RLI CORP (RLI) Stock Fundamental Analysis
NYSE:RLI - US7496071074 - Common Stock
67.76 USD
+0.59 (+0.88%)
67.76 USD
0 (0%)
Overall RLI gets a fundamental rating of 4 out of 10. We evaluated RLI against 146 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
RLI had positive earnings in the past year.
RLI had positive earnings in each of the past 5 years.
RLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RLI (5.40%) is better than 87.67% of its industry peers.
RLI's Return On Equity of 18.65% is amongst the best of the industry. RLI outperforms 86.30% of its industry peers.
RLI's Return On Invested Capital of 5.73% is amongst the best of the industry. RLI outperforms 84.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RLI is above the industry average of 4.46%.
| 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
With an excellent Profit Margin value of 17.80%, RLI belongs to the best of the industry, outperforming 88.36% of the companies in the same industry.
In the last couple of years the Profit Margin of RLI has remained more or less at the same level.
The Operating Margin of RLI (22.62%) is better than 86.99% of its industry peers.
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
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.
Compared to 1 year ago, RLI has an improved debt to assets ratio.
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/WACC0.65
WACC8.78%
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 -1.91%.
The Earnings Per Share has been growing by 17.43% on average over the past years. This is quite good.
RLI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.89%.
Measured over the past years, RLI shows a quite strong growth in Revenue. The Revenue has been growing by 12.02% on average per year.
EPS 1Y (TTM)-1.91%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.33%
Revenue 1Y (TTM)14.89%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%-0.62%
3.2 Future
RLI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.08% yearly.
RLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y9.7%
EPS Next 2Y5.24%
EPS Next 3Y3.08%
EPS Next 5YN/A
Revenue Next Year3.72%
Revenue Next 2Y3.71%
Revenue Next 3Y2.98%
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
Based on the Price/Earnings ratio of 23.94, the valuation of RLI can be described as rather expensive.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than 74.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. RLI is around the same levels.
A Price/Forward Earnings ratio of 21.32 indicates a rather expensive valuation of RLI.
RLI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RLI is more expensive than 72.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RLI to the average of the S&P500 Index (22.63), we can say RLI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 21.32 |
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 | 15.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RLI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RLI may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.37
EPS Next 2Y5.24%
EPS Next 3Y3.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RLI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.24, RLI has a dividend in line with its industry peers.
With a Dividend Yield of 0.95, RLI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
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 2Y5.24%
EPS Next 3Y3.08%
67.76
+0.59 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.22%
Inst Owner Change1.68%
Ins Owners0.86%
Ins Owner Change0.16%
Market Cap6.22B
Analysts50.67
Price Target75.82 (11.89%)
Short Float %2.44%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-4.39%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)2.02%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 21.32 | ||
| P/S | 3.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.59 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 15.05 |
EPS(TTM)2.83
EY4.18%
EPS(NY)3.18
Fwd EY4.69%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS19.78
BVpS18.89
TBVpS18.31
PEG (NY)2.47
PEG (5Y)1.37
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%
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-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
WACC8.78%
ROIC/WACC0.65
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)-1.91%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.33%
EPS Next Y9.7%
EPS Next 2Y5.24%
EPS Next 3Y3.08%
EPS Next 5YN/A
Revenue 1Y (TTM)14.89%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%-0.62%
Revenue Next Year3.72%
Revenue Next 2Y3.71%
Revenue Next 3Y2.98%
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%