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Is this Large Market Cap Stock target price reasonable for RLI Corp. (NYSE:RLI)?

The company in question is, RLI Corp. (NYSE:RLI) currently with a stock price of 68.66 (-0.01% today). The market cap for RLI Corp. is 2992.64, and is in the sector Financial, and Property & Casualty Insurance industry. The target price for RLI Corp. is 62. Currently RLI Corp. is trading with a P/E of 23.38, and a forward P/E of 30.43. Average volume for RLI Corp. is 118.26 and so far today it is 52935.

Performance in the last year for RLI Corp. has been 29.40%. For EPS growth, RLI Corp. has seen a growth of 0.80%, and is looking to grow in the next year to -2.29%. More long term stats show that EPS growth has been 0.60% over the last five years and could be 9.80% for the next five years. RLI Corp. has seen sales growth quarter over quarter at 2.80%, with EPS growth quarter over quarter at -22.50%. The 20-day simple moving average is -0.17%, with the 200-day simple moving average coming to 4.93%.

Since the IPO date for RLI Corp. on the 12/30/1987, RLI Corp. has seen performance year to date to be 12.20%. With RLI Corp. trading at 68.66, the dividend yield is 1.16%, and the EPS is 2.94.

So could RLI Corp., be undervalued? Well as said before P/E is 23.38. The PEG is 2.39, P/S is 3.71 and the P/B is at 3.29. The P/cash is 101.1, with P/free cash flow at 198.19.

RLI Corp. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.16, and total debt/equity at 0.16.

In terms of margins, RLI Corp. has a gross margin of *TBA, an operating margin of 22.70% and a profit margin of 16.20%.Payout ratio for RLI Corp. is 24.40%. Return on assets come to 4.60% with return on investment coming to 13.80%.

Insider ownership for RLI Corp., is at 2.70% and institutional ownership comes to 81.80%. Outstanding shares are at 43.58. While shares float is 41.52. The float short is currently 4.39%, and short ratio is 15.42.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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