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RLI CORP (RLI) Stock Fundamental Analysis

NYSE:RLI - New York Stock Exchange, Inc. - US7496071074 - Common Stock - Currency: USD

73.7  -0.66 (-0.89%)

After market: 73.7 0 (0%)

Fundamental Rating

5

Overall RLI gets a fundamental rating of 5 out of 10. We evaluated RLI against 143 industry peers in the Insurance industry. While RLI has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, RLI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

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.
RLI had a positive operating cash flow in each of the past 5 years.
RLI Yearly Net Income VS EBIT VS OCF VS FCFRLI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

Looking at the Return On Assets, with a value of 6.14%, RLI belongs to the top of the industry, outperforming 91.61% 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 91.61% of the companies in the same industry.
The Return On Invested Capital of RLI (5.90%) is better than 86.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.23%.
Industry RankSector 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%
RLI Yearly ROA, ROE, ROICRLI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

RLI's Profit Margin of 20.04% is amongst the best of the industry. RLI outperforms 88.81% of its industry peers.
In the last couple of years the Profit Margin of RLI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 22.81%, RLI belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
In the last couple of years the Operating Margin of RLI has grown nicely.
Industry RankSector 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
RLI Yearly Profit, Operating, Gross MarginsRLI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RLI 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.
Compared to 1 year ago, RLI has an improved debt to assets ratio.
RLI Yearly Shares OutstandingRLI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
RLI Yearly Total Debt VS Total AssetsRLI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0.18
Altman-Z N/A
ROIC/WACC0.65
WACC9.02%
RLI Yearly LT Debt VS Equity VS FCFRLI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
RLI Yearly Current Assets VS Current LiabilitesRLI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

5

3. Growth

3.1 Past

RLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.42%, which is quite good.
RLI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.43% yearly.
RLI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.07%.
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)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

RLI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.66% yearly.
The Revenue is expected to grow by 3.44% on average over the next years.
EPS Next Y7.53%
EPS Next 2Y5.49%
EPS Next 3Y2.66%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y5.67%
Revenue Next 3Y3.44%
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.
RLI Yearly Revenue VS EstimatesRLI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
RLI Yearly EPS VS EstimatesRLI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.86, RLI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RLI indicates a slightly more expensive valuation: RLI is more expensive than 72.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.85, RLI is valued at the same level.
The Price/Forward Earnings ratio is 23.08, which indicates a rather expensive current valuation of RLI.
73.43% of the companies in the same industry are cheaper than RLI, based on the Price/Forward Earnings ratio.
RLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.86
Fwd PE 23.08
RLI Price Earnings VS Forward Price EarningsRLI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

RLI's Enterprise Value to EBITDA ratio is in line with the industry average.
RLI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.18
EV/EBITDA 17.16
RLI Per share dataRLI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)3.43
PEG (5Y)1.48
EPS Next 2Y5.49%
EPS Next 3Y2.66%

3

5. Dividend

5.1 Amount

RLI has a yearly dividend return of 0.81%, which is pretty low.
RLI's Dividend Yield is slightly below the industry average, which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.40, RLI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.81%

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
RLI Yearly Dividends per shareRLI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

RLI pays out 68.15% of its income as dividend. This is not a sustainable payout ratio.
RLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.15%
EPS Next 2Y5.49%
EPS Next 3Y2.66%
RLI Yearly Income VS Free CF VS DividendRLI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RLI Dividend Payout.RLI Dividend Payout, showing the Payout Ratio.RLI Dividend Payout.PayoutRetained Earnings

RLI CORP

NYSE:RLI (5/14/2025, 8:04:00 PM)

After market: 73.7 0 (0%)

73.7

-0.66 (-0.89%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners81.94%
Inst Owner Change36.18%
Ins Owners0.85%
Ins Owner Change1.34%
Market Cap6.76B
Analysts67.69
Price Target78.8 (6.92%)
Short Float %1.61%
Short Ratio3.26
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend3.43
Dividend Growth(5Y)12.36%
DP68.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-28 2025-02-28 (0.15)
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)-5.56%
PT rev (3m)-5.56%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 25.86
Fwd PE 23.08
P/S 3.92
P/FCF 12.18
P/OCF 12.07
P/B 4.44
P/tB 4.61
EV/EBITDA 17.16
EPS(TTM)2.85
EY3.87%
EPS(NY)3.19
Fwd EY4.33%
FCF(TTM)6.05
FCFY8.21%
OCF(TTM)6.1
OCFY8.28%
SpS18.8
BVpS16.58
TBVpS16
PEG (NY)3.43
PEG (5Y)1.48
Profitability
Industry RankSector 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 RankSector 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
WACC9.02%
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)9.42%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%-2.65%
EPS Next Y7.53%
EPS Next 2Y5.49%
EPS Next 3Y2.66%
EPS Next 5YN/A
Revenue 1Y (TTM)12.07%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%5.15%
Revenue Next Year5.37%
Revenue Next 2Y5.67%
Revenue Next 3Y3.44%
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%