RADIAN GROUP INC (RDN) Stock Fundamental Analysis
NYSE:RDN - US7502361014 - Common Stock
34.93 USD
+0.21 (+0.6%)
We assign a fundamental rating of 5 out of 10 to RDN. RDN was compared to 100 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. With these ratings, RDN could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
RDN had positive earnings in the past year.
In the past year RDN has reported a negative cash flow from operations.
Each year in the past 5 years RDN has 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 82.00% of the companies in the same industry.
The Return On Equity of RDN (13.06%) is better than 68.00% of its industry peers.
The Return On Invested Capital of RDN (7.16%) is better than 75.00% 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 7.71%.
| 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
With an excellent Profit Margin value of 45.62%, RDN belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
RDN's Profit Margin has been stable in the last couple of years.
RDN's Operating Margin of 67.79% is amongst the best of the industry. RDN outperforms 92.00% 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
RDN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RDN has less shares outstanding
The number of shares outstanding for RDN has been reduced compared to 5 years ago.
Compared to 1 year ago, RDN has a worse debt to assets ratio.
2.2 Solvency
RDN has an Altman-Z score of 1.72. This is a bad value and indicates that RDN is not financially healthy and even has some risk of bankruptcy.
RDN's Altman-Z score of 1.72 is fine compared to the rest of the industry. RDN outperforms 71.00% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that RDN is somewhat dependend on debt financing.
The Debt to Equity ratio of RDN (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.89
WACC8.08%
2.3 Liquidity
A Current Ratio of 3.85 indicates that RDN has no problem at all paying its short term obligations.
RDN has a better Current ratio (3.85) than 87.00% of its industry peers.
A Quick Ratio of 3.85 indicates that RDN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.85, RDN belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| 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 2.49%.
RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
Looking at the last year, RDN shows a small growth in Revenue. The Revenue has grown by 0.24% in the last year.
RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.31% yearly.
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 3.24% 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-3.01%
EPS Next 2Y-0.17%
EPS Next 3Y3.24%
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.
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.48 indicates a reasonable valuation of RDN.
80.00% of the companies in the same industry are more expensive than RDN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, RDN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.47, the valuation of RDN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than 67.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, RDN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaper than 81.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.22 |
4.3 Compensation for Growth
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y-0.17%
EPS Next 3Y3.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, RDN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.27, RDN pays a bit more dividend than its industry peers.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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.
RDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.54%
EPS Next 2Y-0.17%
EPS Next 3Y3.24%
NYSE:RDN (8/27/2025, 12:47:59 PM)
34.93
+0.21 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-4.06%
Ins Owners1.19%
Ins Owner Change6.49%
Market Cap4.73B
Analysts51.43
Price Target37.74 (8.04%)
Short Float %5.25%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)0.45%
PT rev (3m)1.09%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)1.3%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 8.47 | ||
| P/S | 3.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.22 |
EPS(TTM)4.12
EY11.8%
EPS(NY)4.13
Fwd EY11.81%
FCF(TTM)-8.53
FCFYN/A
OCF(TTM)-8.51
OCFYN/A
SpS9.49
BVpS33.17
TBVpS33.17
PEG (NY)N/A
PEG (5Y)1.6
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 | 1.72 |
F-Score3
WACC8.08%
ROIC/WACC0.89
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-3.01%
EPS Next 2Y-0.17%
EPS Next 3Y3.24%
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