RLI CORP (RLI) Stock Fundamental Analysis
USA - NYSE:RLI - US7496071074 - Common Stock
58.43 USD
-0.87 (-1.47%)
58.43 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. While RLI has a great profitability rating, 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
In the past year RLI was profitable.
RLI had positive earnings in each of the past 5 years.
Each year in the past 5 years RLI had a positive operating cash flow.
1.2 Ratios
RLI has a Return On Assets of 5.40%. This is amongst the best in the industry. RLI outperforms 87.76% of its industry peers.
With an excellent Return On Equity value of 18.65%, RLI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RLI has a Return On Invested Capital of 5.73%. This is amongst the best in the industry. RLI outperforms 84.35% of its industry peers.
RLI had an Average Return On Invested Capital over the past 3 years of 8.57%. This is above the industry average of 4.49%.
| 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
RLI has a Profit Margin of 17.80%. This is amongst the best in the industry. RLI outperforms 87.76% 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 22.62%, RLI belongs to the top of the industry, outperforming 87.07% of the companies in the same industry.
RLI's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RLI is creating some value.
RLI has more shares outstanding than it did 1 year ago.
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 | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.55%
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%.
RLI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.43% yearly.
The Revenue has grown by 17.09% 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)-7.12%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%26.72%
Revenue 1Y (TTM)17.09%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
3.2 Future
The Earnings Per Share is expected to grow by 2.14% on average over the next years.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y15.15%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y4.18%
Revenue Next 3Y3.48%
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
Based on the Price/Earnings ratio of 19.48, the valuation of RLI can be described as rather expensive.
72.11% of the companies in the same industry are cheaper than RLI, based on the Price/Earnings ratio.
RLI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
A Price/Forward Earnings ratio of 18.66 indicates a rather expensive valuation of RLI.
Based on the Price/Forward Earnings ratio, RLI is valued a bit more expensive than the industry average as 70.07% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.63. RLI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
RLI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
RLI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RLI may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.12
EPS Next 2Y4.45%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, RLI has a reasonable but not impressive dividend return.
RLI's Dividend Yield is comparable with the industry average which is at 3.26.
With a Dividend Yield of 1.05, RLI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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.
The dividend of RLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.94%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
58.43
-0.87 (-1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change-0.19%
Ins Owners0.86%
Ins Owner Change0.37%
Market Cap5.37B
Revenue(TTM)1.77B
Net Income(TTM)323.44M
Analysts50
Price Target67.58 (15.66%)
Short Float %2.68%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-4.39%
EPS NQ rev (1m)27.72%
EPS NQ rev (3m)29.1%
EPS NY rev (1m)4.41%
EPS NY rev (3m)7.09%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.66 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.09 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 13.2 |
EPS(TTM)3
EY5.13%
EPS(NY)3.13
Fwd EY5.36%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS19.78
BVpS18.89
TBVpS18.31
PEG (NY)1.29
PEG (5Y)1.12
Graham Number35.71
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%
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
WACC8.55%
ROIC/WACC0.67
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 Y15.15%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue 1Y (TTM)17.09%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
Revenue Next Year4.58%
Revenue Next 2Y4.18%
Revenue Next 3Y3.48%
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%
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 3 / 10 and the dividend payout ratio is 64.94%.