RLI CORP (RLI) Stock Fundamental Analysis
USA - NYSE:RLI - US7496071074 - Common Stock
58.43 USD
-0.87 (-1.47%)
58.43 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RLI. RLI was compared to 147 industry peers in the Insurance industry. RLI scores excellent on profitability, 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
In the past year RLI was profitable.
RLI had positive earnings in each of the past 5 years.
In the past 5 years RLI always reported a positive cash flow from operatings.
1.2 Ratios
RLI's Return On Assets of 5.40% is amongst the best of the industry. RLI outperforms 87.76% of its industry peers.
Looking at the Return On Equity, with a value of 18.65%, RLI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
RLI has a Return On Invested Capital of 5.73%. This is amongst the best in the industry. RLI outperforms 84.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RLI is above the industry average of 4.49%.
| 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
RLI has a better Profit Margin (17.80%) than 87.76% of its industry peers.
RLI's Profit Margin has been stable in the last couple of years.
The Operating Margin of RLI (22.62%) is better than 87.07% 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RLI has more shares outstanding
RLI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RLI has been reduced compared to a year ago.
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/WACC0.67
WACC8.55%
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 -7.12%.
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 grown by 17.09% 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)-7.12%
EPS 3Y14.04%
EPS 5Y17.43%
EPS Q2Q%26.72%
Revenue 1Y (TTM)17.09%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
3.2 Future
The Earnings Per Share is expected to grow by 2.14% on average over the next years.
Based on estimates for the next years, RLI will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y15.15%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y4.18%
Revenue Next 3Y3.48%
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
Based on the Price/Earnings ratio of 19.48, the valuation of RLI can be described as rather expensive.
Based on the Price/Earnings ratio, RLI is valued a bit more expensive than 72.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, RLI is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.66, which indicates a rather expensive current valuation of RLI.
RLI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RLI is more expensive than 70.07% of the companies in the same industry.
RLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RLI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RLI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.12
EPS Next 2Y4.45%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
RLI has a Yearly Dividend Yield of 1.05%.
Compared to an average industry Dividend Yield of 3.26, RLI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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.
RLI has decreased its dividend 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.
RLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.94%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
58.43
-0.87 (-1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change-0.19%
Ins Owners0.86%
Ins Owner Change0.37%
Market Cap5.37B
Revenue(TTM)1.77B
Net Income(TTM)323.44M
Analysts50
Price Target67.58 (15.66%)
Short Float %2.68%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)0%
PT rev (3m)-4.39%
EPS NQ rev (1m)27.72%
EPS NQ rev (3m)29.1%
EPS NY rev (1m)4.41%
EPS NY rev (3m)7.09%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.66 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.09 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 13 |
EPS(TTM)3
EY5.13%
EPS(NY)3.13
Fwd EY5.36%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS19.78
BVpS18.89
TBVpS18.31
PEG (NY)1.29
PEG (5Y)1.12
Graham Number35.71
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%
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
WACC8.55%
ROIC/WACC0.67
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 Y15.15%
EPS Next 2Y4.45%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue 1Y (TTM)17.09%
Revenue growth 3Y14.5%
Revenue growth 5Y12.02%
Sales Q2Q%1.44%
Revenue Next Year4.58%
Revenue Next 2Y4.18%
Revenue Next 3Y3.48%
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%
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 3 / 10 and the dividend payout ratio is 64.94%.