RLI (RLI) AI Stock Analysis

• Market Cap: $5.97B
• Dividend Yield: 4.02%
• Average Volume (3M): 540.80K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.28
• Revenue Growth: 10.29%
• EPS Growth: -4.70%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.84
• Shares Outstanding: 91,829,470
• 10 Day Avg. Volume: 658,941
• 30 Day Avg. Volume: 540,800
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 17.52
• 1Y Price Target: $74.00
• Price Target Upside: 14.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $76.00 ▲(17.99% Upside)

RLI's strong financial performance and stable dividend policy are significant strengths, contributing to a solid overall score. Technical analysis indicates some bearish trends, which slightly offset the positive financial and earnings call insights. The company's valuation is fair, with an attractive dividend yield supporting the score.

Positive Factors

Underwriting Profitability

Strong underwriting profitability across segments indicates effective risk management and pricing strategy, supporting long-term financial stability.

Investment Income Growth

Growth in investment income enhances RLI's revenue streams, providing a buffer against underwriting volatility and supporting financial resilience.

Dividend Stability

Consistent dividend increases reflect RLI's strong cash flow and commitment to shareholder returns, indicating financial health and stability.

Negative Factors

Flat Top Line Growth

Flat revenue growth and declining premiums in key segments may limit future profitability and market expansion opportunities.

Increased Competition in Property

Heightened competition and pricing pressure in the Property segment could erode margins and challenge RLI's market position.

Challenges in Transportation

Loss cost inflation and competitive pressures in the transportation sector may strain profitability and require strategic adjustments.

RLI Business Overview & Revenue Model

Company Description

RLI Corp (RLI) is a specialty insurance company that provides property and casualty insurance products and services. Operating primarily in the United States, RLI focuses on niche markets and offers a range of insurance solutions, including excess and surplus lines, as well as traditional insurance products. The company's core sectors include commercial lines, personal lines, and surety bonds, catering to various industries and individual clients.

How the Company Makes Money

RLI generates revenue primarily through the underwriting of insurance policies and the collection of premiums from policyholders. The company earns money by assessing risks and charging premiums that are intended to cover potential claims, operating expenses, and generate profit. Key revenue streams include the sale of specialty insurance products in commercial and personal lines, as well as fees associated with surety bonds. Additionally, RLI invests the premiums it collects in various financial instruments, which can provide further income through investment returns. The company's strategic partnerships with agents and brokers also contribute to its earnings by expanding its distribution network and market reach.

RLI Financial Statement Overview

Summary

RLI demonstrates strong financial health across all major verticals. The income statement shows high profitability despite some fluctuations in net margins. The balance sheet reflects a stable financial position with low leverage and strong equity. Cash flow metrics are exceptional, showcasing efficient cash management and growth in free cash flow. The company is well-positioned within the industry, though monitoring margin trends will be crucial.

Income Statement

The company's income statement shows strong profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is impressive, indicating high efficiency. However, the net profit margin saw a decline from the previous year, which requires attention. Revenue growth has been inconsistent, but the company has maintained positive EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

RLI's balance sheet is solid with a low debt-to-equity ratio, implying low financial leverage. The equity ratio is robust, suggesting financial stability. However, the return on equity (ROE) has fluctuated, reflecting variable profitability. Overall, the company maintains a strong equity base, minimizing financial risk.

Cash Flow

The cash flow metrics are strong, characterized by a significant growth in free cash flow. The operating cash flow to net income ratio is healthy, indicating efficient conversion of income to cash. The company's ability to generate free cash flow surpasses net income, highlighting robust cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.51B	1.70B	1.18B	983.63M
Gross Profit	1.77B	1.51B	731.77M	1.18B	983.63M
EBITDA	441.55M	-5.54M	736.71M	322.33M	184.64M
Net Income	345.78M	304.61M	583.41M	279.35M	157.09M
Balance Sheet
Total Assets	5.63B	5.18B	4.77B	4.51B	3.94B
Cash, Cash Equivalents and Short-Term Investments	114.70M	3.03B	59.05M	88.80M	62.22M
Total Debt	100.00M	100.00M	199.86M	199.68M	149.49M
Total Liabilities	4.11B	3.77B	3.59B	3.28B	2.80B
Stockholders Equity	1.52B	1.41B	1.18B	1.23B	1.14B
Cash Flow
Free Cash Flow	555.51M	458.34M	244.56M	376.60M	257.49M
Operating Cash Flow	560.22M	464.26M	250.45M	384.90M	263.26M
Investing Cash Flow	-318.87M	-211.80M	48.88M	-274.83M	-167.99M
Financing Cash Flow	-237.98M	-238.85M	-365.31M	-83.49M	-79.26M

RLI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLI, the sentiment is Negative. The current price of 64.41 is below the 20-day moving average (MA) of 65.99, below the 50-day MA of 66.76, and below the 200-day MA of 73.35, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLI.

RLI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	79 Outperform	$6.41B	11.80	17.27%	2.01%	4.47%	102.98%
AFG	78 Outperform	$12.11B	15.93	16.92%	6.33%	3.35%	-14.16%
RLI	76 Outperform	$5.97B	18.61	19.49%	4.02%	10.29%	-4.70%
SIGI	74 Outperform	$4.86B	13.07	11.39%	1.90%	12.27%	66.53%
AXS	71 Outperform	$7.50B	9.10	14.44%	1.83%	6.87%	43.53%
WTM	69 Neutral	$4.42B	21.32	4.33%	0.06%	8.08%	-57.76%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

RLI Corporate Events

RLI Announces Quarterly Dividend Amidst Strong Performance

On August 14, 2025, RLI Corp. announced that its Board of Directors approved a regular quarterly dividend of $0.16 per share, payable on September 19, 2025, to shareholders of record as of August 29, 2025. This announcement marks the continuation of RLI’s impressive track record of increasing dividends for 50 consecutive years, reflecting the company’s stable financial performance and commitment to delivering shareholder value.

The most recent analyst rating on (RLI) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.

RLI Corp. Announces New Chairman After Shareholder Meeting

On May 13, 2025, RLI Corp. held its annual meeting of shareholders where several key decisions were made. The shareholders elected nominees to the Board of Directors, appointed David B. Duclos as Chairman, approved executive compensation on an advisory basis, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2024.

The most recent analyst rating on (RLI) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.