RADIAN GROUP INC (RDN) Fundamental Analysis & Valuation

NYSE:RDN • US7502361014

Current stock price

33.11 USD
+0.14 (+0.42%)
At close:
33.11 USD
0 (0%)
After Hours:

This RDN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. RDN Profitability Analysis

1.1 Basic Checks

  • RDN had positive earnings in the past year.
  • In the past year RDN had a positive cash flow from operations.
  • In the past 5 years RDN has always been profitable.
  • Of the past 5 years RDN 4 years had a positive operating cash flow.
RDN Yearly Net Income VS EBIT VS OCF VS FCFRDN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • RDN's Return On Assets of 7.17% is amongst the best of the industry. RDN outperforms 84.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.19%, RDN is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.27%, RDN is doing good in the industry, outperforming 79.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RDN is in line with the industry average of 8.07%.
Industry RankSector Rank
ROA 7.17%
ROE 12.19%
ROIC 8.27%
ROA(3y)7.36%
ROA(5y)8.05%
ROE(3y)12.99%
ROE(5y)14.41%
ROIC(3y)8.9%
ROIC(5y)9.4%
RDN Yearly ROA, ROE, ROICRDN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • RDN has a Profit Margin of 46.91%. This is amongst the best in the industry. RDN outperforms 89.00% of its industry peers.
  • RDN's Profit Margin has improved in the last couple of years.
  • The Operating Margin of RDN (69.05%) is better than 94.00% of its industry peers.
  • RDN's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 69.05%
PM (TTM) 46.91%
GM N/A
OM growth 3Y-6.29%
OM growth 5Y13.37%
PM growth 3Y-7.98%
PM growth 5Y12.19%
GM growth 3YN/A
GM growth 5YN/A
RDN Yearly Profit, Operating, Gross MarginsRDN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. RDN Health Analysis

2.1 Basic Checks

  • RDN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, RDN has less shares outstanding
  • The number of shares outstanding for RDN has been reduced compared to 5 years ago.
  • Compared to 1 year ago, RDN has a worse debt to assets ratio.
RDN Yearly Shares OutstandingRDN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
RDN Yearly Total Debt VS Total AssetsRDN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • RDN has an Altman-Z score of 2.21. This is not the best score and indicates that RDN is in the grey zone with still only limited risk for bankruptcy at the moment.
  • RDN's Altman-Z score of 2.21 is amongst the best of the industry. RDN outperforms 81.00% of its industry peers.
  • RDN has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as RDN would need 9.59 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 9.59, RDN perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.23 indicates that RDN is not too dependend on debt financing.
  • The Debt to Equity ratio of RDN (0.23) is better than 62.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 9.59
Altman-Z 2.21
ROIC/WACC1.02
WACC8.09%
RDN Yearly LT Debt VS Equity VS FCFRDN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 5.43 indicates that RDN has no problem at all paying its short term obligations.
  • RDN has a better Current ratio (5.43) than 93.00% of its industry peers.
  • A Quick Ratio of 5.43 indicates that RDN has no problem at all paying its short term obligations.
  • RDN's Quick ratio of 5.43 is amongst the best of the industry. RDN outperforms 93.00% of its industry peers.
Industry RankSector Rank
Current Ratio 5.43
Quick Ratio 5.43
RDN Yearly Current Assets VS Current LiabilitesRDN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. RDN Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.90% over the past year.
  • The Earnings Per Share has been growing by 19.89% on average over the past years. This is quite good.
  • Looking at the last year, RDN shows a decrease in Revenue. The Revenue has decreased by -3.73% in the last year.
  • The Revenue has been decreasing by -3.59% on average over the past years.
EPS 1Y (TTM)2.9%
EPS 3Y-4.49%
EPS 5Y19.89%
EPS Q2Q%5.5%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y0.21%
Revenue growth 5Y-3.59%
Sales Q2Q%-0.57%

3.2 Future

  • RDN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.43% yearly.
  • Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 3.52% on average per year.
EPS Next Y17.26%
EPS Next 2Y13.1%
EPS Next 3Y10.43%
EPS Next 5YN/A
Revenue Next Year3.05%
Revenue Next 2Y2.86%
Revenue Next 3Y3.52%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RDN Yearly Revenue VS EstimatesRDN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
RDN Yearly EPS VS EstimatesRDN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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Find the best growth stocksShow best growing peers

8

4. RDN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.77, which indicates a rather cheap valuation of RDN.
  • 72.00% of the companies in the same industry are more expensive than RDN, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, RDN is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 6.63, the valuation of RDN can be described as very cheap.
  • RDN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RDN is cheaper than 81.00% of the companies in the same industry.
  • RDN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 7.77
Fwd PE 6.63
RDN Price Earnings VS Forward Price EarningsRDN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
  • RDN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 39.01
EV/EBITDA 6.17
RDN Per share dataRDN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • RDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.45
PEG (5Y)0.39
EPS Next 2Y13.1%
EPS Next 3Y10.43%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. RDN Dividend Analysis

5.1 Amount

  • RDN has a Yearly Dividend Yield of 3.10%.
  • Compared to an average industry Dividend Yield of 2.50, RDN pays a bit more dividend than its industry peers.
  • RDN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.1%

