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RLI

RLINYSE:RLI Stock Report

Market Cap

US$4.8b

7D

1.6%

1Y

7.9%

Updated

07 Dec, 2021

Data

Company Financials +
RLI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

RLI Stock Overview

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally.

RLI Competitors

Travelers Companies

NYSE:TRV

US$37.3b

Cincinnati Financial

NasdaqGS:CINF

US$18.7b

Markel

NYSE:MKL

US$17.0b

W. R. Berkley

NYSE:WRB

US$13.9b

Price History & Performance

Summary of all time highs, changes and price drops for RLI
Historical stock prices
Current Share PriceUS$107.04
52 Week HighUS$117.84
52 Week LowUS$95.53
Beta0.36
1 Month Change-5.71%
3 Month Change0.76%
1 Year Change7.94%
3 Year Change48.11%
5 Year Change72.62%
Change since IPO7,438.03%

Recent News & Updates

Nov 03

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.

Oct 05
Does RLI (NYSE:RLI) Deserve A Spot On Your Watchlist?

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...

Aug 03
RLI's (NYSE:RLI) Dividend Will Be Increased To US$0.25

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...

Jul 19

RLI Has Pricing Power, Valuable Inflation Hedge, But For A Price

Niche insurance means pricing power in an inflationary US environment. No virus related coverage in case Delta variant becomes a major problem despite vaccinations. Valuation is not excessive either, although premium. Also Maui Jim, which management tried to highlight in the Q1 call, is not defining of a thesis in RLI. Nonetheless, it overall seems a worthwhile exposure, although limited dividend and fair multiple gives us pause.

Shareholder Returns

RLIUS InsuranceUS Market
7D1.6%0.1%-2.6%
1Y7.9%23.0%17.8%

Return vs Industry: RLI underperformed the US Insurance industry which returned 19.1% over the past year.

Return vs Market: RLI underperformed the US Market which returned 16.5% over the past year.

Price Volatility

Is RLI's price volatile compared to industry and market?
RLI volatility
RLI Average Weekly Movement3.4%
Insurance Industry Average Movement4.2%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
2017869Jon Michaelhttps://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

How do RLI's earnings and revenue compare to its market cap?
RLI fundamental statistics
Market CapUS$4.84b
Earnings (TTM)US$267.88m
Revenue (TTM)US$1.16b

18.1x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLI income statement (TTM)
RevenueUS$1.16b
Cost of RevenueUS$749.53m
Gross ProfitUS$410.80m
ExpensesUS$142.93m
EarningsUS$267.88m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.92
Gross Margin35.40%
Net Profit Margin23.09%
Debt/Equity Ratio12.0%

How did RLI perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

17%

Payout Ratio

Valuation

Is RLI undervalued compared to its fair value and its price relative to the market?

18.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RLI ($107.04) is trading above our estimate of fair value ($93.1)

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 (18.1x) compared to the US Insurance industry average (10.5x).

PE vs Market: RLI is poor value based on its PE Ratio (18.1x) compared to the US market (16.8x).


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 (3.9x) compared to the US Insurance industry average (1.1x).


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 (9.8% 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?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RLI's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: RLI's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.62%).


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?

5.1yrs

Average management tenure


CEO

Jon Michael (68 yo)

20.92yrs

Tenure

US$4,712,442

Compensation

Mr. Jonathan Edward Michael, also known as Jon, has been Chairman of the Board of RLI Corp. since May 5, 2011 and has been its Chief Executive Officer since January 1, 2001. He served as President of RLI C...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD4.71M) is about average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RLI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: RLI's board of directors are considered experienced (6.7 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
  • Market Cap: US$4.843b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:19
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.