ACGLNEUTRAL

ACGL Gross Margin Analysis

52.1%

Higher than 29% of Financial Services sector peers

Updated 2959h ago·SEC filings & market data

Key Takeaway

Arch Capital’s gross margin of 52.1% means that for every dollar of revenue, the company keeps about 52 cents after covering the direct costs of providing its insurance and reinsurance services.

Sector Performance

29th percentile

ACGL

52.1%

Sector Median

68.5%

Sector Avg

69.1%

Prior Period

-0.7%(Apr 2026)

↑ Improving

📊

Deep Analysis

Arch Capital’s gross margin of 52.1% means that for every dollar of revenue, the company keeps about 52 cents after covering the direct costs of providing its insurance and reinsurance services.

That figure is well below the sector median of 76.6%, placing the company at the 23rd percentile among its financial services peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a below-median margin and no upward movement signals limited pricing power or cost advantage, which dampens return potential but also reduces the risk of sudden margin deterioration. This stable but low-level margin does not present a clear catalyst for outperformance or an immediate red flag. It therefore aligns with the overall NEUTRAL verdict on the stock, neither supporting a bullish nor a bearish case on its own.

Frequently Asked Questions

What does the Gross Margin tell investors about ACGL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ACGL's Gross Margin compare to its sector?

ACGL's Gross Margin of 52.1% compares to a Financial Services sector median of 68.5%, placing it in the 29th percentile.

Who are ACGL's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), IBN (73.6%), CACC (63.0%), HDB (58.4%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.