Reasonable growth and debt and a high ROIC for RLI CORP (NYSE:RLI).

In this article we will dive into RLI CORP (NYSE:RLI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed RLI CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• RLI CORP has shown strong performance in revenue growth over the past 5 years, with a 16.25% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of RLI CORP stands at 19.14%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 0.63, RLI CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 162.0%, RLI CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• RLI CORP has consistently achieved strong EBIT growth over the past 5 years, with a 56.16% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• RLI CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:RLI

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall RLI gets a fundamental rating of 5 out of 10. We evaluated RLI against 142 industry peers in the Insurance industry. RLI has an excellent profitability rating, but there are some minor concerns on its financial health. RLI is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of RLI for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.