RLI CORP (RLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RLI - US7496071074 - Common Stock
64.34 USD
+0.71 (+1.12%)
64.34 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RLI. RLI was compared to 147 industry peers in the Insurance industry. RLI scores excellent on profitability, but there are some minor concerns on its financial health. RLI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RLI had positive earnings in the past year.
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
With an excellent Return On Assets value of 5.65%, RLI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RLI's Return On Equity of 18.84% is amongst the best of the industry. RLI outperforms 82.99% of its industry peers.
With an excellent Return On Invested Capital value of 6.05%, RLI belongs to the best of the industry, outperforming 85.03% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RLI is significantly below the industry average of 14.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 18.84% | ||
| ROIC | 6.05% |
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
The Profit Margin of RLI (19.02%) is better than 87.76% of its industry peers.
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 24.29%. This is amongst the best in the industry. RLI outperforms 84.35% of its industry peers.
RLI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.29% | ||
| PM (TTM) | 19.02% | ||
| 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
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.
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 | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC8.75%
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 -7.12%.
The Earnings Per Share has been growing by 17.43% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.93% in the past year.
RLI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.02% yearly.
EPS 1Y (TTM)-7.12%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%26.72%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
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 1.68% on average per year.
Based on estimates for the next years, RLI will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y18.82%
EPS Next 2Y3.96%
EPS Next 3Y1.68%
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y2.95%
Revenue Next 3Y2.54%
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.
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
With a Price/Earnings ratio of 21.45, 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 71.43% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.54, RLI is valued at the same level.
RLI is valuated rather expensively with a Price/Forward Earnings ratio of 20.74.
Based on the Price/Forward Earnings ratio, RLI is valued a bit more expensive than the industry average as 74.15% of the companies are valued more cheaply.
RLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
RLI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.85 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)1.23
EPS Next 2Y3.96%
EPS Next 3Y1.68%
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 3.42, RLI has a dividend in line with its industry peers.
With a Dividend Yield of 1.01, RLI pays less dividend than the S&P500 average, which is at 2.27.
| 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 been paying a dividend for at least 10 years, so it has 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
55.74% of the earnings are spent on dividend by RLI. This is a bit on the high side, but may be sustainable.
RLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.74%
EPS Next 2Y3.96%
EPS Next 3Y1.68%
64.34
+0.71 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.23%
Inst Owner Change0.92%
Ins Owners0.72%
Ins Owner Change0.57%
Market Cap5.91B
Revenue(TTM)1.86B
Net Income(TTM)353.02M
Analysts50.67
Price Target67.58 (5.04%)
Short Float %3.36%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend3.43
Dividend Growth(5Y)12.36%
DP55.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.14%
Min EPS beat(2)7.02%
Max EPS beat(2)15.26%
EPS beat(4)3
Avg EPS beat(4)2.14%
Min EPS beat(4)-21.72%
Max EPS beat(4)15.26%
EPS beat(8)7
Avg EPS beat(8)11.02%
EPS beat(12)10
Avg EPS beat(12)63.06%
EPS beat(16)13
Avg EPS beat(16)54.15%
Revenue beat(2)0
Avg Revenue beat(2)-3.83%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.76%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)-1.84%
Revenue beat(8)3
Avg Revenue beat(8)-2.14%
Revenue beat(12)6
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)10.4%
PT rev (1m)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)0%
EPS NY rev (3m)8.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 20.74 | ||
| P/S | 3.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.15 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)3
EY4.66%
EPS(NY)3.1
Fwd EY4.82%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS20.21
BVpS20.41
TBVpS19.82
PEG (NY)1.14
PEG (5Y)1.23
Graham Number37.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 18.84% | ||
| ROCE | 7.49% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 7.37% | ||
| OM | 24.29% | ||
| PM (TTM) | 19.02% | ||
| 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%
ROICexgc growth 3Y3.78%
ROICexgc 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
WACC8.75%
ROIC/WACC0.69
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)-7.12%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%26.72%
EPS Next Y18.82%
EPS Next 2Y3.96%
EPS Next 3Y1.68%
EPS Next 5YN/A
Revenue 1Y (TTM)7.93%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
Revenue Next Year1.1%
Revenue Next 2Y2.95%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
EBIT growth 1Y-4.96%
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%
RLI CORP / RLI FAQ
Can you provide the ChartMill fundamental rating for RLI CORP?
ChartMill assigns a fundamental rating of 5 / 10 to RLI.
Can you provide the valuation status for RLI CORP?
ChartMill assigns a valuation rating of 2 / 10 to RLI CORP (RLI). This can be considered as Overvalued.
How profitable is RLI CORP (RLI) stock?
RLI CORP (RLI) has a profitability rating of 7 / 10.
What is the financial health of RLI CORP (RLI) stock?
The financial health rating of RLI CORP (RLI) is 4 / 10.
Can you provide the dividend sustainability for RLI stock?
The dividend rating of RLI CORP (RLI) is 4 / 10 and the dividend payout ratio is 55.74%.