Arch Capital Group Ltd. Depositary Shares each Representing a 1/1000th Interest in a 4.550% Non-Cumulative Preferred Share Series G (ACGLN)

FairStock Score: 91/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at ACGLN not as common equity but as a preferred claim on Arch Capital, an insurer and reinsurer. The underlying company has been a strong profit engine. In FY2025, filed results show revenue of $19.9B, net income of $4.4B, and diluted EPS of $11.60; FY2024 was $17.4B, $4.3B, and $11.19; FY2023 was $13.6B, $4.4B, and $11.62. More recently, fiscal Q2 2026, ended 2026-06-30, produced revenue of $4.7B, net income of $1.1B, and diluted EPS of $3.00. That is still a lot of earning power. FairStock's calculations show ROE of 19.94%, debt-to-equity of 0.18, and a common P/B of 0.22 and P/E of 3.21 at the 2026-10-13 close of $15.05. Those are attractive if they hold, but the recent revenue and profit growth figures are negative, -9.73% and -14.55%, and the Piotroski F-Score is 4/9, so the trend is not flawless. For the preferred, the key is not the common P/E but the company's ability to service a non-cumulative 4.550% dividend. The 7.52% yield looks generous, and the 52-week range of $14.75 to $18.11 puts the price near the low end. Insurance is commodity-like and cyclical, though Arch's diversified insurance, reinsurance, and mortgage segments give it some moat. FairStock labels it a FAST GROWER based on five-year profit growth of 25.6% and revenue growth of 18.6%, but recent filings show a slowdown. I cannot check combined ratio, CET1, or NIM from this data. On balance, a sound operator with a high-yield preferred, but I would want underwriting and reserve discipline to remain intact.

In plain English: Arch Capital is an insurance and reinsurance company. Its preferred shares pay a set dividend and depend on the company's ability to keep earning profits. The underlying business is profitable and uses modest debt, but revenue and profit have recently slipped, and the preferred shares are priced near the low end of their yearly range, so the high income comes with some risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer