RADWARE LTD (RDWR) Fundamental Analysis & Valuation

NASDAQ:RDWR • IL0010834765

Current stock price

25.74 USD
-1.3 (-4.81%)
At close:
25.74 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.
  • RDWR had a positive operating cash flow in the past year.
  • In multiple years RDWR reported negative net income over the last 5 years.
  • Of the past 5 years RDWR 4 years had a positive operating cash flow.
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 has a better Return On Assets (3.02%) than 68.70% of its industry peers.
  • The Return On Equity of RDWR (5.80%) is better than 69.06% of its industry peers.
  • The Return On Invested Capital of RDWR (1.42%) is better than 64.75% of its industry peers.
Industry RankSector Rank
ROA 3.02%
ROE 5.8%
ROIC 1.42%
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

  • With a decent Profit Margin value of 6.71%, RDWR is doing good in the industry, outperforming 67.63% of the companies in the same industry.
  • 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 67.63% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RDWR has grown nicely.
  • Looking at the Gross Margin, with a value of 80.67%, RDWR belongs to the top of the industry, outperforming 83.81% 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
  • 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.
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

  • An Altman-Z score of 3.22 indicates that RDWR is not in any danger for bankruptcy at the moment.
  • RDWR has a better Altman-Z score (3.22) than 67.27% of its industry peers.
  • RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.22
ROIC/WACC0.17
WACC8.53%
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.
  • With a Current ratio value of 1.63, RDWR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • A Quick Ratio of 1.57 indicates that RDWR should not have too much problems paying its short term obligations.
  • RDWR has a Quick ratio (1.57) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.57
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.
  • The Revenue has grown by 9.81% in the past year. This is quite good.
  • RDWR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.84% yearly.
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

  • RDWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
  • Based on estimates for the next years, RDWR will show a quite strong growth in Revenue. The Revenue will grow by 9.06% on average per year.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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

  • A Price/Earnings ratio of 22.38 indicates a rather expensive valuation of RDWR.
  • 62.95% 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 25.23, RDWR is valued at the same level.
  • A Price/Forward Earnings ratio of 22.75 indicates a rather expensive valuation of RDWR.
  • RDWR's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. RDWR is around the same levels.
Industry RankSector Rank
PE 22.38
Fwd PE 22.75
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

  • 63.31% of the companies in the same industry are more expensive than RDWR, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, RDWR is valued a bit cheaper than the industry average as 62.59% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 26.9
EV/EBITDA 32.79
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)1.91
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

  • RDWR does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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RDWR Fundamentals: All Metrics, Ratios and Statistics

RADWARE LTD

NASDAQ:RDWR (3/27/2026, 4:30:02 PM)

After market: 25.74 0 (0%)

25.74

-1.3 (-4.81%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners80.63%
Inst Owner Change1.26%
Ins Owners11.51%
Ins Owner Change0%
Market Cap1.12B
Revenue(TTM)301.85M
Net Income(TTM)20.26M
Analysts80
Price Target32.98 (28.13%)
Short Float %2.68%
Short Ratio3.98
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)5.43%
PT rev (3m)6.44%
EPS NQ rev (1m)4.21%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)-6.23%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)1.95%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 22.38
Fwd PE 22.75
P/S 3.7
P/FCF 26.9
P/OCF 22.32
P/B 3.2
P/tB 4.09
EV/EBITDA 32.79
EPS(TTM)1.15
EY4.47%
EPS(NY)1.13
Fwd EY4.4%
FCF(TTM)0.96
FCFY3.72%
OCF(TTM)1.15
OCFY4.48%
SpS6.95
BVpS8.04
TBVpS6.3
PEG (NY)N/A
PEG (5Y)1.91
Graham Number14.43
Profitability
Industry RankSector Rank
ROA 3.02%
ROE 5.8%
ROCE 2.44%
ROIC 1.42%
ROICexc 3.09%
ROICexgc 4.71%
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 5Y7.11%
ROICexc growth 3YN/A
ROICexc growth 5Y6.26%
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 1.57
Altman-Z 3.22
F-Score8
WACC8.53%
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.


How profitable is RADWARE LTD (RDWR) stock?

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


How financially healthy is RADWARE LTD?

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