EPS growth is an important number as it indicates the future prospects of Arch Capital Group. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 6.00 % over the last twelve months. EPS growth is a vital measure of execution of the strategy for Arch Capital Group since it indicates how well the business is allocating resources to benefit shareholders.



Arch Capital Group is in the financial services sector and insurance industry. The company CEO is Marc Grandisson. Arch Capital Group provides insurance, reinsurance and mortgage. It provides property, casualty and mortgage insurance and reinsurance lines, and focus on writing specialty lines of insurance and reinsurance.

Previous Intraday Performance:

The ACGL shares had a previous change of 0.85% which opened at 28.45 and closed at 28.62. It moved to an intraday high of 28.73 and a low of 28.41.

Business Wire:  Arch Insurance to Acquire McNeil & Co.

Historical Performance:

Over the last five trading days, ACGL shares returned 1.63% and in the past 30 trading days it returned 3.28%. Over three months, it changed -8.09%. In one year it has changed -10.82% and within that year its 52-week high was 31.73 and its 52-week low was 25.71. ACGL stock is 11.33% above its 52 Week Low.

Our calculations result in a 200 day moving average of 28.35 and a 50 day moving average of 28.27. Right now, ACGL stock is trading 0.96% above its 200 day moving average and may be a good opportunity to buy.

Business Wire:  Arch Insurance to Acquire McNeil & Co.

Liquidity:

The company has a market cap of $11.6b with 404.7m shares outstanding and a float of 401.5m shares. Trading volume was 2,792,642 shares and has experienced an average volume of 1,110,683 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Arch Capital Group was 1.36 which ended on 31st of December 2017, which according to the previous close, that is a PE of 21.04. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.52. The trailing twelve month EPS is 2.19, which comes to a trailing twelve month PE of 13.07. Historically, the PE high was 66.70 and the PE low was 9.60. If the stock reached its PE low, that would represent a price of 21.02, which is a decrease of -26.55%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.59
06-30-2018:  0.59
03-31-2018:  0.56
12-31-2017:  0.45

Base on our calculations, the intrinsic value per share is 29.80, which means it might be undervalued and has a margin of safety of 3.95%



Indicators Also to Watch:

Based on the latest filings, there is 81.00% of institutional ownership. Short-interest was 0, which was 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio was 0.00.

I calculated the beta to be 0.67

SeekingAlpha:  Apellis Pharma down 17% on hiccup in late-stage study of APL-2

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 9.80%, return on assets is 2.45%, profit margin is 15.88%, price-to-sales is 2.11 and price-to-book is 1.35.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 4  : Financial Safety Result
 4  : Past Performance Result
 3  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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