RADIAN GROUP INC (RDN)
US7502361014 - Common Stock
Taking everything into account, RDN scores 5 out of 10 in our fundamental rating. RDN was compared to 99 industry peers in the Financial Services industry. Both the profitability and the financial health of RDN get a neutral evaluation. Nothing too spectacular is happening here. RDN has a valuation in line with the averages, but on the other hand it scores bad on growth. RDN also has an excellent dividend rating. These ratings could make RDN a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year RDN was profitable.
RDN had a negative operating cash flow in the past year.
Each year in the past 5 years RDN has been profitable.
In the past 5 years RDN always reported a positive cash flow from operatings.
1.2 Ratios
RDN has a better Return On Assets (7.11%) than 82.83% of its industry peers.
Looking at the Return On Equity, with a value of 12.74%, RDN is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 12.74% | ||
| ROIC | N/A |
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RDN has a better Profit Margin (45.96%) than 91.92% of its industry peers.
In the last couple of years the Profit Margin of RDN has remained more or less at the same level.
RDN has a better Operating Margin (69.54%) than 92.93% of its industry peers.
In the last couple of years the Operating Margin of RDN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 69.54% | ||
| PM (TTM) | 45.96% | ||
| GM | N/A |
OM growth 3Y22.26%
OM growth 5Y3.58%
PM growth 3Y21.12%
PM growth 5Y0.42%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RDN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RDN has been reduced compared to 1 year ago.
RDN has less shares outstanding than it did 5 years ago.
RDN has a better debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 0.42 indicates that RDN is not too dependend on debt financing.
RDN's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. RDN outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.98%
2.3 Liquidity
RDN has a Current Ratio of 19.56. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
RDN's Current ratio of 19.56 is amongst the best of the industry. RDN outperforms 98.99% of its industry peers.
A Quick Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
The Quick ratio of RDN (19.56) is better than 98.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 19.56 | ||
| Quick Ratio | 19.56 |
3. Growth
3.1 Past
RDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.75%.
Measured over the past 5 years, RDN shows a small growth in Earnings Per Share. The EPS has been growing by 7.66% on average per year.
RDN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
The Revenue has been decreasing by -0.51% on average over the past years.
EPS 1Y (TTM)0.75%
EPS 3Y31.26%
EPS 5Y7.66%
EPS Q2Q%-0.96%
Revenue 1Y (TTM)6%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Sales Q2Q%-0.47%
3.2 Future
Based on estimates for the next years, RDN will show a decrease in Earnings Per Share. The EPS will decrease by -0.82% on average per year.
Based on estimates for the next years, RDN will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
EPS Next Y2.88%
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue Next Year3.03%
Revenue Next 2Y3.09%
Revenue Next 3Y3.14%
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 decreasing.
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 7.99, which indicates a rather cheap valuation of RDN.
Based on the Price/Earnings ratio, RDN is valued cheaply inside the industry as 80.81% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. RDN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.64, the valuation of RDN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RDN is valued a bit cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, RDN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaper than 86.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.77
PEG (5Y)1.04
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
RDN's Dividend Yield is rather good when compared to the industry average which is at 3.79. RDN pays more dividend than 81.82% of the companies in the same industry.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of RDN is nicely growing with an annual growth rate of 149.14%!
RDN has paid a dividend for at least 10 years, which is a reliable track record.
RDN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)149.14%
Div Incr Years5
Div Non Decr Years15
5.3 Sustainability
25.07% of the earnings are spent on dividend by RDN. This is a low number and sustainable payout ratio.
DP25.07%
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%
RADIAN GROUP INC
NYSE:RDN (12/20/2024, 8:04:00 PM)
After market: 32.05 0 (0%)32.05
+0.32 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.82%
Inst Owner Change-2.66%
Ins Owners0.93%
Ins Owner Change-8.87%
Market Cap4.77B
Analysts71.67
Price Target36.65 (14.35%)
Short Float %4.53%
Short Ratio6.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Dividend Growth(5Y)149.14%
DP25.07%
Div Incr Years5
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.64%
Min EPS beat(2)9.12%
Max EPS beat(2)12.15%
EPS beat(4)4
Avg EPS beat(4)13.12%
Min EPS beat(4)9.12%
Max EPS beat(4)21.36%
EPS beat(8)8
Avg EPS beat(8)20.41%
EPS beat(12)12
Avg EPS beat(12)34.51%
EPS beat(16)15
Avg EPS beat(16)26.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-9.52%
Max Revenue beat(4)-1.07%
Revenue beat(8)2
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)7.25%
Revenue beat(16)10
Avg Revenue beat(16)12.01%
PT rev (1m)-1.95%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.02%
EPS NY rev (1m)2.03%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-6.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.64 | ||
| P/S | 3.66 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 6.81 |
EPS(TTM)4.01
EY12.51%
EPS(NY)3.71
Fwd EY11.57%
FCF(TTM)-0.9
FCFYN/A
OCF(TTM)-0.87
OCFYN/A
SpS8.75
BVpS31.55
TBVpS31.55
PEG (NY)2.77
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 12.74% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 69.54% | ||
| PM (TTM) | 45.96% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
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)12.54%
ROCE(5y)11.72%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y22.26%
OM growth 5Y3.58%
PM growth 3Y21.12%
PM growth 5Y0.42%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 5.96% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 19.56 | ||
| Quick Ratio | 19.56 | ||
| Altman-Z | N/A |
F-Score3
WACC7.98%
ROIC/WACCN/A
Cap/Depr(3y)20.12%
Cap/Depr(5y)24.41%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.35%
Profit Quality(3y)75.21%
Profit Quality(5y)97.55%
High Growth Momentum
Growth
EPS 1Y (TTM)0.75%
EPS 3Y31.26%
EPS 5Y7.66%
EPS Q2Q%-0.96%
EPS Next Y2.88%
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue 1Y (TTM)6%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Sales Q2Q%-0.47%
Revenue Next Year3.03%
Revenue Next 2Y3.09%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y1.14%
EBIT growth 3Y16.37%
EBIT growth 5Y3.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-131.89%
FCF growth 3Y-7.17%
FCF growth 5Y-4.67%
OCF growth 1Y-129.64%
OCF growth 3Y-7.01%
OCF growth 5Y-4.82%