RLI Corp (RLI) Stock Analysis
Verdict: HOLD
Specialty underwriting margins and heavy insider buying signal floor support despite analyst concerns over 2026 earnings normalization.
Investment score: 64/100
Analysis as of
Is RLI Corp stock worth reviewing? The TradeMates thesis
RLI Corp shows robust financial health and strong insider confidence, but valuation is full relative to peers and long-term earnings estimates suggest a normalization phase.
7-factor investment score
- Valuation: 60/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 65/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 90/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 75/100 (weight 15%)
RLI Corp opportunities and risks
What speaks for RLI
- Deep Insider Conviction
What speaks against RLI
- Earnings Normalization Risk
Peers and competitors
- KNSL
- THG
- FAF
- MCY
- SIGI
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RLI | 14.2x | 3.0x | 11.5x | 37.5% | 20.8% | 9.8% |
| KNSL | 15.1x | 4.1x | 11.7x | 46.6% | 27.5% | 12.8% |
| THG | 10.8x | 1.1x | 8.6x | 34.5% | 10.8% | 16.4% |
| FAF | 10.8x | 1.2x | 5.1x | 74.3% | 11.2% | 11.5% |
| MCY | 7.2x | 1.0x | 4.6x | 43.9% | 13.7% | 23.6% |
| SIGI | 13.4x | 1.1x | 8.0x | 40.6% | 8.4% | 19.3% |
| Peer median | 10.8x | 1.1x | 8.0x | 43.9% | 11.2% | 16.4% |
Frequently asked questions about RLI Corp (RLI)
Is RLI stock a good investment?
The TradeMates model rates RLI Corp as HOLD with an investment score of 64/100. RLI Corp shows robust financial health and strong insider confidence, but valuation is full relative to peers and long-term earnings estimates suggest a normalization phase. This is algorithmic model output, not personal investment advice.
Is RLI stock a buy?
The TradeMates model verdict for RLI is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.