RLI CORP (RLI) Stock Fundamental Analysis
NYSE:RLI - New York Stock Exchange, Inc. - US7496071074 - Common Stock - Currency: USD
Overall RLI gets a fundamental rating of 5 out of 10. We evaluated RLI against 145 industry peers in the Insurance industry. RLI has an excellent profitability rating, 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
In the past year RLI was profitable.
In the past year RLI had a positive cash flow from operations.
In the past 5 years RLI has always been profitable.
Each year in the past 5 years RLI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.14%, RLI belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.72%, RLI belongs to the top of the industry, outperforming 91.72% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.90%, RLI belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
RLI had an Average Return On Invested Capital over the past 3 years of 8.57%. This is above the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.72% | ||
| ROIC | 5.9% |
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 (20.04%) is better than 88.28% 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 22.81%. This is amongst the best in the industry. RLI outperforms 86.21% of its industry peers.
In the last couple of years the Operating Margin of RLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.81% | ||
| PM (TTM) | 20.04% | ||
| 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.
RLI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RLI has more shares outstanding
RLI has a better debt/assets ratio than last year.
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 | 0.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.99%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.42% over the past year.
Measured over the past years, RLI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.43% on average per year.
The Revenue has grown by 12.07% in the past year. This is quite good.
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)9.42%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.65%
Revenue 1Y (TTM)12.07%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%5.15%
3.2 Future
The Earnings Per Share is expected to grow by 2.67% on average over the next years.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y7.53%
EPS Next 2Y5.25%
EPS Next 3Y2.67%
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y6.53%
Revenue Next 3Y4.92%
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.
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
A Price/Earnings ratio of 24.82 indicates a rather expensive valuation of RLI.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than 71.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, RLI is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.24, the valuation of RLI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RLI is valued a bit more expensive than the industry average as 71.72% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 35.19. RLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 22.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RLI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 16.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RLI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)1.42
EPS Next 2Y5.25%
EPS Next 3Y2.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, RLI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, RLI is paying slightly less dividend.
With a Dividend Yield of 0.90, RLI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of RLI is nicely growing with an annual growth rate of 12.36%!
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
68.15% 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.
DP68.15%
EPS Next 2Y5.25%
EPS Next 3Y2.67%
NYSE:RLI (7/14/2025, 10:04:19 AM)
70.725
+0.55 (+0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.78%
Inst Owner Change0%
Ins Owners0.85%
Ins Owner Change0.65%
Market Cap6.49B
Analysts67.69
Price Target78.8 (11.42%)
Short Float %1.81%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend3.43
Dividend Growth(5Y)12.36%
DP68.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.64%
Min EPS beat(2)-21.72%
Max EPS beat(2)33%
EPS beat(4)3
Avg EPS beat(4)13.87%
Min EPS beat(4)-21.72%
Max EPS beat(4)33%
EPS beat(8)6
Avg EPS beat(8)87.04%
EPS beat(12)9
Avg EPS beat(12)66.49%
EPS beat(16)13
Avg EPS beat(16)58.25%
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)2.08%
Revenue beat(4)3
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)2.64%
Revenue beat(8)5
Avg Revenue beat(8)0.02%
Revenue beat(12)8
Avg Revenue beat(12)12.78%
Revenue beat(16)11
Avg Revenue beat(16)13.98%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 22.24 | ||
| P/S | 3.76 | ||
| P/FCF | 11.68 | ||
| P/OCF | 11.59 | ||
| P/B | 4.26 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 16.2 |
EPS(TTM)2.85
EY4.03%
EPS(NY)3.18
Fwd EY4.5%
FCF(TTM)6.05
FCFY8.56%
OCF(TTM)6.1
OCFY8.63%
SpS18.8
BVpS16.58
TBVpS16
PEG (NY)3.3
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 22.72% | ||
| ROCE | 7.3% | ||
| ROIC | 5.9% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 7.35% | ||
| OM | 22.81% | ||
| PM (TTM) | 20.04% | ||
| GM | N/A | ||
| FCFM | 32.2% |
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.46% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.67% | ||
| Profit Quality | 160.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.99%
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)9.42%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.65%
EPS Next Y7.53%
EPS Next 2Y5.25%
EPS Next 3Y2.67%
EPS Next 5YN/A
Revenue 1Y (TTM)12.07%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%5.15%
Revenue Next Year6.59%
Revenue Next 2Y6.53%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y4.93%
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%