24.06 USD
-0.34 (-1.39%)
24.06 USD
0 (0%)
RDWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. While RDWR has a great health rating, its profitability is only average at the moment. RDWR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RDWR was profitable.
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 2.52%, RDWR is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
With a decent Return On Equity value of 4.78%, RDWR is doing good in the industry, outperforming 67.75% of the companies in the same industry.
The Return On Invested Capital of RDWR (1.47%) is better than 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.78% | ||
| ROIC | 1.47% |
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 5.66%, RDWR is doing good in the industry, outperforming 65.22% of the companies in the same industry.
RDWR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.05%, RDWR is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
With an excellent Gross Margin value of 80.70%, RDWR belongs to the best of the industry, outperforming 82.61% 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 | 3.05% | ||
| PM (TTM) | 5.66% | ||
| GM | 80.7% |
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
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.
2.2 Solvency
An Altman-Z score of 3.01 indicates that RDWR is not in any danger for bankruptcy at the moment.
RDWR's Altman-Z score of 3.01 is fine compared to the rest of the industry. RDWR outperforms 60.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.16
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.68 indicates that RDWR should not have too much problems paying its short term obligations.
RDWR's Current ratio of 1.68 is in line compared to the rest of the industry. RDWR outperforms 51.09% of its industry peers.
RDWR has a Quick Ratio of 1.60. This is a normal value and indicates that RDWR is financially healthy and should not expect problems in meeting its short term obligations.
RDWR's Quick ratio of 1.60 is in line compared to the rest of the industry. RDWR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.78% over the past year.
Measured over the past 5 years, RDWR shows a small growth in Earnings Per Share. The EPS has been growing by 0.47% on average per year.
Looking at the last year, RDWR shows a quite strong growth in Revenue. The Revenue has grown by 10.40% in the last year.
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)52.78%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%21.74%
Revenue 1Y (TTM)10.4%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 16.12% on average over the next years. This is quite good.
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 Y34.62%
EPS Next 2Y18.45%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue Next Year9.82%
Revenue Next 2Y8.62%
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
A Price/Earnings ratio of 21.87 indicates a rather expensive valuation of RDWR.
72.83% of the companies in the same industry are more expensive than RDWR, based on the Price/Earnings ratio.
RDWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
RDWR is valuated rather expensively with a Price/Forward Earnings ratio of 19.94.
74.28% of the companies in the same industry are more expensive than RDWR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, RDWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 19.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDWR is valued a bit cheaper than 68.48% of the companies in the same industry.
RDWR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 72.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.93 | ||
| EV/EBITDA | 31.37 |
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 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)46.37
EPS Next 2Y18.45%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
RDWR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.06
-0.34 (-1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners79.95%
Inst Owner Change0%
Ins Owners11.51%
Ins Owner ChangeN/A
Market Cap1.04B
Revenue(TTM)294.64M
Net Income(TTM)16.67M
Analysts80
Price Target29.71 (23.48%)
Short Float %1.76%
Short Ratio2.93
Dividend
| Industry Rank | Sector 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)2.77%
Min EPS beat(2)1.3%
Max EPS beat(2)4.25%
EPS beat(4)4
Avg EPS beat(4)8.13%
Min EPS beat(4)1.3%
Max EPS beat(4)15.43%
EPS beat(8)8
Avg EPS beat(8)11.64%
EPS beat(12)8
Avg EPS beat(12)4.51%
EPS beat(16)10
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-1.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)0.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)-4.11%
PT rev (3m)-4.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)0%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 19.94 | ||
| P/S | 3.55 | ||
| P/FCF | 26.93 | ||
| P/OCF | 22.96 | ||
| P/B | 3 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 31.37 |
EPS(TTM)1.1
EY4.57%
EPS(NY)1.21
Fwd EY5.02%
FCF(TTM)0.89
FCFY3.71%
OCF(TTM)1.05
OCFY4.36%
SpS6.78
BVpS8.02
TBVpS6.25
PEG (NY)0.63
PEG (5Y)46.37
Graham Number14.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.78% | ||
| ROCE | 1.86% | ||
| ROIC | 1.47% | ||
| ROICexc | 2.93% | ||
| ROICexgc | 4.29% | ||
| OM | 3.05% | ||
| PM (TTM) | 5.66% | ||
| GM | 80.7% | ||
| FCFM | 13.17% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.15% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.6% | ||
| Profit Quality | 232.75% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.01 |
F-Score7
WACC8.96%
ROIC/WACC0.16
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)52.78%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%21.74%
EPS Next Y34.62%
EPS Next 2Y18.45%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue 1Y (TTM)10.4%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%8.38%
Revenue Next Year9.82%
Revenue Next 2Y8.62%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
EBIT growth 1Y183.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.98%
EBIT Next 3Y53.57%
EBIT Next 5Y29.36%
FCF growth 1Y890.12%
FCF growth 3Y0.08%
FCF growth 5Y8.22%
OCF growth 1Y1234.57%
OCF growth 3Y-0.07%
OCF growth 5Y6.26%
RADWARE LTD / RDWR FAQ
What is the fundamental rating for RDWR stock?
ChartMill assigns a fundamental rating of 5 / 10 to RDWR.
What is the valuation status of RADWARE LTD (RDWR) stock?
ChartMill assigns a valuation rating of 5 / 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 5 / 10.
How financially healthy is RADWARE LTD?
The financial health rating of RADWARE LTD (RDWR) is 7 / 10.