Accelerant Holdings
Accelerant Holdings Fundamental Analysis
Accelerant Holdings (ARX) shows moderate financial fundamentals with a PE ratio of -1.52, profit margin of -1.70%, and ROE of -2.94%. The company generates $0.9B in annual revenue with strong year-over-year growth of 79.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -369.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
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
ExcellentARX trades at attractive valuation levels.
Growth Score
ModerateARX shows steady but slowing expansion.
Financial Health Score
ExcellentARX maintains a strong and stable balance sheet.
Profitability Score
WeakARX struggles to sustain strong margins.
Key Financial Metrics
Is ARX Expensive or Cheap?
P/E Ratio
ARX trades at -1.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARX's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Accelerant Holdings at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.45 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 $-1.70 as profit after all expenses.
Operating Margin
Core operations generate 18.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.94 in profit for every $100 of shareholder equity.
ROA
Accelerant Holdings generates $-17.86 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 $672.59M, reflecting robust business health.
Free Cash Flow
Accelerant Holdings generates strong free cash flow of $662.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.99 in free cash annually.
FCF Yield
ARX converts 27.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
24.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.94
vs 25 benchmark
ROA
Return on assets percentage
-0.18
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ARX Stacks Against Its Sector Peers
| Metric | ARX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.52 | 18.86 | Better (Cheaper) |
| ROE | -293.98% | 847.00% | Weak |
| Net Margin | -170.42% | 4202.00% | Weak |
| Debt/Equity | 0.18 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 24.19 | 667.17 | Strong Liquidity |
| ROA | -17.86% | -21543.00% (disorted) | Weak |
ARX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
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
454.63%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
223.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
582.36%
Industry Style: Value, Dividend, Cyclical
High Growth