Arch Capital Stock Fair Value – ARCH CAPITAL Reports 37.6% Increase in Revenue for Q2 of 2023, Totaling USD 3088.0 Million
August 26, 2023
☀️Earnings Overview
ARCH CAPITAL ($NASDAQ:ACGL) reported total revenue for Q2 of 2023, ending June 30, of USD 3088.0 million, an increase of 37.6% compared to the same period of the previous year. Additionally, net income rose by 65.9% to USD 671.0 million.
Analysis – Arch Capital Stock Fair Value
GoodWhale conducted an analysis of ARCH CAPITAL‘s financials and calculated the fair value of its stock to be around $60.9. This was determined using our proprietary Valuation Line. Currently, ARCH CAPITAL’s stock is being traded at $82.1, which indicates that it is currently overvalued by 34.7%. While this overvaluation may be attractive for investors looking to capitalize on gains, they should be aware of the risks associated with investing in stocks that are priced higher than their fair value. As such, investors should be sure to research the company thoroughly and consider all the risks before making any investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arch Capital. More…
| Total Revenues | Net Income | Net Margin |
| 11.69k | 2.22k | 19.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arch Capital. More…
| Operations | Investing | Financing |
| 4.48k | -4.29k | -68.61 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arch Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 53.86k | 39.21k | 39.31 |
Key Ratios Snapshot
Some of the financial key ratios for Arch Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.0% | – | 21.1% |
| FCF Margin | ROE | ROA |
| 37.8% | 10.8% | 2.9% |
Peers
The company’s segments include Property and Casualty, Mortgage, and Title. Arch Capital Group Ltd’s competitors include UNIQA Insurance Group AG, American National Group Inc, and Old Republic International Corp.
– UNIQA Insurance Group AG ($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‘s financial performance in Q2 of 2023 was impressive, with total revenue increasing by 37.6% from the same period a year ago. Net income rose to USD 671 million, an increase of 65.9%. This indicates a strong recovery from the pandemic and shows the company is in a good financial position to continue to grow and expand its product offerings. Investors should keep an eye on ARCH CAPITAL’s performance to ensure their continued success and potential for long-term returns.
