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

  • 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 4 of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 7.17%, RDN belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
  • RDN's Return On Equity of 12.19% is fine compared to the rest of the industry. RDN outperforms 66.00% of its industry peers.
  • The Return On Invested Capital of RDN (8.27%) is better than 79.00% of its industry peers.
  • 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

  • With an excellent Profit Margin value of 46.91%, RDN belongs to the best of the industry, outperforming 89.00% of the companies in the same industry.
  • RDN's Profit Margin has improved in the last couple of years.
  • RDN has a better Operating Margin (69.05%) 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
  • Compared to 5 years ago, RDN has less shares outstanding
  • RDN has a worse debt/assets ratio than last year.
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

  • An Altman-Z score of 2.21 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of RDN (2.21) is better than 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.
  • Looking at the Debt to FCF ratio, with a value of 9.59, RDN is in line with its industry, outperforming 54.00% of the companies in the same industry.
  • RDN has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • 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's Current ratio of 5.43 is amongst the best of the industry. RDN outperforms 93.00% of its industry peers.
  • RDN has a Quick Ratio of 5.43. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 5.43, RDN belongs to the top of the industry, outperforming 93.00% of the companies in the same industry.
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.
  • RDN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.89% yearly.
  • RDN shows a decrease in Revenue. In the last year, the revenue decreased by -3.73%.
  • RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.59% yearly.
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

  • The Earnings Per Share is expected to grow by 10.43% on average over the next years. This is quite good.
  • 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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • Based on the Price/Earnings ratio of 7.77, the valuation of RDN can be described as very cheap.
  • 72.00% of the companies in the same industry are more expensive than RDN, based on the Price/Earnings ratio.
  • RDN is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • With a 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 22.51.
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as RDN.
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

  • RDN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of RDN 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%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.50, RDN pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.90, RDN pays a better dividend.
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 their dividend for at least 10 years, which is a reliable track record.
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

  • 24.99% 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.
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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RDN Fundamentals: All Metrics, Ratios and Statistics

RADIAN GROUP INC

NYSE:RDN (3/26/2026, 8:04:00 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 7 / 10 to RDN.


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

ChartMill assigns a valuation rating of 8 / 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.