RADIAN GROUP INC (RDN) Stock Fundamental Analysis
USA - NYSE:RDN - US7502361014 - Common Stock
33.94 USD
+0.19 (+0.56%)
33.94 USD
0 (0%)
Overall RDN gets a fundamental rating of 5 out of 10. We evaluated RDN against 98 industry peers in the Financial Services industry. RDN has an average financial health and profitability rating. RDN has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally RDN also has an excellent dividend rating. These ratings could make RDN a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year RDN was profitable.
RDN had a negative operating cash flow in the past year.
In the past 5 years RDN has always been profitable.
Of the past 5 years RDN 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.12%, RDN belongs to the best of the industry, outperforming 80.81% of the companies in the same industry.
The Return On Equity of RDN (13.06%) is better than 67.68% of its industry peers.
RDN has a Return On Invested Capital of 7.16%. This is in the better half of the industry: RDN outperforms 74.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDN is in line with the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.06% | ||
| ROIC | 7.16% |
ROA(3y)8.48%
ROA(5y)7.61%
ROE(3y)15.25%
ROE(5y)13.81%
ROIC(3y)9.72%
ROIC(5y)8.66%
1.3 Margins
RDN has a Profit Margin of 45.62%. This is amongst the best in the industry. RDN outperforms 91.92% of its industry peers.
RDN's Profit Margin has been stable in the last couple of years.
RDN's Operating Margin of 67.79% is amongst the best of the industry. RDN outperforms 91.92% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 67.79% | ||
| PM (TTM) | 45.62% | ||
| GM | N/A |
OM growth 3Y3.1%
OM growth 5Y2.67%
PM growth 3Y1.22%
PM growth 5Y1.25%
GM growth 3YN/A
GM growth 5YN/A
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.
Compared to 5 years ago, RDN has less shares outstanding
The debt/assets ratio for RDN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that RDN is in the distress zone and has some risk of bankruptcy.
RDN has a Altman-Z score of 1.71. This is in the better half of the industry: RDN outperforms 68.69% of its industry peers.
RDN has a Debt/Equity ratio of 0.71. This is a neutral value indicating RDN is somewhat dependend on debt financing.
RDN has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.96
WACC7.47%
2.3 Liquidity
RDN has a Current Ratio of 3.85. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.85, RDN belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
RDN has a Quick Ratio of 3.85. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.85, RDN belongs to the best of the industry, outperforming 86.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.49% over the past year.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, RDN shows a small growth in Revenue. The Revenue has grown by 0.24% in the last year.
Measured over the past years, RDN shows a decrease in Revenue. The Revenue has been decreasing by -3.31% on average per year.
EPS 1Y (TTM)2.49%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%2.02%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.09%
3.2 Future
The Earnings Per Share is expected to grow by 4.17% on average over the next years.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y-2.13%
EPS Next 2Y2.82%
EPS Next 3Y4.17%
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.24, the valuation of RDN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 77.78% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. RDN is valued rather cheaply when compared to this.
RDN is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RDN to the average of the S&P500 Index (22.55), we can say RDN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued a bit cheaper than the industry average as 76.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y2.82%
EPS Next 3Y4.17%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
RDN's Dividend Yield is a higher than the industry average which is at 4.77.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
On average, the dividend of RDN grows each year by 151.22%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)151.22%
Div Incr Years5
Div Non Decr Years15
5.3 Sustainability
25.54% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.
RDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.54%
EPS Next 2Y2.82%
EPS Next 3Y4.17%
33.94
+0.19 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.51%
Inst Owner Change-0.29%
Ins Owners1.29%
Ins Owner Change5.67%
Market Cap4.60B
Revenue(TTM)1.29B
Net Income(TTM)586.54M
Analysts50.77
Price Target39.61 (16.71%)
Short Float %4.35%
Short Ratio6.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.01
Dividend Growth(5Y)151.22%
DP25.54%
Div Incr Years5
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.12%
Min EPS beat(2)2.07%
Max EPS beat(2)2.18%
EPS beat(4)4
Avg EPS beat(4)8.39%
Min EPS beat(4)2.07%
Max EPS beat(4)17.18%
EPS beat(8)8
Avg EPS beat(8)12.69%
EPS beat(12)12
Avg EPS beat(12)21.12%
EPS beat(16)15
Avg EPS beat(16)26.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)-1.55%
Revenue beat(8)1
Avg Revenue beat(8)-2.54%
Revenue beat(12)3
Avg Revenue beat(12)0.74%
Revenue beat(16)7
Avg Revenue beat(16)6.72%
PT rev (1m)4.95%
PT rev (3m)5.43%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)2.64%
EPS NY rev (1m)0.37%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 7.75 | ||
| P/S | 3.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)4.12
EY12.14%
EPS(NY)4.38
Fwd EY12.9%
FCF(TTM)-8.53
FCFYN/A
OCF(TTM)-8.51
OCFYN/A
SpS9.49
BVpS33.17
TBVpS33.17
PEG (NY)N/A
PEG (5Y)1.56
Graham Number55.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.06% | ||
| ROCE | 9.13% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.18% | ||
| ROICexgc | 8.35% | ||
| OM | 67.79% | ||
| PM (TTM) | 45.62% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)8.48%
ROA(5y)7.61%
ROE(3y)15.25%
ROE(5y)13.81%
ROIC(3y)9.72%
ROIC(5y)8.66%
ROICexc(3y)9.77%
ROICexc(5y)8.74%
ROICexgc(3y)11.38%
ROICexgc(5y)10.06%
ROCE(3y)12.39%
ROCE(5y)11.04%
ROICexgc growth 3Y-0.5%
ROICexgc growth 5Y-5.38%
ROICexc growth 3Y-1.86%
ROICexc growth 5Y-5.66%
OM growth 3Y3.1%
OM growth 5Y2.67%
PM growth 3Y1.22%
PM growth 5Y1.25%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 3.55% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 1.71 |
F-Score3
WACC7.47%
ROIC/WACC0.96
Cap/Depr(3y)15.9%
Cap/Depr(5y)17.62%
Cap/Sales(3y)1.01%
Cap/Sales(5y)1.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.49%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%2.02%
EPS Next Y-2.13%
EPS Next 2Y2.82%
EPS Next 3Y4.17%
EPS Next 5YN/A
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.09%
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y-2.7%
EBIT growth 3Y2.07%
EBIT growth 5Y-0.73%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-403.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-387.71%
OCF growth 3YN/A
OCF growth 5YN/A
RADIAN GROUP INC / RDN FAQ
What is the fundamental rating for RDN stock?
ChartMill assigns a fundamental rating of 5 / 10 to RDN.
What is the valuation status for RDN stock?
ChartMill assigns a valuation rating of 5 / 10 to RADIAN GROUP INC (RDN). This can be considered as Fairly Valued.
What is the profitability of RDN stock?
RADIAN GROUP INC (RDN) has a profitability rating of 6 / 10.
What is the valuation of RADIAN GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RADIAN GROUP INC (RDN) is 8.24 and the Price/Book (PB) ratio is 1.02.
What is the financial health of RADIAN GROUP INC (RDN) stock?
The financial health rating of RADIAN GROUP INC (RDN) is 5 / 10.