5.2 History

  • The dividend of RDN is nicely growing with an annual growth rate of 15.69%!
  • RDN has paid a dividend for at least 10 years, which is 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)15.69%
Div Incr Years5
Div Non Decr Years15
RDN Yearly Dividends per shareRDN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • RDN pays out 24.99% of its income as dividend. This is a sustainable payout ratio.
  • RDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.99%
EPS Next 2Y13.1%
EPS Next 3Y10.43%
RDN Yearly Income VS Free CF VS DividendRDN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M
RDN Dividend Payout.RDN Dividend Payout, showing the Payout Ratio.RDN Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

RDN Fundamentals: All Metrics, Ratios and Statistics

RADIAN GROUP INC

NYSE:RDN (3/26/2026, 4:02:59 PM)

After market: 33.11 0 (0%)

33.11

+0.14 (+0.42%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners94.61%
Inst Owner Change-1.24%
Ins Owners1.4%
Ins Owner Change-2.17%
Market Cap4.51B
Revenue(TTM)1.24B
Net Income(TTM)582.64M
Analysts71.11
Price Target40.8 (23.23%)
Short Float %5%
Short Ratio5.06
Dividend
Industry RankSector Rank
Dividend Yield 3.1%
Yearly Dividend1.03
Dividend Growth(5Y)15.69%
DP24.99%
Div Incr Years5
Div Non Decr Years15
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.49%
Min EPS beat(2)4.92%
Max EPS beat(2)8.06%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)2.07%
Max EPS beat(4)8.06%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)13.25%
EPS beat(16)16
Avg EPS beat(16)24.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)-1.12%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)1
Avg Revenue beat(12)-3.21%
Revenue beat(16)5
Avg Revenue beat(16)2.48%
PT rev (1m)1.27%
PT rev (3m)2.56%
EPS NQ rev (1m)12.61%
EPS NQ rev (3m)10.09%
EPS NY rev (1m)9.16%
EPS NY rev (3m)8.98%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 7.77
Fwd PE 6.63
P/S 3.63
P/FCF 39.01
P/OCF 37.64
P/B 0.94
P/tB 0.94
EV/EBITDA 6.17
EPS(TTM)4.26
EY12.87%
EPS(NY)5
Fwd EY15.09%
FCF(TTM)0.85
FCFY2.56%
OCF(TTM)0.88
OCFY2.66%
SpS9.11
BVpS35.09
TBVpS35.09
PEG (NY)0.45
PEG (5Y)0.39
Graham Number57.99
Profitability
Industry RankSector Rank
ROA 7.17%
ROE 12.19%
ROCE 10.59%
ROIC 8.27%
ROICexc 8.3%
ROICexgc 9.93%
OM 69.05%
PM (TTM) 46.91%
GM N/A
FCFM 9.31%
ROA(3y)7.36%
ROA(5y)8.05%
ROE(3y)12.99%
ROE(5y)14.41%
ROIC(3y)8.9%
ROIC(5y)9.4%
ROICexc(3y)8.93%
ROICexc(5y)9.47%
ROICexgc(3y)10.49%
ROICexgc(5y)10.99%
ROCE(3y)11.4%
ROCE(5y)12.03%
ROICexgc growth 3Y-9.76%
ROICexgc growth 5Y9.92%
ROICexc growth 3Y-10.64%
ROICexc growth 5Y8.57%
OM growth 3Y-6.29%
OM growth 5Y13.37%
PM growth 3Y-7.98%
PM growth 5Y12.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 9.59
Debt/EBITDA 1.23
Cap/Depr 9.06%
Cap/Sales 0.34%
Interest Coverage 13.39
Cash Conversion 13.26%
Profit Quality 19.85%
Current Ratio 5.43
Quick Ratio 5.43
Altman-Z 2.21
F-Score7
WACC8.09%
ROIC/WACC1.02
Cap/Depr(3y)11.22%
Cap/Depr(5y)14.69%
Cap/Sales(3y)0.64%
Cap/Sales(5y)0.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.9%
EPS 3Y-4.49%
EPS 5Y19.89%
EPS Q2Q%5.5%
EPS Next Y17.26%
EPS Next 2Y13.1%
EPS Next 3Y10.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y0.21%
Revenue growth 5Y-3.59%
Sales Q2Q%-0.57%
Revenue Next Year3.05%
Revenue Next 2Y2.86%
Revenue Next 3Y3.52%
Revenue Next 5YN/A
EBIT growth 1Y-5.42%
EBIT growth 3Y-6.1%
EBIT growth 5Y9.3%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y117.35%
FCF growth 3Y-32.17%
FCF growth 5Y-29.01%
OCF growth 1Y118.06%
OCF growth 3Y-32.42%
OCF growth 5Y-28.87%

RADIAN GROUP INC / RDN Fundamental Analysis FAQ

What is the fundamental rating for RDN stock?

ChartMill assigns a fundamental rating of 6 / 10 to RDN.


What is the valuation status of RADIAN GROUP INC (RDN) stock?

ChartMill assigns a valuation rating of 7 / 10 to RADIAN GROUP INC (RDN). This can be considered as Undervalued.


Can you provide the profitability details for RADIAN GROUP INC?

RADIAN GROUP INC (RDN) has a profitability rating of 7 / 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 7.77 and the Price/Book (PB) ratio is 0.94.


What is the expected EPS growth for RADIAN GROUP INC (RDN) stock?

The Earnings per Share (EPS) of RADIAN GROUP INC (RDN) is expected to grow by 17.26% in the next year.