RADIAN GROUP INC (RDN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RDN - US7502361014 - Common Stock
34.73 USD
0 (0%)
35 USD
+0.27 (+0.78%)
Overall RDN gets a fundamental rating of 5 out of 10. We evaluated RDN against 97 industry peers in the Financial Services industry. RDN has only an average score on both its financial health and profitability. 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. 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 has reported a negative cash flow from operations.
In the past 5 years RDN has always 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 80.41% of its industry peers.
The Return On Equity of RDN (12.38%) is better than 67.01% of its industry peers.
The Return On Invested Capital of RDN (8.30%) is better than 78.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 45.88% is amongst the best of the industry. RDN outperforms 88.66% of its industry peers.
In the last couple of years the Profit Margin of RDN has remained more or less at the same level.
The Operating Margin of RDN (68.58%) is better than 93.81% 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.
RDN has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.16 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.16, RDN is doing good in the industry, outperforming 78.35% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RDN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, RDN is doing good in the industry, outperforming 61.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC1.11
WACC7.51%
2.3 Liquidity
A Current Ratio of 2.06 indicates that RDN has no problem at all paying its short term obligations.
RDN has a Current ratio of 2.06. This is in the better half of the industry: RDN outperforms 76.29% 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.
Looking at the Quick ratio, with a value of 2.06, RDN is in the better half of the industry, outperforming 77.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
RDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.74%.
RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
RDN shows a decrease in Revenue. In the last year, the revenue decreased by -3.63%.
The Revenue has been decreasing by -3.31% on average over the past years.
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
RDN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.96% yearly.
The Revenue is expected to grow by 1.10% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y5.22%
EPS Next 3Y5.96%
EPS Next 5YN/A
Revenue Next Year-0.67%
Revenue Next 2Y0.87%
Revenue Next 3Y1.1%
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 stable.
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 8.27.
Based on the Price/Earnings ratio, RDN is valued a bit cheaper than the industry average as 75.26% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.49. RDN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.58 indicates a rather cheap valuation of RDN.
Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than 70.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. RDN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaper than 87.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RDN may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)1.56
EPS Next 2Y5.22%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 2.94%.
RDN's Dividend Yield is a higher than the industry average which is at 3.96.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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 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
25.60% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.
RDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.6%
EPS Next 2Y5.22%
EPS Next 3Y5.96%
34.73
0 (0%)
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-7.03%
Market Cap4.71B
Revenue(TTM)1.26B
Net Income(TTM)576.09M
Analysts50.77
Price Target39.78 (14.54%)
Short Float %2.8%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend1.01
Dividend Growth(5Y)151.22%
DP25.6%
Div Incr Years5
Div Non Decr Years15
Ex-Date
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)5.41%
EPS NQ rev (1m)5.49%
EPS NQ rev (3m)9.6%
EPS NY rev (1m)4.56%
EPS NY rev (3m)6.34%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 7.58 | ||
| P/S | 3.75 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)4.2
EY12.09%
EPS(NY)4.58
Fwd EY13.2%
FCF(TTM)-4.13
FCFYN/A
OCF(TTM)-4.11
OCFYN/A
SpS9.27
BVpS34.34
TBVpS34.34
PEG (NY)2.63
PEG (5Y)1.56
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 | 2.16 |
F-Score4
WACC7.51%
ROIC/WACC1.11
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 2Y5.22%
EPS Next 3Y5.96%
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 for RDN stock?
ChartMill assigns a valuation rating of 5 / 10 to RADIAN GROUP INC (RDN). This can be considered as Fairly Valued.
What is the profitability of RDN stock?
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 8.27 and the Price/Book (PB) ratio is 1.01.
What is the financial health of RADIAN GROUP INC (RDN) stock?
The financial health rating of RADIAN GROUP INC (RDN) is 6 / 10.