RLI CORP (RLI)
US7496071074 - Common Stock
Taking everything into account, RLI scores 6 out of 10 in our fundamental rating. RLI was compared to 141 industry peers in the Insurance industry. RLI has an excellent profitability rating, but there are some minor concerns on its financial health. RLI shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year RLI was profitable.
RLI had a positive operating cash flow in the past year.
Each year in the past 5 years RLI has been profitable.
RLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RLI has a better Return On Assets (7.24%) than 89.29% of its industry peers.
RLI has a better Return On Equity (24.00%) than 87.86% of its industry peers.
The Return On Invested Capital of RLI (6.89%) is better than 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.27%.
| 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
The Profit Margin of RLI (23.82%) is better than 90.71% of its industry peers.
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 90.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RLI is destroying value.
Compared to 1 year ago, RLI has more shares outstanding
The number of shares outstanding for RLI has been increased compared to 5 years ago.
RLI has a better debt/assets ratio than last year.
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/WACC0.77
WACC8.98%
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.
The Earnings Per Share has been growing by 19.12% on average over the past years. This is quite good.
Looking at the last year, RLI shows a very strong growth in Revenue. The Revenue has grown by 22.38%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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 10.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y20.53%
EPS Next 2Y14.26%
EPS Next 3Y10.57%
EPS Next 5YN/A
Revenue Next Year11.81%
Revenue Next 2Y9.16%
Revenue Next 3Y8.15%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.54, which means the current valuation is very expensive for RLI.
72.86% of the companies in the same industry are cheaper than RLI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.20, RLI is valued at the same level.
With a Price/Forward Earnings ratio of 27.59, RLI can be considered very expensive at the moment.
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 75.00% of the companies listed in the same industry.
RLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 27.59 |
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 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 16.97 |
4.3 Compensation for Growth
The 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)1.34
PEG (5Y)1.44
EPS Next 2Y14.26%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
RLI has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 4.05, RLI is paying slightly less dividend.
With a Dividend Yield of 0.65, RLI pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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.
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 2Y14.26%
EPS Next 3Y10.57%
RLI CORP
NYSE:RLI (11/22/2024, 8:04:00 PM)
After market: 177.94 0 (0%)177.94
-0.09 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 27.54 | ||
| Fwd PE | 27.59 | ||
| 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)1.34
PEG (5Y)1.44
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