RADIAN GROUP INC (RDN)

US7502361014 - Common Stock

27.45  -0.01 (-0.04%)

After market: 27.45 0 (0%)

Fundamental Rating

6

RDN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 103 industry peers in the Financial Services industry. RDN has an excellent financial health rating, but there are some minor concerns on its profitability. RDN has a valuation in line with the averages, but on the other hand it scores bad on growth. RDN also has an excellent dividend rating. With these ratings, RDN could be worth investigating further for dividend investing!.



6

1. Profitability

1.1 Basic Checks

In the past year RDN was profitable.
RDN had a positive operating cash flow in the past year.
Each year in the past 5 years RDN has been profitable.
RDN had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.44%, RDN belongs to the top of the industry, outperforming 89.32% of the companies in the same industry.
With a decent Return On Equity value of 15.00%, RDN is doing good in the industry, outperforming 76.70% of the companies in the same industry.
RDN has a better Return On Invested Capital (9.56%) than 84.47% of its industry peers.
Industry RankSector Rank
ROA 8.44%
ROE 15%
ROIC 9.56%
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

RDN has a Profit Margin of 50.66%. This is amongst the best in the industry. RDN outperforms 91.26% of its industry peers.
RDN's Profit Margin has been stable in the last couple of years.
RDN has a Operating Margin of 72.88%. This is amongst the best in the industry. RDN outperforms 92.23% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.
Industry RankSector Rank
OM 72.88%
PM (TTM) 50.66%
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

7

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 has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.15 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
RDN's Altman-Z score of 2.15 is fine compared to the rest of the industry. RDN outperforms 75.73% of its industry peers.
The Debt to FCF ratio of RDN is 4.73, which is a neutral value as it means it would take RDN, 4.73 years of fcf income to pay off all of its debts.
RDN has a Debt to FCF ratio of 4.73. This is in the better half of the industry: RDN outperforms 62.14% of its industry peers.
RDN has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RDN (0.40) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.73
Altman-Z 2.15
ROIC/WACC1.21
WACC7.87%

2.3 Liquidity

RDN has a Current Ratio of 3.44. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
RDN's Current ratio of 3.44 is amongst the best of the industry. RDN outperforms 88.35% of its industry peers.
RDN has a Quick Ratio of 3.44. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
RDN has a better Quick ratio (3.44) than 89.32% of its industry peers.
Industry RankSector Rank
Current Ratio 3.44
Quick Ratio 3.44

3

3. Growth

3.1 Past

The earnings per share for RDN have decreased strongly by -18.94% 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.
RDN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)-18.94%
EPS 3Y31.26%
EPS 5Y7.66%
EPS growth Q2Q-20.61%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Revenue growth Q2Q5.86%

3.2 Future

The Earnings Per Share is expected to decrease by -4.13% on average over the next years.
Based on estimates for the next years, RDN will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.
EPS Next Y-11.29%
EPS Next 2Y-4.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.23%
Revenue Next 2Y10.62%
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.
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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.90, the valuation of RDN can be described as very cheap.
Based on the Price/Earnings ratio, RDN is valued cheaper than 89.32% of the companies in the same industry.
RDN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
Based on the Price/Forward Earnings ratio of 7.95, 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 82.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. RDN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.9
Fwd PE 7.95

4.2 Price Multiples

RDN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDN is cheaper than 71.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.99
EV/EBITDA N/A

4.3 Compensation for Growth

RDN has a very decent profitability rating, which may justify a higher PE ratio.
RDN's earnings are expected to decrease with -4.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-4.13%
EPS Next 3YN/A

7

5. Dividend

5.1 Amount

RDN has a Yearly Dividend Yield of 3.57%.
Compared to an average industry Dividend Yield of 3.43, RDN pays a better dividend. On top of this RDN pays more dividend than 85.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, RDN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.57%

5.2 History

On average, the dividend of RDN grows each year by 140.15%, which is quite nice.
RDN has paid a dividend for at least 10 years, which is a reliable track record.
As RDN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)140.15%
Div Incr Years6
Div Non Decr Years7

5.3 Sustainability

22.92% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.
DP22.92%
EPS Next 2Y-4.13%
EPS Next 3YN/A

RADIAN GROUP INC

NYSE:RDN (2/23/2024, 7:08:36 PM)

After market: 27.45 0 (0%)

27.45

-0.01 (-0.04%)

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 Cap4.20B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.57%
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 6.9
Fwd PE 7.95
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)0.9
Profitability
Industry RankSector Rank
ROA 8.44%
ROE 15%
ROCE
ROIC
ROICexc
ROICexgc
OM 72.88%
PM (TTM) 50.66%
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 Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.44
Quick Ratio 3.44
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)-18.94%
EPS 3Y31.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.23%
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