RADIAN GROUP INC (RDN) Fundamental Analysis & Valuation
NYSE:RDN • US7502361014
Current stock price
34.51 USD
-0.02 (-0.06%)
At close:
34.51 USD
0 (0%)
After Hours:
This RDN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RDN Profitability Analysis
1.1 Basic Checks
- In the past year RDN was profitable.
- RDN had a positive operating cash flow in the past year.
- RDN had positive earnings in each of the past 5 years.
- RDN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RDN's Return On Assets of 7.17% is amongst the best of the industry. RDN outperforms 84.85% of its industry peers.
- RDN has a Return On Equity of 12.19%. This is in the better half of the industry: RDN outperforms 62.63% of its industry peers.
- RDN has a Return On Invested Capital of 8.27%. This is in the better half of the industry: RDN outperforms 77.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RDN is in line with the industry average of 8.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.19% | ||
| ROIC | 8.27% |
ROA(3y)7.36%
ROA(5y)8.05%
ROE(3y)12.99%
ROE(5y)14.41%
ROIC(3y)8.9%
ROIC(5y)9.4%
1.3 Margins
- With an excellent Profit Margin value of 46.91%, RDN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- RDN's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 69.05%, RDN belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- RDN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 69.05% | ||
| PM (TTM) | 46.91% | ||
| GM | N/A |
OM growth 3Y-6.29%
OM growth 5Y13.37%
PM growth 3Y-7.98%
PM growth 5Y12.19%
GM growth 3YN/A
GM growth 5YN/A
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.
- The number of shares outstanding for RDN has been reduced compared to 1 year ago.
- Compared to 5 years ago, RDN has less shares outstanding
- RDN has a worse debt/assets ratio than last year.
2.2 Solvency
- RDN has an Altman-Z score of 2.24. 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.
- With a decent Altman-Z score value of 2.24, RDN is doing good in the industry, outperforming 79.80% of the companies in the same industry.
- RDN has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as RDN would need 9.59 years to pay back of all of its debts.
- RDN's Debt to FCF ratio of 9.59 is in line compared to the rest of the industry. RDN outperforms 54.55% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that RDN is not too dependend on debt financing.
- RDN has a Debt to Equity ratio of 0.23. This is in the better half of the industry: RDN outperforms 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.02
WACC8.08%
2.3 Liquidity
- RDN has a Current Ratio of 5.43. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of RDN (5.43) is better than 91.92% of its industry peers.
- RDN has a Quick Ratio of 5.43. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
- RDN's Quick ratio of 5.43 is amongst the best of the industry. RDN outperforms 91.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.43 | ||
| Quick Ratio | 5.43 |
3. RDN Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.90% over the past year.
- The Earnings Per Share has been growing by 19.89% on average over the past years. This is quite good.
- Looking at the last year, RDN shows a decrease in Revenue. The Revenue has decreased by -3.73% in the last year.
- RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.59% yearly.
EPS 1Y (TTM)2.9%
EPS 3Y-4.49%
EPS 5Y19.89%
EPS Q2Q%5.5%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y0.21%
Revenue growth 5Y-3.59%
Sales Q2Q%-0.57%
3.2 Future
- RDN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.71% yearly.
- Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 3.52% on average per year.
EPS Next Y16.93%
EPS Next 2Y12.59%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue Next Year3.05%
Revenue Next 2Y2.86%
Revenue Next 3Y3.52%
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.
- 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.
4. RDN Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.10, the valuation of RDN can be described as reasonable.
- Based on the Price/Earnings ratio, RDN is valued a bit cheaper than the industry average as 71.72% of the companies are valued more expensively.
- RDN is valuated cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
- RDN is valuated cheaply with a Price/Forward Earnings ratio of 6.93.
- Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.
- RDN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 6.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as RDN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.23 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)0.48
PEG (5Y)0.41
EPS Next 2Y12.59%
EPS Next 3Y9.71%
5. RDN Dividend Analysis
5.1 Amount
- RDN has a Yearly Dividend Yield of 2.95%.
- Compared to an average industry Dividend Yield of 1.86, RDN pays a bit more dividend than its industry peers.
- RDN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
- On average, the dividend of RDN grows each year by 15.69%, which is quite nice.
- 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)15.69%
Div Incr Years6
Div Non Decr Years16
5.3 Sustainability
- RDN pays out 24.99% 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.
DP24.99%
EPS Next 2Y12.59%
EPS Next 3Y9.71%
RDN Fundamentals: All Metrics, Ratios and Statistics
34.51
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners94.67%
Inst Owner Change-0.32%
Ins Owners1.29%
Ins Owner Change-1.34%
Market Cap4.65B
Revenue(TTM)1.24B
Net Income(TTM)582.64M
Analysts71.11
Price Target39.95 (15.76%)
Short Float %3.27%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend1.03
Dividend Growth(5Y)15.69%
DP24.99%
Div Incr Years6
Div Non Decr Years16
Ex-Date02-23 2026-02-23 (0.255)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.49%
Min EPS beat(2)4.92%
Max EPS beat(2)8.06%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)2.07%
Max EPS beat(4)8.06%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)13.25%
EPS beat(16)16
Avg EPS beat(16)24.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)-1.12%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)1
Avg Revenue beat(12)-3.21%
Revenue beat(16)5
Avg Revenue beat(16)2.48%
PT rev (1m)-2.08%
PT rev (3m)0%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)7.26%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)8.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 6.93 | ||
| P/S | 3.75 | ||
| P/FCF | 40.23 | ||
| P/OCF | 38.82 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)4.26
EY12.34%
EPS(NY)4.98
Fwd EY14.43%
FCF(TTM)0.86
FCFY2.49%
OCF(TTM)0.89
OCFY2.58%
SpS9.21
BVpS35.46
TBVpS35.46
PEG (NY)0.48
PEG (5Y)0.41
Graham Number58.3023 (68.94%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 12.19% | ||
| ROCE | 10.59% | ||
| ROIC | 8.27% | ||
| ROICexc | 8.3% | ||
| ROICexgc | 9.93% | ||
| OM | 69.05% | ||
| PM (TTM) | 46.91% | ||
| GM | N/A | ||
| FCFM | 9.31% |
ROA(3y)7.36%
ROA(5y)8.05%
ROE(3y)12.99%
ROE(5y)14.41%
ROIC(3y)8.9%
ROIC(5y)9.4%
ROICexc(3y)8.93%
ROICexc(5y)9.47%
ROICexgc(3y)10.49%
ROICexgc(5y)10.99%
ROCE(3y)11.4%
ROCE(5y)12.03%
ROICexgc growth 3Y-9.76%
ROICexgc growth 5Y9.92%
ROICexc growth 3Y-10.64%
ROICexc growth 5Y8.57%
OM growth 3Y-6.29%
OM growth 5Y13.37%
PM growth 3Y-7.98%
PM growth 5Y12.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 9.59 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 9.06% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 13.39 | ||
| Cash Conversion | 13.26% | ||
| Profit Quality | 19.85% | ||
| Current Ratio | 5.43 | ||
| Quick Ratio | 5.43 | ||
| Altman-Z | 2.24 |
F-Score7
WACC8.08%
ROIC/WACC1.02
Cap/Depr(3y)11.22%
Cap/Depr(5y)14.69%
Cap/Sales(3y)0.64%
Cap/Sales(5y)0.87%
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 Y16.93%
EPS Next 2Y12.59%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y0.21%
Revenue growth 5Y-3.59%
Sales Q2Q%-0.57%
Revenue Next Year3.05%
Revenue Next 2Y2.86%
Revenue Next 3Y3.52%
Revenue Next 5YN/A
EBIT growth 1Y-5.42%
EBIT growth 3Y-6.1%
EBIT growth 5Y9.3%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y117.35%
FCF growth 3Y-32.17%
FCF growth 5Y-29.01%
OCF growth 1Y118.06%
OCF growth 3Y-32.42%
OCF growth 5Y-28.87%
RADIAN GROUP INC / RDN Fundamental Analysis FAQ
What is the fundamental rating for RDN stock?
ChartMill assigns a fundamental rating of 6 / 10 to RDN.
What is the valuation status of RADIAN GROUP INC (RDN) stock?
ChartMill assigns a valuation rating of 7 / 10 to RADIAN GROUP INC (RDN). This can be considered as Undervalued.
What is the profitability of RDN stock?
RADIAN GROUP INC (RDN) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for RDN stock?
The Earnings per Share (EPS) of RADIAN GROUP INC (RDN) is expected to grow by 16.93% in the next year.
How sustainable is the dividend of RADIAN GROUP INC (RDN) stock?
The dividend rating of RADIAN GROUP INC (RDN) is 7 / 10 and the dividend payout ratio is 24.99%.