RADWARE LTD (RDWR) Fundamental Analysis & Valuation

NASDAQ:RDWR • IL0010834765

Current stock price

26.725 USD
-0.07 (-0.28%)
At close:
26.725 USD
0 (0%)
After Hours:

This RDWR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RDWR Profitability Analysis

1.1 Basic Checks

  • In the past year RDWR was profitable.
  • In the past year RDWR had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: RDWR reported negative net income in multiple years.
  • RDWR had a positive operating cash flow in 4 of the past 5 years.
RDWR Yearly Net Income VS EBIT VS OCF VS FCFRDWR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M 60M

1.2 Ratios

  • RDWR's Return On Assets of 3.02% is fine compared to the rest of the industry. RDWR outperforms 66.54% of its industry peers.
  • RDWR has a Return On Equity of 5.80%. This is in the better half of the industry: RDWR outperforms 67.65% of its industry peers.
  • RDWR has a better Return On Invested Capital (1.43%) than 63.60% of its industry peers.
Industry RankSector Rank
ROA 3.02%
ROE 5.8%
ROIC 1.43%
ROA(3y)0.07%
ROA(5y)0.28%
ROE(3y)0.04%
ROE(5y)0.43%
ROIC(3y)N/A
ROIC(5y)N/A
RDWR Yearly ROA, ROE, ROICRDWR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4 -4 -6

1.3 Margins

  • The Profit Margin of RDWR (6.71%) is better than 65.81% of its industry peers.
  • In the last couple of years the Profit Margin of RDWR has grown nicely.
  • Looking at the Operating Margin, with a value of 3.86%, RDWR is in the better half of the industry, outperforming 66.54% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RDWR has grown nicely.
  • With an excellent Gross Margin value of 80.67%, RDWR belongs to the best of the industry, outperforming 84.56% of the companies in the same industry.
  • In the last couple of years the Gross Margin of RDWR has remained more or less at the same level.
Industry RankSector Rank
OM 3.86%
PM (TTM) 6.71%
GM 80.67%
OM growth 3YN/A
OM growth 5Y7.88%
PM growth 3YN/A
PM growth 5Y11.81%
GM growth 3Y-0.39%
GM growth 5Y-0.32%
RDWR Yearly Profit, Operating, Gross MarginsRDWR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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7

2. RDWR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDWR is destroying value.
  • The number of shares outstanding for RDWR has been increased compared to 1 year ago.
  • The number of shares outstanding for RDWR has been reduced compared to 5 years ago.
  • RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RDWR Yearly Shares OutstandingRDWR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
RDWR Yearly Total Debt VS Total AssetsRDWR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.2 Solvency

  • RDWR has an Altman-Z score of 3.14. This indicates that RDWR is financially healthy and has little risk of bankruptcy at the moment.
  • RDWR's Altman-Z score of 3.14 is fine compared to the rest of the industry. RDWR outperforms 64.34% of its industry peers.
  • There is no outstanding debt for RDWR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.14
ROIC/WACC0.17
WACC8.58%
RDWR Yearly LT Debt VS Equity VS FCFRDWR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M

2.3 Liquidity

  • A Current Ratio of 1.63 indicates that RDWR should not have too much problems paying its short term obligations.
  • RDWR has a Current ratio of 1.63. This is comparable to the rest of the industry: RDWR outperforms 48.53% of its industry peers.
  • RDWR has a Quick Ratio of 1.56. This is a normal value and indicates that RDWR is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.56, RDWR is in line with its industry, outperforming 46.69% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.56
RDWR Yearly Current Assets VS Current LiabilitesRDWR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RDWR Growth Analysis

3.1 Past

  • RDWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.72%, which is quite impressive.
  • Measured over the past years, RDWR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.75% on average per year.
  • RDWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.81%.
  • Measured over the past years, RDWR shows a small growth in Revenue. The Revenue has been growing by 3.84% on average per year.
EPS 1Y (TTM)33.72%
EPS 3Y18.56%
EPS 5Y11.75%
EPS Q2Q%18.52%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y0.95%
Revenue growth 5Y3.84%
Sales Q2Q%9.88%

3.2 Future

  • Based on estimates for the next years, RDWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.25% on average per year.
  • The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y-1.61%
EPS Next 2Y6.16%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y8.85%
Revenue Next 3Y10.16%
Revenue Next 5Y9.06%

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.
RDWR Yearly Revenue VS EstimatesRDWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 100M 200M 300M 400M 500M
RDWR Yearly EPS VS EstimatesRDWR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1

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4

4. RDWR Valuation Analysis

4.1 Price/Earnings Ratio

  • RDWR is valuated rather expensively with a Price/Earnings ratio of 23.24.
  • Based on the Price/Earnings ratio, RDWR is valued a bit cheaper than the industry average as 62.87% of the companies are valued more expensively.
  • RDWR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 23.62, RDWR is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RDWR is on the same level as its industry peers.
  • RDWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.36.
Industry RankSector Rank
PE 23.24
Fwd PE 23.62
RDWR Price Earnings VS Forward Price EarningsRDWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 64.34% of the companies in the same industry are more expensive than RDWR, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 62.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.21
EV/EBITDA 31.05
RDWR Per share dataRDWR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • RDWR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y6.16%
EPS Next 3Y8.25%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RDWR Dividend Analysis

