb (In 32 Days).
Fundamental Analysis of Arch Capital Group Ltd. [ACGL]
Now let’s turn to look at profitability: with a current Operating Margin for Arch Capital Group Ltd. [ACGL] sitting at +16.02, this company’s Net Margin is now 14.50%. These measurements indicate that Arch Capital Group Ltd. [ACGL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 7.04, and its Return on Invested Capital has reached 7.10%. Its Return on Equity is 7.02, and its Return on Assets is 1.99. These metrics suggest that this Arch Capital Group Ltd. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Arch Capital Group Ltd. [ACGL] has generated a Total Debt to Total Equity ratio of 27.72. Similarly, its Total Debt to Total Capital is 21.70, while its Total Debt to Total Assets stands at 7.95. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 32.54, and its Long-Term Debt to Total Capital is 21.70. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.73. The Enterprise Value to Sales for this firm is now 2.30, and its Total Debt to Enterprise Value stands at 0.14. Arch Capital Group Ltd. [ACGL] has a Price to Book Ratio of 1.52, a Price to Cash Flow Ratio of 11.36 and P/E Ratio of 14.25. These metrics all suggest that Arch Capital Group Ltd. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Arch Capital Group Ltd. [ACGL] earns $1,721,682 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.18. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 0.66.
Let’s now turn our attention to trading performance: Arch Capital Group Ltd. [ACGL] has 401.66M shares outstanding, amounting to a total market cap of $10.89B. Its stock price has been found in the range of 24.79 to 31.59. At its current price, it has moved by -14.16% from its 52-week high, and it has moved 9.40% from its 52-week low.
This stock’s Beta value is currently 0.63, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.71. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Arch Capital Group Ltd. [ACGL] a Reliable Buy?
Arch Capital Group Ltd. [ACGL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.