| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 0/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
RLI Stock Overview
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally.
RLI Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$110.10 |
| 52 Week High | US$117.84 |
| 52 Week Low | US$95.53 |
| Beta | 0.38 |
| 1 Month Change | 0.59% |
| 3 Month Change | 4.83% |
| 1 Year Change | 8.07% |
| 3 Year Change | 58.85% |
| 5 Year Change | 87.76% |
| Change since IPO | 7,653.52% |
Recent News & Updates
RLI Is Strong Despite Hurricane Effects And The Market Knows It
Hurricane Ida had an effect on RLI's Q3 net earnings, but the situation year to date just shows how well managed the company is. Combined ratios are falling overall, and the company is very well positioned for our current economic environment. Insurers, in general, benefit from having large short-term bond instruments resilient in returns to rising rates and have don't have a cost base that will rise with inflation. RLI remains especially well-positioned due to pricing power from a focus on niche markets, and surety markets in a supply chain risk environment where future contract rates could increase. While RLI is a great company, the markets recognise its quality, and it is unlikely to offer much more than a fair return, which means it doesn't fit our investment parameters.
Does RLI (NYSE:RLI) Deserve A Spot On Your Watchlist?
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
RLI's (NYSE:RLI) Dividend Will Be Increased To US$0.25
RLI Corp.'s ( NYSE:RLI ) dividend will be increasing to US$0.25 on 20th of September. Although the dividend is now...
Shareholder Returns
| RLI | US Insurance | US Market | |
|---|---|---|---|
| 7D | -1.9% | -0.02% | -0.3% |
| 1Y | 8.1% | 23.5% | 13.7% |
Return vs Industry: RLI underperformed the US Insurance industry which returned 23.5% over the past year.
Return vs Market: RLI underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| RLI volatility | |
|---|---|
| RLI Average Weekly Movement | 3.4% |
| Insurance Industry Average Movement | 4.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: RLI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RLI's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2017 | 869 | Craig Kliethermes | https://www.rlicorp.com |
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. This segment also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals.
RLI Fundamentals Summary
| RLI fundamental statistics | |
|---|---|
| Market Cap | US$4.98b |
| Earnings (TTM) | US$267.88m |
| Revenue (TTM) | US$1.16b |
18.6x
P/E Ratio4.3x
P/S RatioIs RLI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RLI income statement (TTM) | |
|---|---|
| Revenue | US$1.16b |
| Cost of Revenue | US$749.53m |
| Gross Profit | US$410.80m |
| Expenses | US$142.93m |
| Earnings | US$267.88m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 26, 2022
| Earnings per share (EPS) | 5.92 |
| Gross Margin | 35.40% |
| Net Profit Margin | 23.09% |
| Debt/Equity Ratio | 12.0% |
How did RLI perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield17%
Payout RatioValuation
Is RLI undervalued compared to its fair value and its price relative to the market?
18.6x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RLI ($110.1) is trading above our estimate of fair value ($94.48)
Significantly Below Fair Value: RLI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RLI is poor value based on its PE Ratio (18.6x) compared to the US Insurance industry average (11.4x).
PE vs Market: RLI is poor value based on its PE Ratio (18.6x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: RLI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RLI is overvalued based on its PB Ratio (4x) compared to the US Insurance industry average (1.2x).
Future Growth
How is RLI forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RLI's earnings are forecast to decline over the next 3 years (-10.9% per year).
Earnings vs Market: RLI's earnings are forecast to decline over the next 3 years (-10.9% per year).
High Growth Earnings: RLI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RLI's revenue (3.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: RLI's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RLI's Return on Equity is forecast to be low in 3 years time (14.2%).
Past Performance
How has RLI performed over the past 5 years?
20.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RLI has high quality earnings.
Growing Profit Margin: RLI's current net profit margins (23.1%) are higher than last year (13.4%).
Past Earnings Growth Analysis
Earnings Trend: RLI's earnings have grown significantly by 20.4% per year over the past 5 years.
Accelerating Growth: RLI's earnings growth over the past year (111.5%) exceeds its 5-year average (20.4% per year).
Earnings vs Industry: RLI earnings growth over the past year (111.5%) exceeded the Insurance industry 39.8%.
Return on Equity
High ROE: RLI's Return on Equity (21.4%) is considered high.
Financial Health
How is RLI's financial position?
Financial Position Analysis
Short Term Liabilities: RLI's short term assets ($886.1M) exceed its short term liabilities ($787.3M).
Long Term Liabilities: RLI's short term assets ($886.1M) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: RLI's net debt to equity ratio (4.8%) is considered satisfactory.
Reducing Debt: RLI's debt to equity ratio has reduced from 16.1% to 12% over the past 5 years.
Debt Coverage: RLI's debt is well covered by operating cash flow (254.3%).
Interest Coverage: RLI's interest payments on its debt are well covered by EBIT (40.3x coverage).
Balance Sheet
Dividend
What is RLI current dividend yield, its reliability and sustainability?
1.82%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RLI's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: RLI's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: RLI's dividend payments have been volatile in the past 10 years.
Growing Dividend: RLI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.5%), RLI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RLI's dividends in 3 years are forecast to be covered by earnings (76.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Craig Kliethermes (56 yo)
6yrs
Tenure
US$3,335,722
Compensation
Mr. Craig William Kliethermes, FCAS, MAAA, CPCU, serves as Chief Executive Officer at RLI Corp since January 01, 2022. He has been President at RLI Corp. since 2016 and served as its Chief Operating Office...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD3.34M) is below average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RLI's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: RLI's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
RLI Corp.'s employee growth, exchange listings and data sources
Key Information
- Name: RLI Corp.
- Ticker: RLI
- Exchange: NYSE
- Founded: 2017
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Implied Market Cap: US$4.981b
- Shares outstanding: 45.24m
- Website: https://www.rlicorp.com
Number of Employees
Location
- RLI Corp.
- 9025 North Lindbergh Drive
- Peoria
- Illinois
- 61615
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 23:34 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.