RADIAN GROUP INC (RDN)
US7502361014 - Common Stock
RDN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 104 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making RDN a very profitable company, without any liquidiy or solvency issues. 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!
1. Profitability
1.1 Basic Checks
In the past year RDN was profitable.
In the past year RDN had a positive cash flow from operations.
RDN had positive earnings in each of the past 5 years.
RDN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RDN has a better Return On Assets (7.70%) than 90.38% of its industry peers.
With a decent Return On Equity value of 13.46%, RDN is doing good in the industry, outperforming 63.46% of the companies in the same industry.
RDN has a Return On Invested Capital of 8.98%. This is amongst the best in the industry. RDN outperforms 82.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDN is above the industry average of 7.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 13.46% | ||
| ROIC | 8.98% |
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
ROIC(3y)9.81%
ROIC(5y)9.18%
1.3 Margins
RDN has a Profit Margin of 47.74%. This is amongst the best in the industry. RDN outperforms 91.35% of its industry peers.
In the last couple of years the Profit Margin of RDN has remained more or less at the same level.
Looking at the Operating Margin, with a value of 70.75%, RDN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of RDN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 70.75% | ||
| PM (TTM) | 47.74% | ||
| 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
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.
Compared to 1 year ago, RDN has less shares outstanding
RDN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RDN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RDN (2.33) is better than 77.88% of its industry peers.
RDN has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as RDN would need 3.82 years to pay back of all of its debts.
RDN's Debt to FCF ratio of 3.82 is fine compared to the rest of the industry. RDN outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that RDN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, RDN is in line with its industry, outperforming 59.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.13
WACC7.92%
2.3 Liquidity
RDN has a Current Ratio of 3.10. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.10, RDN belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
RDN has a Quick Ratio of 3.10. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.10, RDN belongs to the best of the industry, outperforming 83.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
RDN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.17%.
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 3.61%.
RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)-16.17%
EPS 3Y31.26%
EPS 5Y7.66%
EPS Q2Q%5.1%
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Sales Q2Q%1.12%
3.2 Future
The Earnings Per Share is expected to decrease by -0.40% on average over the next years.
Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y-5.45%
EPS Next 2Y-3.38%
EPS Next 3Y-0.4%
EPS Next 5YN/A
Revenue Next Year3.44%
Revenue Next 2Y2.98%
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.
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
The Price/Earnings ratio is 9.39, which indicates a very decent valuation of RDN.
Compared to the rest of the industry, the Price/Earnings ratio of RDN indicates a rather cheap valuation: RDN is cheaper than 83.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, RDN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.19, the valuation of RDN can be described as reasonable.
64.42% of the companies in the same industry are more expensive than RDN, based on the Price/Forward Earnings ratio.
RDN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaper than 87.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 67.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y-3.38%
EPS Next 3Y-0.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, RDN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, RDN pays a better dividend. On top of this RDN pays more dividend than 80.77% of the companies listed in the same industry.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of RDN grows each year by 149.14%, 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)149.14%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
RDN pays out 24.73% of its income as dividend. This is a sustainable payout ratio.
DP24.73%
EPS Next 2Y-3.38%
EPS Next 3Y-0.4%
RADIAN GROUP INC
NYSE:RDN (7/26/2024, 7:04:00 PM)
After market: 37.01 0 (0%)37.01
+0.57 (+1.56%)
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 Cap5.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 10.19 | ||
| 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)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 13.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 70.75% | ||
| PM (TTM) | 47.74% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.17%
EPS 3Y31.26%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-4.82%
Revenue growth 5Y
Sales 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