Last Updated: 08 Nov 2024
Executive Summary
RLI Corp. (RLI) is a leading provider of property and casualty insurance in the United States. The company has a strong financial position with a market capitalization of $7.67 billion, EBITDA of $528.6 million, and a trailing PE ratio of 18.42. RLI's recent financial performance has been solid, with quarterly earnings growth of 6.1% and revenue growth of 0.417% year-over-year. The company's stock price has been trading in a range between $125.05 and $168.38 over the past 52 weeks.
Company Overview
RLI Corp. is headquartered in Peoria, Illinois. The company offers a range of insurance products, including property, casualty, surety, and specialty lines. RLI has a nationwide network of independent agents and brokers. The company's customers include businesses, individuals, and government entities.
Fundamental Analysis
RLI's financial performance has been solid in recent years. The company's revenue has grown at a CAGR of 5.4% over the past five years. Net income has grown at a CAGR of 8.3% over the same period. RLI's profit margin is 23.8%, which is above the industry average. The company's return on assets is 5.97% and its return on equity is 27.5%.
RLI has a strong balance sheet with $2.3 billion in cash and equivalents and $4.2 billion in total assets. The company's debt-to-equity ratio is 0.45, which is below the industry average. RLI's financial leverage is manageable and the company is well-positioned to continue growing its business.
Technical Analysis
RLI's stock price has been trading in a range between $125.05 and $168.38 over the past 52 weeks. The stock is currently trading at $166.34, which is near the top of its recent trading range. The stock's 50-day moving average is $155.94 and its 200-day moving average is $146.86. The stock's relative strength index (RSI) is 62.5, which indicates that it is overbought.
Short Term Outlook
RLI's stock price is likely to continue trading in a range in the near term. The stock is overbought and due for a pullback. However, the company's strong financial performance and positive analyst sentiment should provide support for the stock price.
Long Term Outlook
RLI's long-term outlook is positive. The company is a leader in the property and casualty insurance industry and has a strong financial position. RLI is well-positioned to continue growing its business and generating shareholder value over the long term.
Analyst Recommendations
Analysts are bullish on RLI Corp. The consensus analyst rating is "Buy" and the average analyst target price is $178.4. Two analysts have a "Strong Buy" rating on the stock, one analyst has a "Buy" rating, and five analysts have a "Hold" rating. No analysts have a "Sell" or "Strong Sell" rating on the stock.
