📊 AI Stock Rating — Summary

RLI Corporation has shown steady revenue growth, reaching $509 million in the most recent quarter, with net income improving to $125 million, resulting in an EPS of $1.35. The net margin has increased, reflecting greater profitability. The company maintained robust free cash flow at $179 million, with no capital expenditures reported in this quarter. Year-over-year, revenue and earnings have shown significant growth, supported by efficient cost management and increasing business volume. RLI exhibits strong profitability with its improving net margins, which display efficient operational management. The balance sheet remains solid, with $6.25 billion in total assets against $4.37 billion in total liabilities, and a low net debt of $47 million, highlighting financial resilience. Shareholder returns are emphasized through consistent dividend payouts, including a large $4.29 special dividend last year, despite no repurchase activity. A stable stock price may indicate balanced market sentiment, with the current analyst consensus price target suggesting a fair market valuation. Overall, RLI reflects sound financial health with a potential for continued shareholder value through dividend sustainability and consistent operational performance.

AI Score Breakdown

Revenue Growth — Score: 7/10

Revenue growth has been positive, with quarterly revenues rising from $407 million to $509 million over the past year. Growth is stable with consistent upward momentum, driven by increased market demand and effective execution.

Profitability — Score: 9/10

RLI is showcasing strong profitability with an upward EPS trend from $0.45 to $1.35 over four quarters. The company maintains efficient operations with good net margins.

Cash Flow Quality — Score: 8/10

Free cash flow remains strong and stable, supported by significant operating cash inflows and low capex. Dividends are consistent, though no buybacks are noted.

Leverage & Balance Sheet — Score: 9/10

Strong balance sheet with a low net debt of $47 million and total equity increasing significantly. Assets effectively cover obligations, indicating significant financial stability.

Shareholder Returns — Score: 6/10

Dividend payments are consistent, including a notable $4.29 special dividend. The stock price shows stability with analyst targets in line with current levels, suggesting fair market expectations.

Analyst Sentiment & Valuation — Score: 8/10

RLI's valuation appears appropriate with the analyst price target stable at $62. The company showcases strong ROE and low debt, favorably positioned relative to its peer group.

⚠ AI-generated — informational only, not financial advice.