RLI CORP (RLI) Stock Fundamental Analysis
USA - NYSE:RLI - US7496071074 - Common Stock
63.24 USD
+1.08 (+1.74%)
63.24 USD
0 (0%)
RLI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
RLI had positive earnings in the past year.
Each year in the past 5 years RLI has been profitable.
Each year in the past 5 years RLI had a positive operating cash flow.
1.2 Ratios
RLI's Return On Assets of 5.65% is amongst the best of the industry. RLI outperforms 86.99% of its industry peers.
RLI's Return On Equity of 18.84% is amongst the best of the industry. RLI outperforms 83.56% of its industry peers.
RLI has a Return On Invested Capital of 6.05%. This is amongst the best in the industry. RLI outperforms 86.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.51%.
| 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
Looking at the Profit Margin, with a value of 19.02%, RLI belongs to the top of the industry, outperforming 87.67% of the companies in the same industry.
RLI's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 24.29%, RLI belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
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.
The number of shares outstanding for RLI has been increased compared to 5 years ago.
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/WACC0.7
WACC8.64%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for RLI have decreased by -7.12% in the last year.
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 been growing slightly by 7.93% in the past year.
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)7.93%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
3.2 Future
RLI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.68% yearly.
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.
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 21.08, which indicates a rather expensive current valuation of RLI.
RLI's Price/Earnings ratio is a bit more expensive when compared to the industry. RLI is more expensive than 70.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. RLI is around the same levels.
Based on the Price/Forward Earnings ratio of 20.39, the valuation of RLI can be described as rather expensive.
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 71.92% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RLI to the average of the S&P500 Index (34.57), we can say RLI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 20.39 |
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 | 12.55 |
4.3 Compensation for Growth
The 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)1.12
PEG (5Y)1.21
EPS Next 2Y3.96%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
RLI has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
RLI's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.36, RLI's dividend is way lower than the S&P500 average.
| 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 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.
The dividend of RLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.74%
EPS Next 2Y3.96%
EPS Next 3Y1.68%
63.24
+1.08 (+1.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change1.73%
Ins Owners0.86%
Ins Owner Change0.14%
Market Cap5.81B
Revenue(TTM)1.86B
Net Income(TTM)353.02M
Analysts50.67
Price Target67.58 (6.86%)
Short Float %2.68%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-10.87%
PT rev (3m)-10.87%
EPS NQ rev (1m)-3.77%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)7.74%
EPS NY rev (3m)10.5%
Revenue NQ rev (1m)-2.01%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)-4.05%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 20.39 | ||
| P/S | 3.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.1 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)3
EY4.74%
EPS(NY)3.1
Fwd EY4.91%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS20.21
BVpS20.41
TBVpS19.83
PEG (NY)1.12
PEG (5Y)1.21
Graham Number37.12
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
WACC8.64%
ROIC/WACC0.7
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%.