Arch Capital Intrinsic Value – ARCH CAPITAL Reports Q2 Fiscal Year 2023 Earnings Results on June 30th 2023
August 29, 2023
🌥️Earnings Overview
ARCH CAPITAL ($NASDAQ:ACGL) reported total revenue of USD 3088.0 million for the second quarter of its fiscal year 2023 on June 30th 2023, a 37.6% increase from the same period in the previous year. Net income was reported to be USD 671.0 million, a remarkable 65.9% year-over-year increase.
Share Price
On the same day, the stock opened at $81.3 and closed at $82.1, a slight 0.9% increase from its prior day’s closing price of 81.4. This increase in stock price indicates that investors are optimistic about the company’s performance. With the report of its Q2 earnings, ARCH CAPITAL has succeeded in maintaining its steady growth and meeting investors’ expectations. Investors should be pleased with the company’s consistent performance and have confidence that ARCH CAPITAL’s strategy for long-term success is working. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arch Capital. More…
| Total Revenues | Net Income | Net Margin |
| 11.69k | 2.22k | 19.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arch Capital. More…
| Operations | Investing | Financing |
| 4.48k | -4.29k | -68.61 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arch Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 53.86k | 39.21k | 39.31 |
Key Ratios Snapshot
Some of the financial key ratios for Arch Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.0% | – | 21.1% |
| FCF Margin | ROE | ROA |
| 37.8% | 10.8% | 2.9% |
Analysis – Arch Capital Intrinsic Value
At GoodWhale, we have conducted an analysis of ARCH CAPITAL‘s wellbeing, and the results are very encouraging. Our proprietary Valuation Line has calculated a fair value of ARCH CAPITAL’s share at around $60.9. Currently, the stock is being traded at $82.1, which is overvalued by 34.7%. This is a great sign that the stock is being sought after and that investors are confident in the company’s future performance. Ultimately, this means that ARCH CAPITAL has seen a strong increase in its stock price, making it a great option for potential investors. More…
Peers
The company’s segments include Property and Casualty, Mortgage, and Title. Arch Capital Group Ltd’s competitors include UNIQA Insurance Group AG, American National Group Inc, and Old Republic International Corp.
– UNIQA Insurance Group AG ($LTS:0GDR)
UNIQA Insurance Group AG is a European insurance group with operations in Austria, Croatia, the Czech Republic, Hungary, Romania, Slovakia, and Switzerland. The company offers a wide range of insurance products, including property and casualty, life, and health insurance. UNIQA has a strong focus on customer service and offers a wide range of digital channels for customer interaction. The company’s return on equity was 10.93% in 2020.
– American National Group Inc ($NYSE:ORI)
Republic International Corporation is a holding company that, through its subsidiaries, engages in the life and health insurance, and reinsurance businesses. It operates through the following segments: Individual Life, Group Life and Health, International Life, and Other. The Individual Life segment offers whole life, term life, universal life, and annuity products. The Group Life and Health segment provides group life, health, and disability products. The International Life segment offers life insurance products. The Other segment comprises of investment management, corporate-owned life insurance, and mortgage insurance businesses. The company was founded by Harrison E. Kline in 1940 and is headquartered in Columbus, OH.
Summary
ARCH CAPITAL has shown great financial performance in the second quarter of 2023, with a 37.6% increase in total revenue compared to the same period of the previous year. Net income also rose by 65.9%, making it an attractive investment option for investors. ARCH CAPITAL shares have been trading at a high price due to strong earnings results and investors are optimistic about its future growth prospects. A thorough analysis would be required to determine whether the stock is a good buy at current prices.
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