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RLI (RLI) Piotroski F-Score : 6 (As of Mar. 16, 2025)


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What is RLI Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

RLI has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for RLI's Piotroski F-Score or its related term are showing as below:

RLI' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of RLI was 8. The lowest was 4. And the median was 5.


RLI Piotroski F-Score Historical Data

The historical data trend for RLI's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RLI Piotroski F-Score Chart

RLI Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 6.00 5.00 6.00

RLI Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 4.00 7.00 6.00

Competitive Comparison of RLI's Piotroski F-Score

For the Insurance - Property & Casualty subindustry, RLI's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RLI's Piotroski F-Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, RLI's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where RLI's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 127.9 + 81.992 + 95.027 + 40.86 = $346 Mil.
Cash Flow from Operations was 70.946 + 141.825 + 219.368 + 128.08 = $560 Mil.
Revenue was 444.831 + 416.442 + 469.995 + 439.116 = $1,770 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(5180.221 + 5338.409 + 5511.673 + 5791.755 + 5628.802) / 5 = $5490.172 Mil.
Total Assets at the begining of this year (Dec23) was $5,180 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Assets was $5,629 Mil.
Total Liabilities was $4,107 Mil.
Net Income was 98.811 + 77.652 + 13.536 + 114.612 = $305 Mil.

Revenue was 364.923 + 381.862 + 331.694 + 433.515 = $1,512 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(4767.068 + 4836.219 + 5065.846 + 5083.526 + 5180.221) / 5 = $4986.576 Mil.
Total Assets at the begining of last year (Dec22) was $4,767 Mil.
Long-Term Debt & Capital Lease Obligation was $100 Mil.
Total Assets was $5,180 Mil.
Total Liabilities was $3,767 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

RLI's current Net Income (TTM) was 346. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

RLI's current Cash Flow from Operations (TTM) was 560. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=345.779/5180.221
=0.06674985

ROA (Last Year)=Net Income/Total Assets (Dec22)
=304.611/4767.068
=0.06389903

RLI's return on assets of this year was 0.06674985. RLI's return on assets of last year was 0.06389903. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

RLI's current Net Income (TTM) was 346. RLI's current Cash Flow from Operations (TTM) was 560. ==> 560 > 346 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=0/5490.172
=0

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=100/4986.576
=0.02005384

RLI's gearing of this year was 0. RLI's gearing of last year was 0.02005384. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Dec24)=Total Assets/Total Liabilities
=5628.802/4106.835
=1.37059366

Current Ratio (Last Year: Dec23)=Total Assets/Total Liabilities
=5180.221/3766.707
=1.37526519

RLI's current ratio of this year was 1.37059366. RLI's current ratio of last year was 1.37526519. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

RLI's number of shares in issue this year was 92.694. RLI's number of shares in issue last year was 92.218. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=345.779/1770.384
=0.19531299

Net Margin (Last Year: TTM)=Net Income/Revenue
=304.611/1511.994
=0.2014631

RLI's net margin of this year was 0.19531299. RLI's net margin of last year was 0.2014631. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=1770.384/5180.221
=0.34175839

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=1511.994/4767.068
=0.31717483

RLI's asset turnover of this year was 0.34175839. RLI's asset turnover of last year was 0.31717483. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

RLI has an F-score of 6 indicating the company's financial situation is typical for a stable company.

RLI  (NYSE:RLI) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


RLI Piotroski F-Score Related Terms

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RLI Business Description

Traded in Other Exchanges
Address
9025 North Lindbergh Drive, Peoria, IL, USA, 61615
RLI Corp underwrites property and casualty insurance through its subsidiaries. The company offers insurance coverage in the specialty admitted market, where the products are designed for special risks. It also offers products in the excess and surplus markets, which provides an alternative for customers with risks or loss exposures that generally cannot be written in the standard admitted market. RLI distributes property and casualty insurance through its wholly-owned branch offices that market to wholesale and retail producers. The company's insurance operation segments include Casualty, Property, and Surety and it derives a majority of its revenue from the Casualty segment.
Executives
David B. Duclos director 505 EAVLEVIEW BLVD, SUITE 100, EXTON PA 19341
Jennifer L Klobnak other: Sr. VP, Operations - RLI Ins. 9025 N LINDBERGH DRIVE, PEORIA IL 61615
Craig W Kliethermes other: VP, Actuarial RLI Insurance Co 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Jeffrey D Fick officer: Vice President Human Resources 9025 N. LINDBERGH DRIVE, 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Michael E Angelina director C/O ENDURANCE SERVICES LIMITED, 333 WESTCHESTER AVENUE, WHITE PLAINS NY 10471
Michael J Stone other: President RLI Insurance Compan C/O RLI CORP, 9025 N. LINDBERGH DR., PEORIA IL 61615
Paul Bennett Medini director THE ACE BUILDING, 17 WOODHOURNE AVE, HAMILTON BERMUDA D0 HM 08
Susan S. Fleming director C/O VIRTUS INVESTMENT PARTNERS, INC., 100 PEARL STREET, HARTFORD CT 06103
Seth Anthony Davis officer: Vice President, Controller 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Debbie Sharell Roberts director 204 W. 59TH STREET, BURR RIDGE IL 60527
Kaj Ahlmann director 17945 ROSEWOOD STREET, STILWELL KS 66085
Aaron Paul Diefenthaler officer: VP, CIO 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Restrepo Robert P Jr director
Calvin Jr Butler director 10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603
Todd Wayne Bryant officer: Vice President, Controller 9025 N. LINDBERGH DRIVE, PEORIA IL 61615