RADIAN GROUP INC (RDN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RDN - US7502361014 - Common Stock
35.99 USD
-0.3 (-0.83%)
35.99 USD
0 (0%)
Taking everything into account, RDN scores 5 out of 10 in our fundamental rating. RDN was compared to 98 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 on the other hand it scores bad on growth. Finally 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
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.
1.2 Ratios
RDN has a better Return On Assets (7.02%) than 80.61% of its industry peers.
RDN has a Return On Equity of 12.38%. This is in the better half of the industry: RDN outperforms 67.35% 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 78.57% 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 8.44%.
| Industry Rank | Sector 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%
1.3 Margins
RDN has a better Profit Margin (45.88%) than 88.78% of its industry peers.
RDN's Profit Margin has been stable in the last couple of years.
The Operating Margin of RDN (68.58%) is better than 93.88% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
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.
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
Compared to 1 year ago, RDN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.19 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RDN (2.19) is better than 78.57% of its industry peers.
RDN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RDN's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. RDN outperforms 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.19 |
ROIC/WACC1.02
WACC8.17%
2.3 Liquidity
RDN has a Current Ratio of 2.06. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
RDN has a better Current ratio (2.06) than 77.55% of its industry peers.
RDN has a Quick Ratio of 2.06. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.06, RDN is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.74% over the past year.
Measured over the past 5 years, RDN shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
Looking at the last year, RDN shows a decrease in Revenue. The Revenue has decreased by -3.63% 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)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
Based on estimates for the next years, RDN will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 1.10% on average per year.
EPS Next Y3.15%
EPS Next 2Y5.36%
EPS Next 3Y6.03%
EPS Next 5YN/A
Revenue Next Year-0.67%
Revenue Next 2Y0.87%
Revenue Next 3Y1.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 8.57, which indicates a very decent valuation of RDN.
Based on the Price/Earnings ratio, RDN is valued a bit cheaper than 73.47% of the companies in the same industry.
RDN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of RDN.
72.45% 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 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
88.78% of the companies in the same industry are more expensive than RDN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)1.62
EPS Next 2Y5.36%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of RDN is nicely growing with an annual growth rate of 151.22%!
RDN has been paying a dividend for at least 10 years, so it has 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 25.60% 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 2Y5.36%
EPS Next 3Y6.03%
35.99
-0.3 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change0.89%
Ins Owners1.25%
Ins Owner Change-4.33%
Market Cap4.88B
Revenue(TTM)1.26B
Net Income(TTM)576.09M
Analysts50.77
Price Target39.95 (11%)
Short Float %3.91%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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)0.43%
PT rev (3m)5.86%
EPS NQ rev (1m)4.67%
EPS NQ rev (3m)9.6%
EPS NY rev (1m)4.56%
EPS NY rev (3m)5.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 7.83 | ||
| P/S | 3.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)4.2
EY11.67%
EPS(NY)4.6
Fwd EY12.77%
FCF(TTM)-4.13
FCFYN/A
OCF(TTM)-4.11
OCFYN/A
SpS9.27
BVpS34.34
TBVpS34.34
PEG (NY)2.72
PEG (5Y)1.62
Graham Number56.96
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.19 |
F-Score4
WACC8.17%
ROIC/WACC1.02
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 Y3.15%
EPS Next 2Y5.36%
EPS Next 3Y6.03%
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-0.67%
Revenue Next 2Y0.87%
Revenue Next 3Y1.1%
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 5 / 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 8.57 and the Price/Book (PB) ratio is 1.05.
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 3.15% in the next year.