RLI (RLI) Beneish M-Score: -3.16 (As of Jun. 24, 2026)


RLI RLI Corp RLI
71 GF Score
Price $54.75
GF Value $77.35
Valuation Modestly Undervalued
! 2 Warning Signs
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What is RLI Beneish M-Score?

RLI RLI +1.69% 71 Beneish M-Score is -3.16 as of Jun. 24, 2026. GuruFocus rates RLI with a GF Score™ of 71/100 and a GF Value™ of $77.35 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 399 Insurance companies, RLI ranks better than 88.22% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RLI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.16   Med: -2.5   Max: -1.36
Current: -3.16

During the past 13 years, the highest Beneish M-Score of RLI was -1.36. The lowest was -3.16. And the median was -2.50.

RLI
71GF Score
RLI Corp RLI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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RLI Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of RLI for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9023+0.528 * 1+0.404 * 1.0012+0.892 * 1.0954+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1101+4.679 * -0.024763-0.327 * 2.6601
=-3.16

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $984 Mil.
Revenue was 423.87 + 465.693 + 509.264 + 499.826 = $1,899 Mil.
Gross Profit was 423.87 + 465.693 + 509.264 + 499.826 = $1,899 Mil.
Total Current Assets was $0 Mil.
Total Assets was $6,402 Mil.
Property, Plant and Equipment(Net PPE) was $40 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $17 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $297 Mil.
Net Income was 54.885 + 91.177 + 124.61 + 124.336 = $395 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 42.829 + 156.768 + 179.22 + 174.719 = $554 Mil.
 Total Receivables was $995 Mil.
Revenue was 407.665 + 439.116 + 469.995 + 416.442 = $1,733 Mil.
Gross Profit was 407.665 + 439.116 + 469.995 + 416.442 = $1,733 Mil.
Total Current Assets was $0 Mil.
Total Assets was $5,729 Mil.
Property, Plant and Equipment(Net PPE) was $42 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $14 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $100 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(983.954 / 1898.653) / (995.484 / 1733.218)
=0.518238 / 0.574356
=0.9023

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1733.218 / 1733.218) / (1898.653 / 1898.653)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 39.809) / 6401.823) / (1 - (0 + 42.328) / 5729.154)
=0.993782 / 0.992612
=1.0012

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1898.653 / 1733.218
=1.0954

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 42.328)) / (0 / (0 + 39.809))
=0 / 0
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(16.804 / 1898.653) / (13.818 / 1733.218)
=0.00885 / 0.007972
=1.1101

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((297.247 + 0) / 6401.823) / ((100 + 0) / 5729.154)
=0.046432 / 0.017455
=2.6601

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(395.008 - 0 - 553.536) / 6401.823
=-0.024763

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

RLI has a M-score of -3.16 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -3.16 mean?
RLI (RLI) has a Beneish M-Score of -3.16 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on RLI and its competitors. According to the industry distribution chart, RLI ranks #47 out of 399 companies in the Insurance industry, placing it in the top 11.8%.
Is RLI's Beneish M-Score too high?
RLI's current Beneish M-Score is -3.16. Based on the distribution chart, RLI ranks #47 out of 399 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, RLI has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RLI's Beneish M-Score compare to LMND and WTM?
According to the Insurance industry distribution chart, RLI ranks #47 out of 399 companies for Beneish M-Score. This places RLI in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on RLI and its competitors. RLI's current Beneish M-Score is -3.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RLI stock overvalued right now?
Based on GuruFocus' analysis, RLI (RLI) is currently considered Modestly Undervalued. The stock's GF Value™ is $77.35, compared to a current price of $54.75 — trading 29.2% below its estimated fair value. The current Beneish M-Score is -3.16. RLI's overall GF Score™ is 71/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For RLI (RLI), the current Beneish M-Score is -3.16 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is RLI (RLI) Overvalued in 2026?

Based on GuruFocus' analysis, RLI stock appears to be undervalued. The current stock price of $54.75 is trading 29.2% below its estimated GF Value™ of $77.35. GuruFocus considers RLI to be Modestly Undervalued.

Key valuation signals for RLI:

  • Beneish M-Score: -3.16
  • GF Value™: $77.35 vs. price of $54.75 (29.2% below fair value)
  • GF Score™: 71/100 with 2 warning signs

No single metric tells the full story. See the RLI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

RLI Business Description

Other Exchanges RL1:Germany
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.
71GF Score

Get the complete analysis for RLI

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$54.75
Price
$77.35
GF Value