RADWARE LTD (RDWR)
IL0010834765 - Common Stock
RDWR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. No worries on liquidiy or solvency for RDWR as it has an excellent financial health rating, but there are worries on the profitability. RDWR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RDWR had positive earnings in the past year.
RDWR had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RDWR reported negative net income in multiple years.
Of the past 5 years RDWR 4 years had a positive operating cash flow.
1.2 Ratios
RDWR's Return On Assets of -3.78% is fine compared to the rest of the industry. RDWR outperforms 60.14% of its industry peers.
Looking at the Return On Equity, with a value of -7.60%, RDWR is in the better half of the industry, outperforming 61.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.78% | ||
| ROE | -7.6% | ||
| ROIC | N/A |
ROA(3y)-0.86%
ROA(5y)0.55%
ROE(3y)-1.85%
ROE(5y)0.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RDWR's Gross Margin of 80.21% is amongst the best of the industry. RDWR outperforms 82.25% of its industry peers.
In the last couple of years the Gross Margin of RDWR has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for RDWR so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.21% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.72%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
RDWR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RDWR has less shares outstanding
RDWR has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
RDWR has an Altman-Z score of 2.82. This is not the best score and indicates that RDWR is in the grey zone with still only limited risk for bankruptcy at the moment.
RDWR has a Altman-Z score (2.82) which is comparable to the rest of the industry.
RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.82 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
A Current Ratio of 2.43 indicates that RDWR has no problem at all paying its short term obligations.
RDWR has a Current ratio of 2.43. This is in the better half of the industry: RDWR outperforms 68.84% of its industry peers.
A Quick Ratio of 2.32 indicates that RDWR has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.32, RDWR is doing good in the industry, outperforming 67.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
RDWR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.23%.
The Earnings Per Share has been decreasing by -4.36% on average over the past years.
RDWR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.95%.
RDWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.20% yearly.
EPS 1Y (TTM)-36.23%
EPS 3Y-12.64%
EPS 5Y-4.36%
EPS growth Q2Q-23.53%
Revenue 1Y (TTM)-10.95%
Revenue growth 3Y1.48%
Revenue growth 5Y2.2%
Revenue growth Q2Q-12.21%
3.2 Future
Based on estimates for the next years, RDWR will show a very strong growth in Earnings Per Share. The EPS will grow by 31.90% on average per year.
Based on estimates for the next years, RDWR will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y50.51%
EPS Next 2Y35.97%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year2.42%
Revenue Next 2Y4.42%
Revenue Next 3Y5.23%
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 accelerating.
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
The Price/Earnings ratio is 46.30, which means the current valuation is very expensive for RDWR.
RDWR's Price/Earnings ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.83, RDWR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 30.76, the valuation of RDWR can be described as expensive.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than 69.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RDWR to the average of the S&P500 Index (20.47), we can say RDWR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.3 | ||
| Fwd PE | 30.76 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RDWR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RDWR's earnings are expected to grow with 31.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y35.97%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RADWARE LTD
NASDAQ:RDWR (5/16/2024, 7:14:01 PM)
After market: 20.37 0 (0%)20.37
+0.3 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap851.26M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 46.3 | ||
| Fwd PE | 30.76 | ||
| 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)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.78% | ||
| ROE | -7.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.21% | ||
| 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.32 | ||
| 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)
Growth
EPS 1Y (TTM)-36.23%
EPS 3Y-12.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y50.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.95%
Revenue growth 3Y1.48%
Revenue growth 5Y
Revenue growth 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