RLI CORP(NYSE:RLI) stock Fundamental Analysis

Fundamental Rating

Overall RLI gets a fundamental rating of 5 out of 10. We evaluated RLI against 143 industry peers in the Insurance industry. While RLI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, RLI is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

RLI had positive earnings in the past year.

RLI had a positive operating cash flow in the past year.

In the past 5 years RLI has always been profitable.

RLI had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 7.24%, RLI belongs to the best of the industry, outperforming 90.07% of the companies in the same industry.

The Return On Equity of RLI (24.00%) is better than 87.94% of its industry peers.

RLI has a better Return On Invested Capital (6.89%) than 85.11% of its industry peers.

		Industry Rank	Sector Rank
ROA	7.24%
ROE	24%
ROIC	6.89%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of RLI (23.82%) is better than 89.36% of its industry peers.

RLI's Profit Margin has been stable in the last couple of years.

Looking at the Operating Margin, with a value of 26.93%, RLI belongs to the top of the industry, outperforming 90.78% 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 3Y-2.46%

OM growth 5Y2.54%

PM growth 3Y-6.23%

PM growth 5Y0.46%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RLI is destroying value.

RLI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

RLI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0.18
Altman-Z	N/A

ROIC/WACC0.76

WACC9.06%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

RLI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.77%.

RLI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.22% yearly.

The Revenue has grown by 16.85% in the past year. This is quite good.

The Revenue has been growing by 12.02% on average over the past years. This is quite good.

EPS 1Y (TTM)-22.77%

EPS 3Y-0.48%

EPS 5Y8.22%

EPS Q2Q%-73.38%

Revenue 1Y (TTM)16.85%

Revenue growth 3Y14.5%

Revenue growth 5Y12.02%

Sales Q2Q%10.74%

3.2 Future

RLI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.91% yearly.

RLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.

EPS Next Y-18.62%

EPS Next 2Y-7.98%

EPS Next 3Y-5.91%

EPS Next 5YN/A

Revenue Next Year4.76%

Revenue Next 2Y4.8%

Revenue Next 3Y3.93%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.60, which indicates a rather expensive current valuation of RLI.

Compared to the rest of the industry, the Price/Earnings ratio of RLI indicates a slightly more expensive valuation: RLI is more expensive than 68.09% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 30.30, RLI is valued a bit cheaper.

Based on the Price/Forward Earnings ratio of 24.05, the valuation of RLI can be described as rather expensive.

72.34% of the companies in the same industry are cheaper than RLI, based on the Price/Forward Earnings ratio.

RLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	19.6
Fwd PE	24.05

4.2 Price Multiples

RLI's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	12.45
EV/EBITDA	N/A

4.3 Compensation for Growth

RLI has a very decent profitability rating, which may justify a higher PE ratio.

RLI's earnings are expected to decrease with -5.91% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)2.38

EPS Next 2Y-7.98%

EPS Next 3Y-5.91%

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5. Dividend

5.1 Amount

RLI has a yearly dividend return of 0.76%, which is pretty low.

Compared to an average industry Dividend Yield of 3.08, RLI is paying slightly less dividend.

With a Dividend Yield of 0.76, RLI pays less dividend than the S&P500 average, which is at 2.29.

		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.

The dividend of RLI decreased recently.

Dividend Growth(5Y)10.39%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

33.96% of the earnings are spent on dividend by RLI. This is a low number and sustainable payout ratio.

DP33.96%

EPS Next 2Y-7.98%

EPS Next 3Y-5.91%

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RLI CORP

NYSE:RLI (2/20/2025, 8:04:00 PM)

Premarket: 75.35 +0.67 (+0.9%)

74.68

+0.21 (+0.28%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)01-22 2025-01-22/amc

Earnings (Next)04-21 2025-04-21/amc

Inst Owners81.43%

Inst Owner Change1.2%

Ins Owners0.79%

Ins Owner Change2.95%

Market Cap6.84B

Analysts70

Price Target83.44 (11.73%)

Short Float %N/A

Short Ratio2.95

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.76%

Yearly Dividend3.08

Dividend Growth(5Y)10.39%

DP33.96%

Div Incr Years1

Div Non Decr Years1

Ex-Date02-28 2025-02-28 (0.15)

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)-55.2%

PT rev (3m)-52.99%

EPS NQ rev (1m)-48.53%

EPS NQ rev (3m)-50.09%

EPS NY rev (1m)-51.86%

EPS NY rev (3m)-51.86%

Revenue NQ rev (1m)2.2%

Revenue NQ rev (3m)2.2%

Revenue NY rev (1m)-2.17%

Revenue NY rev (3m)-1.09%

Valuation

		Industry Rank	Sector Rank
PE	19.6
Fwd PE	24.05
P/S	3.89
P/FCF	12.45
P/OCF	12.35
P/B	3.91
P/tB	4.04
EV/EBITDA	N/A

EPS(TTM)3.81

EY5.1%

EPS(NY)3.1

Fwd EY4.16%

FCF(TTM)6

FCFY8.03%

OCF(TTM)6.05

OCFY8.1%

SpS19.22

BVpS19.08

TBVpS18.49

PEG (NY)N/A

PEG (5Y)2.38

Profitability

		Industry Rank	Sector Rank
ROA	7.24%
ROE	24%
ROCE	8.52%
ROIC	6.89%
ROICexc	6.96%
ROICexgc	8.57%
OM	26.93%
PM (TTM)	23.82%
GM	N/A
FCFM	31.2%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3Y-2.46%

OM growth 5Y2.54%

PM growth 3Y-6.23%

PM growth 5Y0.46%

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	N/A
Cap/Depr	N/A
Cap/Sales	0.26%
Interest Coverage	250
Cash Conversion	N/A
Profit Quality	130.99%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score8

WACC9.06%

ROIC/WACC0.76

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-22.77%

EPS 3Y-0.48%

EPS 5Y8.22%

EPS Q2Q%-73.38%

EPS Next Y-18.62%

EPS Next 2Y-7.98%

EPS Next 3Y-5.91%

EPS Next 5YN/A

Revenue 1Y (TTM)16.85%

Revenue growth 3Y14.5%

Revenue growth 5Y12.02%

Sales Q2Q%10.74%

Revenue Next Year4.76%

Revenue Next 2Y4.8%

Revenue Next 3Y3.93%

Revenue Next 5YN/A

EBIT growth 1Y38.77%

EBIT growth 3Y11.69%

EBIT growth 5Y14.87%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y81.46%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y78.92%

OCF growth 3YN/A

OCF growth 5YN/A

RLI CORP (RLI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens