RADIAN GROUP INC (RDN) Stock Fundamental Analysis
USA - NYSE:RDN - US7502361014 - Common Stock
33.37 USD
-0.46 (-1.36%)
33.37 USD
0 (0%)
RDN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 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 is valued correctly, but it does not seem to be growing. RDN also has an excellent dividend rating. These ratings would make RDN suitable for dividend investing!
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.
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 6.12%, RDN belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Equity of RDN (13.06%) is better than 67.68% of its industry peers.
RDN's Return On Invested Capital of 7.16% is fine compared to the rest of the industry. RDN outperforms 74.75% of its industry peers.
RDN had an Average Return On Invested Capital over the past 3 years of 9.72%. This is above the industry average of 7.66%.
| 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
Looking at the Profit Margin, with a value of 45.62%, RDN belongs to the top of the industry, outperforming 90.91% 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.
RDN has a Operating Margin of 67.79%. This is amongst the best in the industry. RDN outperforms 91.92% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.
| 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
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 is higher compared to a year ago.
2.2 Solvency
RDN has an Altman-Z score of 1.70. This is a bad value and indicates that RDN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.70, RDN is in the better half of the industry, outperforming 71.72% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.97
WACC7.41%
2.3 Liquidity
A Current Ratio of 3.85 indicates that RDN has no problem at all paying its short term obligations.
The Current ratio of RDN (3.85) is better than 87.88% of its industry peers.
A Quick Ratio of 3.85 indicates that RDN has no problem at all paying its short term obligations.
RDN's Quick ratio of 3.85 is amongst the best of the industry. RDN outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.85 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.49% over the past year.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, RDN shows a small growth in Revenue. The Revenue has grown by 0.24% in the last year.
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)2.49%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%2.02%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.09%
3.2 Future
Based on estimates for the next years, RDN will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.
RDN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y-2.49%
EPS Next 2Y1.85%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.76%
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.
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
RDN is valuated reasonably with a Price/Earnings ratio of 8.10.
Based on the Price/Earnings ratio, RDN is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RDN to the average of the S&P500 Index (27.02), we can say RDN is valued rather cheaply.
A Price/Forward Earnings ratio of 7.77 indicates a rather cheap valuation of RDN.
Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than 68.69% of the companies in the same industry.
RDN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued a bit cheaper than 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y1.85%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, RDN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.06, RDN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, RDN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of RDN is nicely growing with an annual growth rate of 151.22%!
RDN has paid a dividend for at least 10 years, which is a reliable track record.
RDN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y1.85%
EPS Next 3Y4.14%
33.37
-0.46 (-1.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.51%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change5.62%
Market Cap4.52B
Analysts50.77
Price Target39.44 (18.19%)
Short Float %4.93%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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)4.5%
PT rev (3m)4.98%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)0.53%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.77 | ||
| P/S | 3.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)4.12
EY12.35%
EPS(NY)4.29
Fwd EY12.87%
FCF(TTM)-8.53
FCFYN/A
OCF(TTM)-8.51
OCFYN/A
SpS9.49
BVpS33.17
TBVpS33.17
PEG (NY)N/A
PEG (5Y)1.53
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%
ROICexcg growth 3Y-0.5%
ROICexcg 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 | 1.7 |
F-Score3
WACC7.41%
ROIC/WACC0.97
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)2.49%
EPS 3Y9.31%
EPS 5Y5.29%
EPS Q2Q%2.02%
EPS Next Y-2.49%
EPS Next 2Y1.85%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-1%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.09%
Revenue Next Year-0.05%
Revenue Next 2Y1.27%
Revenue Next 3Y1.76%
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