Arch Capital Stock Fair Value – ARCH CAPITAL Reports Q2 Fiscal Year 2023 Earnings Results
August 4, 2023
🌥️Earnings Overview
On July 26, 2023, ARCH CAPITAL ($NASDAQ:ACGL) announced their earnings results for the second quarter of fiscal year 2023, which ended on June 30, 2023. The total revenue for the quarter was USD 3088.0 million, a 37.6% increase from the same quarter in the prior year. Net income was reported at USD 671.0 million, reflecting a 65.9% increase from the same period in the previous year.
Market Price
The stock opened at $81.3 and closed at $82.1, representing a 0.9% increase from its previous closing price of 81.4. The company released its earnings report, which showed strong growth in revenue due to increased demand for its products and services. Overall, the earnings report showed positive results for ARCH CAPITAL, which has seen strong growth in recent years.
The company is expected to continue to benefit from its diverse portfolio of products and services, as well as from increased demand for its offerings. Investors can look forward to further upside potential as the company continues to expand and grow in the near future. 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 Stock Fair Value
At GoodWhale, we have conducted an analysis of ARCH CAPITAL‘s fundamentals and have concluded that the intrinsic value of its share is around $60.4, which we have determined using our proprietary Valuation Line. However, ARCH CAPITAL’s stock is currently trading at $82.1, giving it an overvaluation of 36.0%. Therefore, investors interested in this stock should be aware of this discrepancy between the current trading price and the estimated intrinsic value. More…
Peers
The company’s segments include Property and Casualty, Mortgage, and Title. Arch Capital Group Ltd’s competitors include UNIQA Insurance Group AG, American National Group Inc, and Old Republic International Corp.
– UNIQA Insurance Group AG ($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 reported impressive earnings results for the second quarter of FY2023, with total revenue of USD 3088.0 million, up 37.6% year-over-year, and net income reaching USD 671.0 million, up 65.9% year-over-year. These results indicate strong profitability and growth opportunities in the company, making it an attractive prospect for investors. The company continues to demonstrate its commitment to delivering value, with steady earnings growth and favorable returns on investments. This combined with a strong balance sheet and aggressive cost management makes ARCH CAPITAL an attractive investment for investors looking for long term growth.
