RADIAN GROUP INC (RDN) Fundamental Analysis & Valuation

NYSE:RDN • US7502361014

34.59 USD
+0.14 (+0.41%)
Last: Mar 4, 2026, 10:57 AM
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This RDN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

RDN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. RDN has only an average score on both its financial health and profitability. RDN has a valuation in line with the averages, but it does not seem to be growing. RDN also has an excellent dividend rating. With these ratings, RDN could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

6

1. RDN Profitability Analysis

1.1 Basic Checks

  • In the past year RDN was profitable.
  • In the past year RDN has reported a negative cash flow from operations.
  • RDN had positive earnings in 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: RDN reported negative operating cash flow in multiple 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 0 500M -500M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 7.02%, RDN belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
  • With a decent Return On Equity value of 12.38%, RDN is doing good in the industry, outperforming 68.04% of the companies in the same industry.
  • RDN has a better Return On Invested Capital (8.30%) than 78.35% 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 8.35%.
Industry RankSector Rank
ROA 7.02%
ROE 12.38%
ROIC 8.3%
ROA(3y)8.48%
ROA(5y)7.61%
ROE(3y)15.25%
ROE(5y)13.81%
ROIC(3y)9.72%
ROIC(5y)8.66%
RDN Yearly ROA, ROE, ROICRDN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 45.88%, RDN belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RDN has remained more or less at the same level.
  • The Operating Margin of RDN (68.58%) is better than 93.81% of its industry peers.
  • In the last couple of years the Operating Margin of RDN has grown nicely.
Industry RankSector Rank
OM 68.58%
PM (TTM) 45.88%
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
RDN Yearly Profit, Operating, Gross MarginsRDN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. RDN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDN is still creating some value.
  • There is no outstanding debt for RDN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RDN Yearly Shares OutstandingRDN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B 8B

2.2 Solvency

  • RDN has an Altman-Z score of 2.15. 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.
  • Looking at the Altman-Z score, with a value of 2.15, RDN is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
  • RDN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • RDN has a Debt to Equity ratio of 0.24. This is in the better half of the industry: RDN outperforms 60.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 2.15
ROIC/WACC1.03
WACC8.02%
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 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.06 indicates that RDN has no problem at all paying its short term obligations.
  • The Current ratio of RDN (2.06) is better than 78.35% of its industry peers.
  • A Quick Ratio of 2.06 indicates that RDN has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.06, RDN is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 2.06
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 200M 400M 600M 800M

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

3

3. RDN Growth Analysis

3.1 Past

  • RDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.90%.
  • RDN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.89% yearly.
EPS 1Y (TTM)2.9%
EPS 3Y-4.49%
EPS 5Y19.89%
EPS Q2Q%5.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.57%

3.2 Future

  • Based on estimates for the next years, RDN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.72% on average per year.
  • The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y7.42%
EPS Next 2Y9.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.24%
Revenue Next 2Y2.86%
Revenue Next 3YN/A
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.
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 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 1 2 3 4 5

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Find the best growth stocksShow best growing peers

6

4. RDN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.12, which indicates a very decent valuation of RDN.
  • Based on the Price/Earnings ratio, RDN is valued a bit cheaper than 69.07% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.83, RDN is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 7.56, the valuation of RDN can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than the industry average as 73.20% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of RDN to the average of the S&P500 Index (24.95), we can say RDN is valued rather cheaply.
Industry RankSector Rank
PE 8.12
Fwd PE 7.56
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 cheaper than 88.66% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.21
RDN Per share dataRDN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • RDN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)0.41
EPS Next 2Y9.72%
EPS Next 3YN/A

More info and screens

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

7

5. RDN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.89%, RDN has a reasonable but not impressive dividend return.
  • RDN's Dividend Yield is a higher than the industry average which is at 2.29.
  • RDN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.89%

5.2 History

  • On average, the dividend of RDN grows each year by 151.22%, which is quite nice.
  • 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)151.22%
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

  • 25.60% 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.
DP25.6%
EPS Next 2Y9.72%
EPS Next 3YN/A
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 0 500M -500M
RDN Dividend Payout.RDN Dividend Payout, showing the Payout Ratio.RDN Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

RDN Fundamentals: All Metrics, Ratios and Statistics

RADIAN GROUP INC

NYSE:RDN (3/4/2026, 10:57:07 AM)

34.59

+0.14 (+0.41%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners95.77%
Inst Owner Change-1.26%
Ins Owners1.24%
Ins Owner Change-2.47%
Market Cap4.69B
Revenue(TTM)N/A
Net Income(TTM)576.09M
Analysts50
Price Target40.8 (17.95%)
Short Float %3.84%
Short Ratio4.25
Dividend
Industry RankSector Rank
Dividend Yield 2.89%
Yearly Dividend1.01
Dividend Growth(5Y)151.22%
DP25.6%
Div Incr Years5
Div Non Decr Years15
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.12%
Min EPS beat(2)2.18%
Max EPS beat(2)8.06%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)2.07%
Max EPS beat(4)17.18%
EPS beat(8)8
Avg EPS beat(8)10.25%
EPS beat(12)12
Avg EPS beat(12)16.06%
EPS beat(16)16
Avg EPS beat(16)27.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)-1.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.87%
Revenue beat(12)2
Avg Revenue beat(12)-0.76%
Revenue beat(16)6
Avg Revenue beat(16)4.85%
PT rev (1m)2.13%
PT rev (3m)2.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.65%
EPS NY rev (1m)0%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.85%
Valuation
Industry RankSector Rank
PE 8.12
Fwd PE 7.56
P/S 3.73
P/FCF N/A
P/OCF N/A
P/B 1.01
P/tB 1.01
EV/EBITDA 6.21
EPS(TTM)4.26
EY12.32%
EPS(NY)4.58
Fwd EY13.23%
FCF(TTM)-4.13
FCFYN/A
OCF(TTM)-4.11
OCFYN/A
SpS9.27
BVpS34.34
TBVpS34.34
PEG (NY)1.09
PEG (5Y)0.41
Graham Number57.37
Profitability
Industry RankSector Rank
ROA 7.02%
ROE 12.38%
ROCE 10.58%
ROIC 8.3%
ROICexc 8.32%
ROICexgc 9.92%
OM 68.58%
PM (TTM) 45.88%
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-Score4
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Debt/EBITDA 1.21
Cap/Depr 5.3%
Cap/Sales 0.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.06
Quick Ratio 2.06
Altman-Z 2.15
F-Score4
WACC8.02%
ROIC/WACC1.03
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)2.9%
EPS 3Y-4.49%
EPS 5Y19.89%
EPS Q2Q%5.5%
EPS Next Y7.42%
EPS Next 2Y9.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.57%
Revenue Next Year3.24%
Revenue Next 2Y2.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.96%
EBIT growth 3Y2.07%
EBIT growth 5Y-0.73%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-259.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-250.16%
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 of RADIAN GROUP INC (RDN) stock?

ChartMill assigns a valuation rating of 6 / 10 to RADIAN GROUP INC (RDN). This can be considered as Fairly Valued.


Can you provide the profitability details for RADIAN GROUP INC?

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 8.12 and the Price/Book (PB) ratio is 1.01.


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 7.42% in the next year.