RADIAN GROUP INC (RDN) Stock Fundamental Analysis
USA - NYSE:RDN - US7502361014 - Common Stock
35.27 USD
+0.01 (+0.03%)
35.27 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RDN. RDN was compared to 97 industry peers in the Financial Services industry. RDN has an average financial health and profitability rating. RDN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RDN was profitable.
In the past year RDN has reported a negative 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.
1.2 Ratios
With a decent Return On Assets value of 6.12%, RDN is doing good in the industry, outperforming 78.35% of the companies in the same industry.
RDN has a Return On Equity of 13.06%. This is in the better half of the industry: RDN outperforms 67.01% 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 73.20% of its industry peers.
RDN had an Average Return On Invested Capital over the past 3 years of 9.72%. This is in line with the industry average of 8.15%.
| 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's Profit Margin of 45.62% is amongst the best of the industry. RDN outperforms 89.69% of its industry peers.
RDN's Profit Margin has been stable in the last couple of years.
The Operating Margin of RDN (67.79%) is better than 91.75% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDN is still creating some value.
RDN has less shares outstanding than it did 1 year ago.
RDN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RDN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that RDN is in the distress zone and has some risk of bankruptcy.
RDN has a better Altman-Z score (1.73) than 70.10% 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 | 1.73 |
ROIC/WACC0.95
WACC7.52%
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.
The Current ratio of RDN (3.85) is better than 85.57% of its industry peers.
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.
RDN has a better Quick ratio (3.85) than 86.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
RDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.74%.
Measured over the past 5 years, RDN shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
RDN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.01%.
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)4.74%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%7.77%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%26.79%
3.2 Future
The Earnings Per Share is expected to grow by 4.69% on average over the next years.
RDN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y-1.35%
EPS Next 2Y3.32%
EPS Next 3Y4.69%
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.40, the valuation of RDN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 73.20% of the companies listed in the same industry.
RDN is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.98, which indicates a rather cheap valuation of RDN.
Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than the industry average as 67.01% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RDN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued a bit cheaper than the industry average as 75.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y3.32%
EPS Next 3Y4.69%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 2.89%.
Compared to an average industry Dividend Yield of 4.51, RDN pays a bit more dividend than its industry peers.
RDN's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector 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
5.3 Sustainability
RDN pays out 25.54% of its income as dividend. This is a sustainable payout ratio.
The dividend of RDN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.54%
EPS Next 2Y3.32%
EPS Next 3Y4.69%
35.27
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.51%
Inst Owner Change-0.86%
Ins Owners1.29%
Ins Owner Change5.67%
Market Cap4.78B
Revenue(TTM)1.29B
Net Income(TTM)586.54M
Analysts50.77
Price Target39.61 (12.31%)
Short Float %4.35%
Short Ratio6.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)0.43%
PT rev (3m)4.95%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)1.17%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.98 | ||
| P/S | 3.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)4.2
EY11.91%
EPS(NY)4.42
Fwd EY12.53%
FCF(TTM)-8.53
FCFYN/A
OCF(TTM)-8.51
OCFYN/A
SpS9.49
BVpS33.17
TBVpS33.17
PEG (NY)N/A
PEG (5Y)1.59
Graham Number55.99
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 | 1.73 |
F-Score3
WACC7.52%
ROIC/WACC0.95
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)4.74%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%7.77%
EPS Next Y-1.35%
EPS Next 2Y3.32%
EPS Next 3Y4.69%
EPS Next 5YN/A
Revenue 1Y (TTM)4.01%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%26.79%
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.45%
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 8.4 and the Price/Book (PB) ratio is 1.06.
What is the financial health of RADIAN GROUP INC (RDN) stock?
The financial health rating of RADIAN GROUP INC (RDN) is 5 / 10.