RLI CORP (RLI)
US7496071074 - Common Stock
Overall RLI gets a fundamental rating of 5 out of 10. We evaluated RLI against 140 industry peers in the Insurance industry. RLI has an excellent profitability rating, but there are some minor concerns on its financial health. RLI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RLI had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 5.88%, RLI belongs to the top of the industry, outperforming 87.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.55%, RLI belongs to the top of the industry, outperforming 87.77% of the companies in the same industry.
RLI's Return On Invested Capital of 6.12% is amongst the best of the industry. RLI outperforms 89.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RLI is above the industry average of 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.55% | ||
| ROIC | 6.12% |
ROA(3y)8.11%
ROA(5y)6.74%
ROE(3y)31.28%
ROE(5y)25.38%
ROIC(3y)8.32%
ROIC(5y)6.76%
1.3 Margins
The Profit Margin of RLI (20.15%) is better than 87.05% of its industry peers.
RLI's Profit Margin has improved in the last couple of years.
The Operating Margin of RLI (24.80%) is better than 85.61% of its industry peers.
RLI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.8% | ||
| PM (TTM) | 20.15% | ||
| GM | N/A |
OM growth 3Y11.24%
OM growth 5Y27.94%
PM growth 3Y8.05%
PM growth 5Y20.76%
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.
RLI has more shares outstanding than it did 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
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 | 0.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC9.16%
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 -0.20% 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 19.12% yearly.
RLI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.95%.
RLI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)-0.2%
EPS 3Y23.86%
EPS 5Y19.12%
EPS growth Q2Q0.65%
Revenue 1Y (TTM)-10.95%
Revenue growth 3Y15.41%
Revenue growth 5Y13.06%
Revenue growth Q2Q20.22%
3.2 Future
Based on estimates for the next years, RLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
RLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y11.48%
EPS Next 2Y8.32%
EPS Next 3Y8.54%
EPS Next 5YN/A
Revenue Next Year8.85%
Revenue Next 2Y7.76%
Revenue Next 3Y7.36%
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.
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
RLI is valuated quite expensively with a Price/Earnings ratio of 28.38.
RLI's Price/Earnings ratio is a bit more expensive when compared to the industry. RLI is more expensive than 66.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of RLI to the average of the S&P500 Index (24.76), we can say RLI is valued inline with the index average.
A Price/Forward Earnings ratio of 25.46 indicates a quite expensive valuation of RLI.
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 71.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, RLI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 25.46 |
4.2 Price Multiples
RLI's Enterprise Value to EBITDA ratio is in line with the industry average.
RLI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 16.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RLI may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.48
EPS Next 2Y8.32%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, RLI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.31, RLI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, RLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of RLI is nicely growing with an annual growth rate of 10.39%!
RLI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)10.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RLI pays out 45.99% of its income as dividend. 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.
DP45.99%
EPS Next 2Y8.32%
EPS Next 3Y8.54%
RLI CORP
NYSE:RLI (4/19/2024, 7:13:45 PM)
After market: 140.21 0 (0%)140.21
+3.12 (+2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 25.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 21.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.8% | ||
| PM (TTM) | 20.15% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.2%
EPS 3Y23.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.95%
Revenue growth 3Y15.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y