RLI Stock Analysis: RLI | NYSE
Insurance - Property & Casualty | NYSE, USA | Market Cap: 5.748m USD | 12M Return: -14.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 55.7M
EPS Trend: 86.6%
Qual. Beats: 0
Rev. Trend: 54.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
RLI Corp. (NYSE: RLI) is a U.S.-based insurance holding company operating through three underwriting segments: Casualty, Property, and Surety, along with a reinsurance offering. The Casualty segment covers commercial and personal liability, commercial automobile, professional liability, workers compensation, and miscellaneous specialty risks; the Property segment writes commercial and personal property, marine, and homeowners coverage; and the Surety segment issues commercial and small contractor bonds, as well as bonds for individuals and small businesses. The company was incorporated in 1965, is headquartered in Peoria, Illinois, and trades as a mid-cap stock (approximately $4.9 billion market capitalization) within the Financials sector, specifically the Property & Casualty Insurance sub-industry.
RLI distributes its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. As a specialty P&C insurer, it focuses on niche and excess-and-surplus lines across multiple coverage types rather than competing directly with large national carriers in standard personal auto or homeowners markets, a common strategy among mid-cap specialty underwriters seeking diversified premium across uncorrelated risk categories.
- Specialty Casualty underwriting margins drive consistent underwriting profit
- Catastrophe losses and reinsurance costs pressure Property combined ratio
- Rising interest rates boost investment income on insurance float
| Net Income: 395.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -1.71 > 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 21.50%; Δ 16.01% > 0.5%) |
| Asset Turnover: 31.30% > 50% (prev 30.25%; Δ 1.05% > 0%) |
| Interest Coverage Ratio: 79.51 > 6 (EBIT TTM 507.0m / 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 1.80b / 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 21.50% / 37.51%) |
| 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 = -3.49 (Cap -4..+1) = AA |
As of July 10, 2026, the stock is trading at USD 60.14 with a total of 544,188 shares traded. Over the past week, the price has changed by -0.86%, over one month by +15.10%, over three months by +2.83% and over the past year by -14.69%.
Current recommended Stop Loss: 57.80 (which is 3.9% or 1.5 ATR below the current price).
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 | -4% |
P/E Trailing = 14.5734
P/E Forward = 22.0751
P/S = 3.0274
P/B = 3.1045
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 = 4.15b USD (5.75b + Debt 347.2m - CCE 1.94b)
Interest Coverage Ratio = 79.51 (Ebit TTM 507.0m / Interest Expense TTM 6.38m)
EV/FCF = 7.58x (Enterprise Value 4.15b / FCF TTM 548.0m)
FCF Yield = 13.20% (FCF TTM 548.0m / Enterprise Value 4.15b)
FCF Margin = 28.86% (FCF TTM 548.0m / 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 = 0.65 (Enterprise Value 4.15b / Total Assets 6.40b)
Interest Expense / Debt = 1.84% (Interest Expense 6.38m / Debt 347.2m)
Taxrate = 20.15% (99.7m / 494.7m)
NOPAT = 404.8m (EBIT 507.0m * (1 - 20.15%))
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 = -2.91 (Net Debt -1.60b / FCF TTM 548.0m)
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 = 17.89% (NOPAT 404.8m / Invested Capital 2.26b)
WACC = 5.71% (E(5.75b)/V(6.10b) * Re(5.97%) + D(347.2m)/V(6.10b) * Rd(1.84%) * (1-Tc(0.20)))
Discount Rate = 5.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 2.22 | Cagr: 0.02%
[DCF] Terminal Value 74.46% ; FCFF base≈564.0m ; Y1≈534.0m ; Y5≈502.8m
[DCF] Fair Price = 103.5 (EV 7.92b - Net Debt -1.60b = Equity 9.52b / Shares 91.9m; r=8.35% [WACC [floored]]; 5y FCF grow -6.82% → 2.50% )
EPS Correlation: 86.59 | EPS CAGR: 12.82% | SUE: 0.52 | # 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=-70% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.52 | Chg30d=-5.67% | Revisions=-73% | Analysts=8
EPS current Year (2026-12-31): EPS=2.73 | Chg30d=-1.13% | Revisions=-70% | GrowthEPS=-21.3% | GrowthRev=-4.9%
EPS next Year (2027-12-31): EPS=2.78 | Chg30d=-1.97% | Revisions=-62% | GrowthEPS=+1.7% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: -90% (up=0, down=27)