Accelerant Holdings Fundamental Analysis (NYSE: ARX)
Accelerant Holdings Fundamental Analysis (NYSE: ARX)
Accelerant Holdings (NYSE: ARX) shows weak financial fundamentals with a PE ratio of 75.37, profit margin of 5.84%, and ROE of 8.54%. The company generates $1.0B in annual revenue with strong year-over-year growth of 47.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARX's fundamental strength across five key dimensions:
Efficiency Score
WeakARX struggles to generate sufficient returns from assets.
Valuation Score
ModerateARX shows balanced valuation metrics.
Growth Score
ModerateARX shows steady but slowing expansion.
Financial Health Score
ModerateARX shows balanced financial health with some risks.
Profitability Score
WeakARX struggles to sustain strong margins.
Key Financial Metrics
Is ARX Expensive or Cheap?
P/E Ratio
ARX trades at 75.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARX's PEG of 0.71 indicates potential undervaluation.
Price to Book
The market values Accelerant Holdings at 5.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 55.15 times EBITDA. This signals the market has high growth expectations.
How Well Does ARX Make Money?
Net Profit Margin
For every $100 in sales, Accelerant Holdings keeps $5.84 as profit after all expenses.
Operating Margin
Core operations generate 5.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.54 in profit for every $100 of shareholder equity.
ROA
Accelerant Holdings generates $0.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Accelerant Holdings generates strong operating cash flow of $292.92M, reflecting robust business health.
Free Cash Flow
Accelerant Holdings generates strong free cash flow of $281.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.30 in free cash annually.
FCF Yield
ARX converts 6.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
75.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How ARX Stacks Against Its Sector Peers
| Metric | ARX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 75.37 | 20.31 | Worse (Expensive) |
| ROE | 8.54% | 615.00% | Weak |
| Net Margin | 5.84% | 666.00% | Weak |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 800.80 | Weak Liquidity |
| ROA | 0.64% | -76.00% (disorted) | Weak |
ARX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Accelerant Holdings's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
627.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-5279.20%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
237.32%
Industry Style: Value, Dividend, Cyclical
High Growth