📊 RLI Key Takeaways
Is Rli Corp. (RLI) a Good Investment?
RLI demonstrates exceptional operational fundamentals with 21.4% net margins, 22.7% ROE, and outstanding free cash flow generation of $608.7M. However, the anomalous 1022.7% revenue growth paired with flat net income growth raises concerns about earnings quality and growth sustainability, warranting careful monitoring of the revenue drivers.
RLI exhibits exceptional underwriting profitability and capital efficiency, with a 26.9% operating margin, 21.4% net margin, 22.7% ROE, and strong free cash flow, supported by minimal leverage and 94x interest coverage. Despite flat net income and an anomalous revenue spike, cash generation and sustained EPS growth suggest resilient, high-quality earnings and prudent capital allocation.
Why Buy Rli Corp. Stock? RLI Key Strengths
- Outstanding profitability with 21.4% net margin and 26.9% operating margin
- Exceptional return on equity (22.7%) and strong return on assets (6.5%)
- Excellent free cash flow generation ($608.7M) with 32.3% FCF margin, providing capital flexibility
- Conservative capital structure with 0.06x debt-to-equity ratio and 94.4x interest coverage
- Strong EPS growth of 16.8% YoY indicating improving per-share value
- High ROE with strong operating/net margins indicating disciplined underwriting and expenses
- Conservative balance sheet with very low leverage and excellent interest coverage
- Robust operating cash flow and FCF conversion supporting capital flexibility
RLI Stock Risks: Rli Corp. Investment Risks
- Unexplained discrepancy between revenue growth (+1022.7% YoY) and net income growth (0% YoY) suggests potential one-time gains or acquisition-related impacts masking underlying earnings quality
- Extraordinarily low cash position of $51.6M relative to $6.2B asset base raises liquidity concerns if unexpected obligations arise
- Missing current and quick ratios prevent assessment of short-term liquidity adequacy and working capital health
- Massive revenue growth magnitude is atypical for insurance sector and may not be sustainable without clear organic/acquisition drivers
- Catastrophe and underwriting cycle exposure causing earnings volatility
- Reserve adequacy and claims inflation risk leading to adverse development
- Investment income sensitivity to interest rates and market performance
Key Metrics to Watch
- Organic revenue growth versus total revenue growth to isolate acquisition impact
- Combined ratio trend and underwriting profitability for insurance operations quality
- Cash flow sustainability relative to new revenue levels
- Working capital and current assets composition given minimal cash balance
- Combined ratio
- Net written premium growth
Rli Corp. (RLI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 32.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
RLI Profit Margin, ROE & Profitability Analysis
RLI vs Finance Sector: How Rli Corp. Compares
How Rli Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rli Corp. Stock Overvalued? RLI Valuation Analysis 2026
Based on fundamental analysis, Rli Corp. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rli Corp. Balance Sheet: RLI Debt, Cash & Liquidity
RLI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rli Corp.'s revenue has grown significantly by 60% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.31 reflects profitable operations.
RLI Revenue Growth, EPS Growth & YoY Performance
RLI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $470.0M | $63.2M | $1.03 |
| Q2 2025 | $416.4M | $63.2M | $0.89 |
| Q1 2025 | $407.7M | $63.2M | $0.68 |
| Q3 2024 | $331.7M | $13.5M | $0.29 |
| Q2 2024 | $381.9M | $77.7M | $1.69 |
| Q1 2024 | $364.9M | $98.8M | $2.15 |
| Q3 2023 | $331.7M | -$2.2M | $0.29 |
| Q2 2023 | $213.1M | -$2.2M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rli Corp. Dividends, Buybacks & Capital Allocation
RLI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rli Corp. (CIK: 0000084246)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RLI
What is the AI rating for RLI?
Rli Corp. (RLI) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RLI's key strengths?
Claude: Outstanding profitability with 21.4% net margin and 26.9% operating margin. Exceptional return on equity (22.7%) and strong return on assets (6.5%). ChatGPT: High ROE with strong operating/net margins indicating disciplined underwriting and expenses. Conservative balance sheet with very low leverage and excellent interest coverage.
What are the risks of investing in RLI?
Claude: Unexplained discrepancy between revenue growth (+1022.7% YoY) and net income growth (0% YoY) suggests potential one-time gains or acquisition-related impacts masking underlying earnings quality. Extraordinarily low cash position of $51.6M relative to $6.2B asset base raises liquidity concerns if unexpected obligations arise. ChatGPT: Catastrophe and underwriting cycle exposure causing earnings volatility. Reserve adequacy and claims inflation risk leading to adverse development.
What is RLI's revenue and growth?
Rli Corp. reported revenue of $1.9B.
Does RLI pay dividends?
Rli Corp. pays dividends, with $241.6M distributed to shareholders in the trailing twelve months.
Where can I find RLI SEC filings?
Official SEC filings for Rli Corp. (CIK: 0000084246) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RLI's EPS?
Rli Corp. has a diluted EPS of $4.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RLI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Rli Corp. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is RLI stock overvalued or undervalued?
Valuation metrics for RLI: ROE of 22.7% (sector avg: 12%), net margin of 21.4% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy RLI stock in 2026?
Our dual AI analysis gives Rli Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RLI's free cash flow?
Rli Corp.'s operating cash flow is $614.2M, with capital expenditures of $5.5M. FCF margin is 32.3%.
How does RLI compare to other Finance stocks?
Vs Finance sector averages: Net margin 21.4% (avg: 25%), ROE 22.7% (avg: 12%), current ratio N/A (avg: 1.2).