RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
25.725 USD
+0.12 (+0.45%)
Overall RDWR gets a fundamental rating of 5 out of 10. We evaluated RDWR against 280 industry peers in the Software industry. RDWR has an excellent financial health rating, but there are some minor concerns on its profitability. RDWR is not valued too expensively and it also shows a decent 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
The Return On Assets of RDWR (2.15%) is better than 66.43% of its industry peers.
RDWR has a Return On Equity of 4.18%. This is in the better half of the industry: RDWR outperforms 67.86% of its industry peers.
RDWR's Return On Invested Capital of 0.99% is fine compared to the rest of the industry. RDWR outperforms 62.50% 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
The Profit Margin of RDWR (4.90%) is better than 67.50% of its industry peers.
RDWR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.05%, RDWR is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
RDWR has a Gross Margin of 80.72%. This is amongst the best in the industry. RDWR outperforms 82.50% of its industry peers.
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.
The number of shares outstanding for RDWR has been increased compared to 1 year ago.
Compared to 5 years ago, RDWR has less shares outstanding
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 3.06 indicates that RDWR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.06, RDWR perfoms like the industry average, outperforming 57.14% of the companies in the same 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 | 0 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.11
WACC8.95%
2.3 Liquidity
RDWR has a Current Ratio of 1.75. 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 Current ratio of 1.75 is in line compared to the rest of the industry. RDWR outperforms 55.36% of its industry peers.
A Quick Ratio of 1.68 indicates that RDWR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, RDWR is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
RDWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.50%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.47% on average over the past years.
Looking at the last year, RDWR shows a quite strong growth in Revenue. The Revenue has grown by 11.51% 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)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
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 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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.50 indicates a rather expensive valuation of RDWR.
RDWR's Price/Earnings ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 71.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RDWR is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.74, the valuation of RDWR can be described as rather expensive.
73.57% of the companies in the same industry are more expensive than RDWR, based on the Price/Forward Earnings ratio.
RDWR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
70.71% 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 cheaply inside the industry as 82.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 36.5 |
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.
A more expensive valuation may be justified as RDWR's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)0.78
PEG (5Y)51.94
EPS Next 2Y17.3%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RDWR (9/17/2025, 12:03:30 PM)
25.725
+0.12 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.42%
Inst Owner Change2.91%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap1.10B
Analysts80
Price Target30.99 (20.47%)
Short Float %2.65%
Short Ratio4.73
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)5.03%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.74 | ||
| P/S | 3.8 | ||
| P/FCF | 18.89 | ||
| P/OCF | 17.06 | ||
| P/B | 3.24 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 36.5 |
EPS(TTM)1.05
EY4.08%
EPS(NY)1.18
Fwd EY4.6%
FCF(TTM)1.36
FCFY5.29%
OCF(TTM)1.51
OCFY5.86%
SpS6.77
BVpS7.93
TBVpS6.11
PEG (NY)0.78
PEG (5Y)51.94
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 | 3.06 |
F-Score7
WACC8.95%
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%