RLI CORP (RLI)
US7496071074 - Common Stock
RLI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 139 industry peers in the Insurance industry. RLI scores excellent on profitability, but there are some minor concerns on its financial health. RLI is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RLI was profitable.
In the past year RLI had a positive cash flow from operations.
In the past 5 years RLI has always been profitable.
Each year in the past 5 years RLI had a positive operating cash flow.
1.2 Ratios
RLI has a better Return On Assets (7.24%) than 92.70% of its industry peers.
RLI's Return On Equity of 24.00% is amongst the best of the industry. RLI outperforms 89.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.89%, RLI belongs to the top of the industry, outperforming 86.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 24% | ||
| ROIC | 6.89% |
ROA(3y)8.11%
ROA(5y)6.74%
ROE(3y)31.28%
ROE(5y)25.38%
ROIC(3y)8.32%
ROIC(5y)6.76%
1.3 Margins
With an excellent Profit Margin value of 23.82%, RLI belongs to the best of the industry, outperforming 91.97% of the companies in the same industry.
In the last couple of years the Profit Margin of RLI has grown nicely.
RLI has a Operating Margin of 26.93%. This is amongst the best in the industry. RLI outperforms 89.05% of its industry peers.
In the last couple of years the Operating Margin of RLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.93% | ||
| PM (TTM) | 23.82% | ||
| GM | N/A |
OM growth 3Y11.24%
OM growth 5Y27.94%
PM growth 3Y8.05%
PM growth 5Y20.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RLI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RLI has been increased compared to 1 year ago.
RLI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RLI has been reduced compared to a year ago.
2.2 Solvency
There is no outstanding debt for RLI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC8.96%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.03%, which is quite impressive.
Measured over the past years, RLI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.12% on average per year.
The Revenue has grown by 22.38% in the past year. This is a very strong growth!
RLI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)31.03%
EPS 3Y23.86%
EPS 5Y19.12%
EPS Q2Q%114.75%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y15.41%
Revenue growth 5Y13.06%
Sales Q2Q%19.96%
3.2 Future
The Earnings Per Share is expected to grow by 10.89% on average over the next years. This is quite good.
Based on estimates for the next years, RLI will show a quite strong growth in Revenue. The Revenue will grow by 8.60% on average per year.
EPS Next Y20.53%
EPS Next 2Y14.5%
EPS Next 3Y10.89%
EPS Next 5YN/A
Revenue Next Year13.86%
Revenue Next 2Y9.88%
Revenue Next 3Y8.6%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.75 indicates a quite expensive valuation of RLI.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than the industry average as 67.15% of the companies are valued more cheaply.
RLI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.94.
The Price/Forward Earnings ratio is 25.68, which means the current valuation is very expensive for RLI.
75.18% of the companies in the same industry are cheaper than RLI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, RLI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
RLI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RLI is valued a bit more expensive than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
RLI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RLI may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)1.35
EPS Next 2Y14.5%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
RLI has a yearly dividend return of 0.74%, which is pretty low.
RLI's Dividend Yield is slightly below the industry average, which is at 4.90.
With a Dividend Yield of 0.74, RLI pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of RLI is nicely growing with an annual growth rate of 10.39%!
RLI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RLI pays out 33.96% of its income as dividend. This is a sustainable payout ratio.
The dividend of RLI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.96%
EPS Next 2Y14.5%
EPS Next 3Y10.89%
RLI CORP
NYSE:RLI (11/7/2024, 8:04:00 PM)
After market: 166.34 0 (0%)166.34
-0.98 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 25.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.25
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.93% | ||
| PM (TTM) | 23.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.03%
EPS 3Y23.86%
EPS 5Y
EPS Q2Q%
EPS Next Y20.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.38%
Revenue growth 3Y15.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y