(RLI) RLI - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NYSE (USA) | Market Cap: 4.840m USD | Total Return: -30.1% in 12m
Avg Turnover: 48.7M
EPS Trend: -74.7%
Qual. Beats: 0
Rev. Trend: 54.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
RLI Corp. is a specialty insurance holding company based in Illinois that operates through three primary segments: Casualty, Property, and Surety. The Casualty division focuses on niche markets including commercial excess, professional liability, and transportation insurance, while the Property segment provides coverage for catastrophic risks such as earthquakes, floods, and wind. The Surety segment offers various performance and commercial bonds for contractors and businesses.
As a specialty insurer, RLI utilizes a decentralized underwriting model, allowing individual units to price niche risks that standard carriers often avoid. The company distributes its products through a diverse network of independent agents, wholesale brokers, and carrier partners to maintain broad market reach. Specialty insurers typically aim for lower loss ratios by focusing on technical expertise and disciplined underwriting in underserved market segments.
Investors can further examine the company’s historical underwriting performance and valuation metrics on ValueRay. RLI Corp. has been a publicly traded entity since 1965 and maintains a significant presence in the domestic property and casualty sector.
- Underwriting discipline in niche casualty markets sustains industry-leading combined ratios
- Catastrophe loss exposure in property segment impacts quarterly earnings volatility
- Rising interest rates boost investment income from fixed-income portfolio holdings
- Hardening insurance rates across commercial lines drive premium revenue growth
- Surety segment performance correlates with broader construction and infrastructure spending cycles
| Net Income: 395.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -1.67 > 1.0 |
| NWC/Revenue: -53.58% < 20% (prev -83.32%; Δ 29.74% < -1%) |
| CFO/TA 0.09 > 3% & CFO 553.5m > Net Income 395.0m |
| Net Debt (-1.60b) to EBITDA (515.1m): -3.10 < 3 |
| Current Ratio: 0.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (92.2m) vs 12m ago -0.37% < -2% |
| Gross Margin: 37.51% > 18% (prev 0.22%; Δ 3.73k% > 0.5%) |
| Asset Turnover: 31.30% > 50% (prev 30.25%; Δ 1.05% > 0%) |
| Interest Coverage Ratio: 79.51 > 6 (EBITDA TTM 515.1m / Interest Expense TTM 6.38m) |
| A: -0.16 (Total Current Assets 3.08b - Total Current Liabilities 4.09b) / Total Assets 6.40b |
| B: 0.30 (Retained Earnings 1.92b / Total Assets 6.40b) |
| C: 0.08 (EBIT TTM 507.0m / Avg Total Assets 6.07b) |
| D: 0.39 (Book Value of Equity 1.81b / Total Liabilities 4.61b) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 0.90 (Receivables 1.01b/1.02b, Revenue 1.90b/1.73b) |
| GMI: 0.57 (GM 37.51% / 21.50%) |
| AQI: 0.89 (AQ_t 0.51 / AQ_t-1 0.58) |
| SGI: 1.10 (Revenue 1.90b / 1.73b) |
| TATA: -0.02 (NI 395.0m - CFO 553.5m) / TA 6.40b) |
| Beneish M = -3.51 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 52.56 with a total of 524,100 shares traded.
Over the past week, the price has changed by +3.42%,
over one month by +2.16%,
over three months by -14.53% and
over the past year by -30.11%.
RLI has received a consensus analysts rating of 3.13. Therefore, it is recommended to hold RLI.
- StrongBuy: 0
- Buy: 1
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 57.8 | 9.9% |
P/E Trailing = 12.157
P/E Forward = 18.9753
P/S = 2.549
P/B = 2.6685
P/EG = 1.7305
Revenue TTM = 1.90b USD
EBIT TTM = 507.0m USD
EBITDA TTM = 515.1m USD
Long Term Debt = 297.2m USD (from longTermDebt, last quarter)
Short Term Debt = 50.0m USD (from shortTermDebt, last quarter)
Debt = 347.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.60b USD (calculated: Debt 347.2m - CCE 1.94b)
Enterprise Value = 3.24b USD (4.84b + Debt 347.2m - CCE 1.94b)
Interest Coverage Ratio = 79.51 (Ebit TTM 507.0m / Interest Expense TTM 6.38m)
EV/FCF = 5.89x (Enterprise Value 3.24b / FCF TTM 550.4m)
FCF Yield = 16.97% (FCF TTM 550.4m / Enterprise Value 3.24b)
FCF Margin = 28.99% (FCF TTM 550.4m / Revenue TTM 1.90b)
Net Margin = 20.80% (Net Income TTM 395.0m / Revenue TTM 1.90b)
Gross Margin = 37.51% ((Revenue TTM 1.90b - Cost of Revenue TTM 1.19b) / Revenue TTM)
Gross Margin QoQ = 54.41% (prev 34.21%)
Tobins Q-Ratio = 0.51 (Enterprise Value 3.24b / Total Assets 6.40b)
Interest Expense / Debt = 1.84% (Interest Expense 6.38m / Debt 347.2m)
Taxrate = 18.50% (12.5m / 67.3m)
NOPAT = 413.2m (EBIT 507.0m * (1 - 18.50%))
Current Ratio = 0.75 (Total Current Assets 3.08b / Total Current Liabilities 4.09b)
Debt / Equity = 0.19 (Debt 347.2m / totalStockholderEquity, last quarter 1.80b)
Debt / EBITDA = -3.10 (Net Debt -1.60b / EBITDA 515.1m)
Debt / FCF = -2.90 (Net Debt -1.60b / FCF TTM 550.4m)
Total Stockholder Equity = 1.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.51% (Net Income 395.0m / Total Assets 6.40b)
RoE = 22.00% (Net Income TTM 395.0m / Total Stockholder Equity 1.80b)
RoCE = 24.22% (EBIT 507.0m / Capital Employed (Equity 1.80b + L.T.Debt 297.2m))
RoIC = 17.52% (NOPAT 413.2m / Invested Capital 2.36b)
WACC = 5.92% (E(4.84b)/V(5.19b) * Re(6.24%) + D(347.2m)/V(5.19b) * Rd(1.84%) * (1-Tc(0.18)))
Discount Rate = 6.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 2.22 | Cagr: 0.02%
[DCF] Terminal Value 74.52% ; FCFF base≈565.5m ; Y1≈537.3m ; Y5≈509.5m
[DCF] Fair Price = 104.6 (EV 8.02b - Net Debt -1.60b = Equity 9.62b / Shares 91.9m; r=8.35% [WACC [floored]]; 5y FCF grow -6.42% → 2.50% )
EPS Correlation: -74.71 | EPS CAGR: -18.68% | SUE: -0.02 | # QB: 0
Revenue Correlation: 54.94 | Revenue CAGR: 5.94% | SUE: -0.46 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.69 | Chg30d=-3.81% | Revisions=-64% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.52 | Chg30d=-5.67% | Revisions=-67% | Analysts=8
EPS current Year (2026-12-31): EPS=2.73 | Chg30d=-1.13% | Revisions=-64% | GrowthEPS=-21.3% | GrowthRev=-4.9%
EPS next Year (2027-12-31): EPS=2.78 | Chg30d=-1.97% | Revisions=-56% | GrowthEPS=+1.7% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: -67%