RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
25.93 USD
-0.08 (-0.31%)
25.93 USD
0 (0%)
Taking everything into account, RDWR scores 5 out of 10 in our fundamental rating. RDWR was compared to 282 industry peers in the Software industry. While RDWR has a great health rating, its profitability is only average at the moment. RDWR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RDWR had positive earnings in the past year.
RDWR had a positive 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.
RDWR 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 2.15%, RDWR is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
RDWR has a better Return On Equity (4.18%) than 67.38% of its industry peers.
RDWR has a Return On Invested Capital of 0.99%. This is in the better half of the industry: RDWR outperforms 62.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.18% | ||
| ROIC | 0.99% |
ROA(3y)-0.94%
ROA(5y)-0.01%
ROE(3y)-1.92%
ROE(5y)-0.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 4.90%, RDWR is doing good in the industry, outperforming 67.02% of the companies in the same industry.
In the last couple of years the Profit Margin of RDWR has declined.
With a decent Operating Margin value of 2.05%, RDWR is doing good in the industry, outperforming 62.41% of the companies in the same industry.
With an excellent Gross Margin value of 80.72%, RDWR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
RDWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | 4.9% | ||
| GM | 80.72% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.9%
PM growth 5Y-24.52%
GM growth 3Y-0.44%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RDWR is destroying value.
Compared to 1 year ago, RDWR has more shares outstanding
Compared to 5 years ago, RDWR has less shares outstanding
RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RDWR has an Altman-Z score of 3.08. This indicates that RDWR is financially healthy and has little risk of bankruptcy at the moment.
RDWR has a Altman-Z score (3.08) which is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.11
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.75 indicates that RDWR should not have too much problems paying its short term obligations.
The Current ratio of RDWR (1.75) is comparable to the rest of the industry.
RDWR has a Quick Ratio of 1.68. This is a normal value and indicates that RDWR is financially healthy and should not expect problems in meeting its short term obligations.
RDWR has a Quick ratio of 1.68. This is comparable to the rest of the industry: RDWR outperforms 54.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.50% over the past year.
RDWR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.47% yearly.
The Revenue has grown by 11.51% in the past year. This is quite good.
Measured over the past years, RDWR shows a small growth in Revenue. The Revenue has been growing by 1.75% on average per year.
EPS 1Y (TTM)87.5%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%40%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%10.31%
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 16.12% on average per year.
RDWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y31.37%
EPS Next 2Y17.3%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue Next Year9.57%
Revenue Next 2Y8.42%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 24.70, RDWR is valued on the expensive side.
71.28% of the companies in the same industry are more expensive than RDWR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.35, RDWR is valued at the same level.
The Price/Forward Earnings ratio is 21.92, which indicates a rather expensive current valuation of RDWR.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than the industry average as 73.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, RDWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 21.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDWR is valued a bit cheaper than 68.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RDWR is valued cheaper than 81.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 37.26 |
4.3 Compensation for Growth
The 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 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)52.35
EPS Next 2Y17.3%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
RDWR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.93
-0.08 (-0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.2%
Inst Owner Change0%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap1.11B
Analysts80
Price Target30.99 (19.51%)
Short Float %2.2%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)9.84%
Min EPS beat(2)4.25%
Max EPS beat(2)15.43%
EPS beat(4)4
Avg EPS beat(4)11.35%
Min EPS beat(4)4.25%
Max EPS beat(4)15.43%
EPS beat(8)7
Avg EPS beat(8)10.57%
EPS beat(12)7
Avg EPS beat(12)3.74%
EPS beat(16)10
Avg EPS beat(16)3.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)3
Avg Revenue beat(12)-2.01%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)0%
PT rev (3m)14.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.4%
EPS NY rev (1m)0%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 21.92 | ||
| P/S | 3.83 | ||
| P/FCF | 19.04 | ||
| P/OCF | 17.19 | ||
| P/B | 3.27 | ||
| P/tB | 4.24 | ||
| EV/EBITDA | 37.26 |
EPS(TTM)1.05
EY4.05%
EPS(NY)1.18
Fwd EY4.56%
FCF(TTM)1.36
FCFY5.25%
OCF(TTM)1.51
OCFY5.82%
SpS6.77
BVpS7.93
TBVpS6.11
PEG (NY)0.79
PEG (5Y)52.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.18% | ||
| ROCE | 1.25% | ||
| ROIC | 0.99% | ||
| ROICexc | 2.34% | ||
| ROICexgc | 3.82% | ||
| OM | 2.05% | ||
| PM (TTM) | 4.9% | ||
| GM | 80.72% | ||
| FCFM | 20.13% |
ROA(3y)-0.94%
ROA(5y)-0.01%
ROE(3y)-1.92%
ROE(5y)-0.23%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.9%
PM growth 5Y-24.52%
GM growth 3Y-0.44%
GM growth 5Y-0.35%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.54% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 361.48% | ||
| Profit Quality | 410.59% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 3.08 |
F-Score7
WACC9.33%
ROIC/WACC0.11
Cap/Depr(3y)140.31%
Cap/Depr(5y)111.59%
Cap/Sales(3y)5.74%
Cap/Sales(5y)4.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.5%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%40%
EPS Next Y31.37%
EPS Next 2Y17.3%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%10.31%
Revenue Next Year9.57%
Revenue Next 2Y8.42%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
EBIT growth 1Y130.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.98%
EBIT Next 3Y53.57%
EBIT Next 5Y29.36%
FCF growth 1Y725.97%
FCF growth 3Y0.08%
FCF growth 5Y8.22%
OCF growth 1Y337.74%
OCF growth 3Y-0.07%
OCF growth 5Y6.26%