RLI CORP (RLI)
US7496071074 - Common Stock
We assign a fundamental rating of 6 out of 10 to RLI. RLI was compared to 144 industry peers in the Insurance industry. RLI has an excellent profitability rating, 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.
RLI had a positive operating cash flow in the past year.
RLI had positive earnings in each of the past 5 years.
RLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RLI (7.24%) is better than 86.62% of its industry peers.
With an excellent Return On Equity value of 24.00%, RLI belongs to the best of the industry, outperforming 85.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.89%, RLI belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RLI is above the industry average of 4.61%.
| 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
Looking at the Profit Margin, with a value of 23.82%, RLI belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
In the last couple of years the Profit Margin of RLI has grown nicely.
With an excellent Operating Margin value of 26.93%, RLI belongs to the best of the industry, outperforming 90.85% of the companies in the same industry.
RLI's Operating Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, RLI has more shares outstanding
RLI has a better debt/assets ratio than last year.
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/WACC0.74
WACC9.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.03% over the past year.
The Earnings Per Share has been growing by 19.12% on average over the past years. This is quite good.
RLI shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.38%.
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
RLI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
The Revenue is expected to grow by 8.67% on average over the next years. This is quite good.
EPS Next Y20.54%
EPS Next 2Y14.26%
EPS Next 3Y10.63%
EPS Next 5Y10.34%
Revenue Next Year12.49%
Revenue Next 2Y9.75%
Revenue Next 3Y8.67%
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
RLI is valuated rather expensively with a Price/Earnings ratio of 23.69.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than the industry average as 70.42% of the companies are valued more cheaply.
RLI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
RLI is valuated rather expensively with a Price/Forward Earnings ratio of 23.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RLI indicates a slightly more expensive valuation: RLI is more expensive than 72.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RLI to the average of the S&P500 Index (23.53), we can say RLI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 23.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RLI is on the same level as its industry peers.
RLI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
RLI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RLI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.15
PEG (5Y)1.24
EPS Next 2Y14.26%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
RLI has a yearly dividend return of 0.76%, which is pretty low.
RLI's Dividend Yield is slightly below the industry average, which is at 3.13.
With a Dividend Yield of 0.76, RLI pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of RLI grows each year by 10.39%, which is quite nice.
RLI has paid a dividend for at least 10 years, which is a reliable track record.
RLI has decreased its dividend recently.
Dividend Growth(5Y)10.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RLI pays out 33.96% of its income as dividend. This is a sustainable payout ratio.
RLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.96%
EPS Next 2Y14.26%
EPS Next 3Y10.63%
RLI CORP
NYSE:RLI (1/14/2025, 8:04:00 PM)
After market: 153.04 0 (0%)153.04
+2.75 (+1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners81.43%
Inst Owner Change0.01%
Ins Owners0.79%
Ins Owner Change2.61%
Market Cap7.01B
Analysts75.71
Price Target186.25 (21.7%)
Short Float %1.09%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)10.39%
DP33.96%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.05%
Min EPS beat(2)27.1%
Max EPS beat(2)33%
EPS beat(4)4
Avg EPS beat(4)19.9%
Min EPS beat(4)2.38%
Max EPS beat(4)33%
EPS beat(8)7
Avg EPS beat(8)93.53%
EPS beat(12)10
Avg EPS beat(12)71.49%
EPS beat(16)14
Avg EPS beat(16)60.51%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)2.08%
Max Revenue beat(2)2.64%
Revenue beat(4)3
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-8.39%
Max Revenue beat(4)2.64%
Revenue beat(8)6
Avg Revenue beat(8)3.17%
Revenue beat(12)9
Avg Revenue beat(12)15.12%
Revenue beat(16)12
Avg Revenue beat(16)16.08%
PT rev (1m)2.35%
PT rev (3m)9.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.64%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-5.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 23.73 | ||
| P/S | 3.98 | ||
| P/FCF | 12.76 | ||
| P/OCF | 12.65 | ||
| P/B | 4.01 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 14.34 |
EPS(TTM)6.46
EY4.22%
EPS(NY)6.45
Fwd EY4.21%
FCF(TTM)11.99
FCFY7.84%
OCF(TTM)12.1
OCFY7.9%
SpS38.44
BVpS38.16
TBVpS36.99
PEG (NY)1.15
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 24% | ||
| ROCE | 8.52% | ||
| ROIC | 6.89% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 8.57% | ||
| OM | 26.93% | ||
| PM (TTM) | 23.82% | ||
| GM | N/A | ||
| FCFM | 31.2% |
ROA(3y)8.11%
ROA(5y)6.74%
ROE(3y)31.28%
ROE(5y)25.38%
ROIC(3y)8.32%
ROIC(5y)6.76%
ROICexc(3y)8.39%
ROICexc(5y)6.83%
ROICexgc(3y)10.69%
ROICexgc(5y)8.58%
ROCE(3y)10.29%
ROCE(5y)8.36%
ROICexcg growth 3Y19.25%
ROICexcg growth 5Y32.29%
ROICexc growth 3Y17.6%
ROICexc growth 5Y31.29%
OM growth 3Y11.24%
OM growth 5Y27.94%
PM growth 3Y8.05%
PM growth 5Y20.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.41% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.77% | ||
| Profit Quality | 130.99% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC9.32%
ROIC/WACC0.74
Cap/Depr(3y)85.12%
Cap/Depr(5y)83.82%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.55%
Profit Quality(3y)109.07%
Profit Quality(5y)126.39%
High Growth Momentum
Growth
EPS 1Y (TTM)31.03%
EPS 3Y23.86%
EPS 5Y19.12%
EPS Q2Q%114.75%
EPS Next Y20.54%
EPS Next 2Y14.26%
EPS Next 3Y10.63%
EPS Next 5Y10.34%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y15.41%
Revenue growth 5Y13.06%
Sales Q2Q%19.96%
Revenue Next Year12.49%
Revenue Next 2Y9.75%
Revenue Next 3Y8.67%
Revenue Next 5YN/A
EBIT growth 1Y38.77%
EBIT growth 3Y28.38%
EBIT growth 5Y44.65%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.77%
FCF growth 3Y21.19%
FCF growth 5Y16.78%
OCF growth 1Y43.08%
OCF growth 3Y20.81%
OCF growth 5Y16.42%