RADIAN GROUP INC (RDN) Stock Fundamental Analysis

NYSE:RDN • US7502361014

32.82 USD
-1.5 (-4.37%)
At close: Feb 13, 2026
32.13 USD
-0.69 (-2.1%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to RDN. RDN was compared to 97 industry peers in the Financial Services industry. Both the profitability and the financial health of RDN get a neutral evaluation. Nothing too spectacular is happening here. RDN has a valuation in line with the averages, but it does not seem to be growing. Finally RDN also has an excellent dividend rating. This makes RDN very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

6

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.
  • Each year in the past 5 years RDN has 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 0 500M -500M 1B

1.2 Ratios

  • The Return On Assets of RDN (7.02%) is better than 80.41% of its industry peers.
  • RDN has a Return On Equity of 12.38%. This is in the better half of the industry: RDN outperforms 68.04% of its industry peers.
  • RDN has a Return On Invested Capital of 8.30%. This is in the better half of the industry: RDN outperforms 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 8.62%.
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.
  • RDN's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 68.58%, RDN belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
  • 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. 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.
  • 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 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

  • An Altman-Z score of 2.12 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of RDN (2.12) is better than 76.29% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that RDN is not too dependend on debt financing.
  • RDN has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 2.12
ROIC/WACC1.03
WACC8.05%
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 77.32% of its industry peers.
  • A Quick Ratio of 2.06 indicates that RDN has no problem at all paying its short term obligations.
  • The Quick ratio of RDN (2.06) is better than 77.32% of its industry peers.
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. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.74% over the past year.
  • RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
  • RDN shows a decrease in Revenue. In the last year, the revenue decreased by -3.63%.
  • The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)4.74%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%7.77%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.85%

3.2 Future

  • RDN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.40% yearly.
  • The Revenue is expected to grow by 1.49% on average over the next years.
EPS Next Y3.44%
EPS Next 2Y5.13%
EPS Next 3Y7.4%
EPS Next 5YN/A
Revenue Next Year-0.92%
Revenue Next 2Y1.1%
Revenue Next 3Y1.49%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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.
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. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.81, the valuation of RDN can be described as very cheap.
  • RDN's Price/Earnings ratio is a bit cheaper when compared to the industry. RDN is cheaper than 77.32% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RDN to the average of the S&P500 Index (26.68), we can say RDN is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.17, 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 76.29% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, RDN is valued rather cheaply.
Industry RankSector Rank
PE 7.81
Fwd PE 7.17
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

  • RDN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RDN is cheaper than 89.69% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.97
RDN Per share dataRDN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RDN does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)1.48
EPS Next 2Y5.13%
EPS Next 3Y7.4%

More info and screens

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

7

5. Dividend

5.1 Amount

  • RDN has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.41, RDN pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.84, RDN pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.97%

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 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • RDN pays out 25.60% 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.
DP25.6%
EPS Next 2Y5.13%
EPS Next 3Y7.4%
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

RADIAN GROUP INC

NYSE:RDN (2/13/2026, 8:04:00 PM)

After market: 32.13 -0.69 (-2.1%)

32.82

-1.5 (-4.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-04
Earnings (Next)02-18
Inst Owners95.77%
Inst Owner Change-1.66%
Ins Owners1.24%
Ins Owner Change-3.3%
Market Cap4.45B
Revenue(TTM)1.26B
Net Income(TTM)576.09M
Analysts50
Price Target40.29 (22.76%)
Short Float %4.04%
Short Ratio5.38
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
Yearly Dividend1.01
Dividend Growth(5Y)151.22%
DP25.6%
Div Incr Years5
Div Non Decr Years15
Ex-DateN/A
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)0.85%
PT rev (3m)1.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.48%
EPS NY rev (1m)0.28%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
Industry RankSector Rank
PE 7.81
Fwd PE 7.17
P/S 3.54
P/FCF N/A
P/OCF N/A
P/B 0.96
P/tB 0.96
EV/EBITDA 5.97
EPS(TTM)4.2
EY12.8%
EPS(NY)4.58
Fwd EY13.94%
FCF(TTM)-4.13
FCFYN/A
OCF(TTM)-4.11
OCFYN/A
SpS9.27
BVpS34.34
TBVpS34.34
PEG (NY)2.27
PEG (5Y)1.48
Graham Number56.96
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 2.12
F-Score4
WACC8.05%
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)4.74%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%7.77%
EPS Next Y3.44%
EPS Next 2Y5.13%
EPS Next 3Y7.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.85%
Revenue Next Year-0.92%
Revenue Next 2Y1.1%
Revenue Next 3Y1.49%
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 7.81 and the Price/Book (PB) ratio is 0.96.


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 3.44% in the next year.