RADIAN GROUP INC (RDN)

US7502361014 - Common Stock

33.24  +0.8 (+2.47%)

After market: 33.24 0 (0%)

Fundamental Rating

6

RDN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. RDN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RDN is valued correctly, but it does not seem to be growing. RDN also has an excellent dividend rating. These ratings could make RDN a good candidate for dividend investing.



7

1. Profitability

1.1 Basic Checks

In the past year RDN was profitable.
In the past year RDN had a positive cash flow from operations.
In the past 5 years RDN has always been profitable.
RDN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.94%, RDN belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
The Return On Equity of RDN (13.71%) is better than 69.61% of its industry peers.
RDN's Return On Invested Capital of 9.13% is amongst the best of the industry. RDN outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDN is above the industry average of 7.81%.
Industry RankSector Rank
ROA 7.94%
ROE 13.71%
ROIC 9.13%
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
ROIC(3y)9.81%
ROIC(5y)9.18%

1.3 Margins

RDN's Profit Margin of 48.51% is amongst the best of the industry. RDN outperforms 92.16% of its industry peers.
RDN's Profit Margin has been stable in the last couple of years.
RDN's Operating Margin of 70.79% is amongst the best of the industry. RDN outperforms 93.14% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.
Industry RankSector Rank
OM 70.79%
PM (TTM) 48.51%
GM N/A
OM growth 3Y22.26%
OM growth 5Y3.58%
PM growth 3Y21.12%
PM growth 5Y0.42%
GM growth 3YN/A
GM growth 5YN/A

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RDN is creating some value.
RDN has less shares outstanding than it did 1 year ago.
RDN has less shares outstanding than it did 5 years ago.
RDN has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.40 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
RDN's Altman-Z score of 2.40 is amongst the best of the industry. RDN outperforms 82.35% of its industry peers.
The Debt to FCF ratio of RDN is 3.00, which is a good value as it means it would take RDN, 3.00 years of fcf income to pay off all of its debts.
RDN's Debt to FCF ratio of 3.00 is fine compared to the rest of the industry. RDN outperforms 72.55% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that RDN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, RDN perfoms like the industry average, outperforming 59.80% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 3
Altman-Z 2.4
ROIC/WACC1.17
WACC7.81%

2.3 Liquidity

A Current Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
RDN's Current ratio of 19.56 is amongst the best of the industry. RDN outperforms 98.04% of its industry peers.
A Quick Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
RDN's Quick ratio of 19.56 is amongst the best of the industry. RDN outperforms 98.04% of its industry peers.
Industry RankSector Rank
Current Ratio 19.56
Quick Ratio 19.56

3

3. Growth

3.1 Past

The earnings per share for RDN have decreased strongly by -20.45% in the last year.
Measured over the past 5 years, RDN shows a small growth in Earnings Per Share. The EPS has been growing by 7.66% on average per year.
The Revenue has been growing slightly by 4.41% in the past year.
Measured over the past years, RDN shows a decrease in Revenue. The Revenue has been decreasing by -0.51% on average per year.
EPS 1Y (TTM)-20.45%
EPS 3Y31.26%
EPS 5Y7.66%
EPS growth Q2Q-8.57%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Revenue growth Q2Q4.42%

3.2 Future

RDN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.86% yearly.
Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y-11.61%
EPS Next 2Y-3.45%
EPS Next 3Y1.86%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y3.35%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.54, the valuation of RDN can be described as reasonable.
RDN's Price/Earnings ratio is rather cheap when compared to the industry. RDN is cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, RDN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.67, which indicates a very decent valuation of RDN.
RDN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RDN is cheaper than 77.45% of the companies in the same industry.
RDN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.54
Fwd PE 9.67

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDN indicates a rather cheap valuation: RDN is cheaper than 86.27% of the companies listed in the same industry.
RDN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDN is cheaper than 77.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.81
EV/EBITDA 6.83

4.3 Compensation for Growth

The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-3.45%
EPS Next 3Y1.86%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.96%, RDN has a reasonable but not impressive dividend return.
RDN's Dividend Yield is rather good when compared to the industry average which is at 3.47. RDN pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, RDN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.96%

5.2 History

On average, the dividend of RDN grows each year by 149.14%, which is quite nice.
RDN has been paying a dividend for at least 10 years, so it has a reliable track record.
RDN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)149.14%
Div Incr Years6
Div Non Decr Years7

5.3 Sustainability

24.19% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.
The dividend of RDN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.19%
EPS Next 2Y-3.45%
EPS Next 3Y1.86%

RADIAN GROUP INC

NYSE:RDN (3/27/2024, 8:04:00 PM)

After market: 33.24 0 (0%)

33.24

+0.8 (+2.47%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.04B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.96%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.54
Fwd PE 9.67
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.12
Profitability
Industry RankSector Rank
ROA 7.94%
ROE 13.71%
ROCE
ROIC
ROICexc
ROICexgc
OM 70.79%
PM (TTM) 48.51%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 19.56
Quick Ratio 19.56
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.45%
EPS 3Y31.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.41%
Revenue growth 3Y-4.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y