5.1 Amount

  • No dividends for RDWR!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

RDWR Fundamentals: All Metrics, Ratios and Statistics

RADWARE LTD

NASDAQ:RDWR (5/1/2026, 8:00:01 PM)

After market: 26.725 0 (0%)

26.725

-0.07 (-0.28%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)02-11
Earnings (Next)05-07
Inst Owners82.83%
Inst Owner Change-0.39%
Ins Owners12.31%
Ins Owner Change15.94%
Market Cap1.13B
Revenue(TTM)301.85M
Net Income(TTM)20.26M
Analysts80
Price Target32.98 (23.41%)
Short Float %2.82%
Short Ratio3.62
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.42%
Min EPS beat(2)1.3%
Max EPS beat(2)3.54%
EPS beat(4)4
Avg EPS beat(4)6.13%
Min EPS beat(4)1.3%
Max EPS beat(4)15.43%
EPS beat(8)8
Avg EPS beat(8)11.3%
EPS beat(12)9
Avg EPS beat(12)4.95%
EPS beat(16)10
Avg EPS beat(16)2.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)0.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)4
Avg Revenue beat(16)-1.89%
PT rev (1m)0%
PT rev (3m)5.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 23.24
Fwd PE 23.62
P/S 3.75
P/FCF 27.21
P/OCF 22.57
P/B 3.24
P/tB 4.13
EV/EBITDA 31.05
EPS(TTM)1.15
EY4.3%
EPS(NY)1.13
Fwd EY4.23%
FCF(TTM)0.98
FCFY3.68%
OCF(TTM)1.18
OCFY4.43%
SpS7.13
BVpS8.26
TBVpS6.47
PEG (NY)N/A
PEG (5Y)1.98
Graham Number14.6169 (-45.31%)
Profitability
Industry RankSector Rank
ROA 3.02%
ROE 5.8%
ROCE 2.44%
ROIC 1.43%
ROICexc 3.1%
ROICexgc 4.73%
OM 3.86%
PM (TTM) 6.71%
GM 80.67%
FCFM 13.77%
ROA(3y)0.07%
ROA(5y)0.28%
ROE(3y)0.04%
ROE(5y)0.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y7.2%
ROICexc growth 3YN/A
ROICexc growth 5Y6.32%
OM growth 3YN/A
OM growth 5Y7.88%
PM growth 3YN/A
PM growth 5Y11.81%
GM growth 3Y-0.39%
GM growth 5Y-0.32%
F-Score8
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 73.06%
Cap/Sales 2.83%
Interest Coverage 250
Cash Conversion 214.72%
Profit Quality 205.14%
Current Ratio 1.63
Quick Ratio 1.56
Altman-Z 3.14
F-Score8
WACC8.58%
ROIC/WACC0.17
Cap/Depr(3y)54%
Cap/Depr(5y)109.78%
Cap/Sales(3y)2.28%
Cap/Sales(5y)4.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.72%
EPS 3Y18.56%
EPS 5Y11.75%
EPS Q2Q%18.52%
EPS Next Y-1.61%
EPS Next 2Y6.16%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue 1Y (TTM)9.81%
Revenue growth 3Y0.95%
Revenue growth 5Y3.84%
Sales Q2Q%9.88%
Revenue Next Year9.08%
Revenue Next 2Y8.85%
Revenue Next 3Y10.16%
Revenue Next 5Y9.06%
EBIT growth 1Y465.51%
EBIT growth 3YN/A
EBIT growth 5Y12.03%
EBIT Next Year41.48%
EBIT Next 3Y15.69%
EBIT Next 5Y14.32%
FCF growth 1Y-37.35%
FCF growth 3YN/A
FCF growth 5Y-5.52%
OCF growth 1Y-30.05%
OCF growth 3Y15.93%
OCF growth 5Y-4.74%

RADWARE LTD / RDWR Fundamental Analysis FAQ

What is the fundamental rating for RDWR stock?

ChartMill assigns a fundamental rating of 6 / 10 to RDWR.


What is the valuation status of RADWARE LTD (RDWR) stock?

ChartMill assigns a valuation rating of 4 / 10 to RADWARE LTD (RDWR). This can be considered as Fairly Valued.


What is the profitability of RDWR stock?

RADWARE LTD (RDWR) has a profitability rating of 6 / 10.


Can you provide the financial health for RDWR stock?

The financial health rating of RADWARE LTD (RDWR) is 7 / 10.


Can you provide the expected EPS growth for RDWR stock?

The Earnings per Share (EPS) of RADWARE LTD (RDWR) is expected to decline by -1.61% in the next year.