RLI CORP (RLI) Stock Fundamental Analysis
USA - NYSE:RLI - US7496071074 - Common Stock
64.53 USD
+1.06 (+1.67%)
64.53 USD
0 (0%)
Taking everything into account, RLI scores 4 out of 10 in our fundamental rating. RLI was compared to 146 industry peers in the Insurance industry. RLI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, RLI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RLI was profitable.
RLI had positive earnings in each of the past 5 years.
In the past 5 years RLI always reported a positive cash flow from operatings.
1.2 Ratios
RLI has a better Return On Assets (5.40%) than 87.67% of its industry peers.
RLI has a Return On Equity of 18.65%. This is amongst the best in the industry. RLI outperforms 86.30% of its industry peers.
The Return On Invested Capital of RLI (5.73%) is better than 84.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 18.65% | ||
| ROIC | 5.73% |
ROA(3y)8.09%
ROA(5y)6.89%
ROE(3y)31.27%
ROE(5y)26.07%
ROIC(3y)8.57%
ROIC(5y)7.05%
1.3 Margins
Looking at the Profit Margin, with a value of 17.80%, RLI belongs to the top of the industry, outperforming 88.36% of the companies in the same industry.
In the last couple of years the Profit Margin of RLI has remained more or less at the same level.
RLI has a Operating Margin of 22.62%. This is amongst the best in the industry. RLI outperforms 86.99% of its industry peers.
In the last couple of years the Operating Margin of RLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 17.8% | ||
| GM | N/A |
OM growth 3Y-2.46%
OM growth 5Y2.54%
PM growth 3Y-6.23%
PM growth 5Y0.45%
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
Compared to 5 years ago, RLI has more shares outstanding
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 | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.69%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RLI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.91%.
RLI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.43% yearly.
Looking at the last year, RLI shows a quite strong growth in Revenue. The Revenue has grown by 14.89% in the last year.
Measured over the past years, RLI shows a quite strong growth in Revenue. The Revenue has been growing by 12.02% on average per year.
EPS 1Y (TTM)-1.91%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.33%
Revenue 1Y (TTM)14.89%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%-0.62%
3.2 Future
Based on estimates for the next years, RLI will show a small growth in Earnings Per Share. The EPS will grow by 2.57% on average per year.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y5.23%
EPS Next 3Y2.57%
EPS Next 5YN/A
Revenue Next Year3.72%
Revenue Next 2Y3.71%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 22.80, RLI is valued on the expensive side.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than the industry average as 73.29% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of RLI to the average of the S&P500 Index (27.86), we can say RLI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.30, which indicates a rather expensive current valuation of RLI.
69.86% of the companies in the same industry are cheaper than RLI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.32. RLI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.3 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RLI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RLI may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)1.31
EPS Next 2Y5.23%
EPS Next 3Y2.57%
5. Dividend
5.1 Amount
RLI has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.60, RLI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
On average, the dividend of RLI grows each year by 12.36%, 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)12.36%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
64.94% of the earnings are spent on dividend by RLI. This is not a sustainable payout ratio.
RLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.94%
EPS Next 2Y5.23%
EPS Next 3Y2.57%
64.53
+1.06 (+1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change1.66%
Ins Owners0.86%
Ins Owner Change0.37%
Market Cap5.93B
Analysts50
Price Target75.82 (17.5%)
Short Float %2.1%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend3.43
Dividend Growth(5Y)12.36%
DP64.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.52%
Min EPS beat(2)7.02%
Max EPS beat(2)8.03%
EPS beat(4)3
Avg EPS beat(4)6.58%
Min EPS beat(4)-21.72%
Max EPS beat(4)33%
EPS beat(8)7
Avg EPS beat(8)85.29%
EPS beat(12)9
Avg EPS beat(12)60.83%
EPS beat(16)13
Avg EPS beat(16)54.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)7
Avg Revenue beat(12)14.98%
Revenue beat(16)9
Avg Revenue beat(16)10.67%
PT rev (1m)0%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)0.54%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 20.3 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.42 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 14.11 |
EPS(TTM)2.83
EY4.39%
EPS(NY)3.18
Fwd EY4.93%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS19.78
BVpS18.89
TBVpS18.31
PEG (NY)2.22
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 18.65% | ||
| ROCE | 7.09% | ||
| ROIC | 5.73% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 6.98% | ||
| OM | 22.62% | ||
| PM (TTM) | 17.8% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)8.09%
ROA(5y)6.89%
ROE(3y)31.27%
ROE(5y)26.07%
ROIC(3y)8.57%
ROIC(5y)7.05%
ROICexc(3y)8.63%
ROICexc(5y)7.12%
ROICexgc(3y)10.98%
ROICexgc(5y)8.97%
ROCE(3y)10.61%
ROCE(5y)8.72%
ROICexcg growth 3Y3.78%
ROICexcg growth 5Y5.67%
ROICexc growth 3Y3.88%
ROICexc growth 5Y4.97%
OM growth 3Y-2.46%
OM growth 5Y2.54%
PM growth 3Y-6.23%
PM growth 5Y0.45%
GM growth 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC8.69%
ROIC/WACC0.66
Cap/Depr(3y)68.15%
Cap/Depr(5y)78.89%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.46%
Profit Quality(3y)117.68%
Profit Quality(5y)130.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.91%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.33%
EPS Next Y10.29%
EPS Next 2Y5.23%
EPS Next 3Y2.57%
EPS Next 5YN/A
Revenue 1Y (TTM)14.89%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%-0.62%
Revenue Next Year3.72%
Revenue Next 2Y3.71%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y10.38%
EBIT growth 3Y11.69%
EBIT growth 5Y14.87%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.2%
FCF growth 3Y13.83%
FCF growth 5Y15.53%
OCF growth 1Y20.67%
OCF growth 3Y13.33%
OCF growth 5Y15.13%