RADIAN GROUP INC (RDN)
US7502361014 - Common Stock
Taking everything into account, RDN scores 6 out of 10 in our fundamental rating. RDN was compared to 103 industry peers in the Financial Services industry. RDN gets an excellent profitability rating and is at the same time showing great financial health properties. 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 positive operating cash flow in the past year.
Each year in the past 5 years RDN has been profitable.
RDN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RDN has a Return On Assets of 7.42%. This is amongst the best in the industry. RDN outperforms 88.35% of its industry peers.
RDN has a better Return On Equity (13.46%) than 63.11% of its industry peers.
With an excellent Return On Invested Capital value of 8.67%, RDN belongs to the best of the industry, outperforming 81.55% of the companies in the same industry.
RDN had an Average Return On Invested Capital over the past 3 years of 9.81%. This is above the industry average of 7.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.42% | ||
| ROE | 13.46% | ||
| ROIC | 8.67% |
ROA(3y)8.71%
ROA(5y)8.19%
ROE(3y)15.59%
ROE(5y)14.51%
ROIC(3y)9.81%
ROIC(5y)9.18%
1.3 Margins
With an excellent Profit Margin value of 47.05%, RDN belongs to the best of the industry, outperforming 91.26% of the companies in the same industry.
RDN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 69.84%, RDN belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
RDN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 69.84% | ||
| PM (TTM) | 47.05% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDN is still creating some value.
RDN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RDN has less shares outstanding
RDN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that RDN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, RDN is in the better half of the industry, outperforming 77.67% of the companies in the same industry.
The Debt to FCF ratio of RDN is 11.41, which is on the high side as it means it would take RDN, 11.41 years of fcf income to pay off all of its debts.
RDN's Debt to FCF ratio of 11.41 is in line compared to the rest of the industry. RDN outperforms 51.46% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that RDN is not too dependend on debt financing.
The Debt to Equity ratio of RDN (0.45) is better than 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.16
WACC7.46%
2.3 Liquidity
A Current Ratio of 3.44 indicates that RDN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.44, RDN belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
A Quick Ratio of 3.44 indicates that RDN has no problem at all paying its short term obligations.
RDN has a better Quick ratio (3.44) than 87.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
The earnings per share for RDN have decreased by -5.41% in the last year.
RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.66% yearly.
The Revenue has been growing slightly by 5.84% in the past year.
RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)-5.41%
EPS 3Y31.26%
EPS 5Y7.66%
EPS Q2Q%8.79%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y-4.82%
Revenue growth 5Y-0.51%
Sales Q2Q%11.39%
3.2 Future
RDN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.59% yearly.
The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y-0.83%
EPS Next 2Y-2.1%
EPS Next 3Y0.59%
EPS Next 5YN/A
Revenue Next Year10.37%
Revenue Next 2Y3.45%
Revenue Next 3Y1.51%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.70, which indicates a very decent valuation of RDN.
Based on the Price/Earnings ratio, RDN is valued cheaply inside the industry as 82.52% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.62. RDN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.38 indicates a reasonable valuation of RDN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 66.02% of the companies listed in the same industry.
RDN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDN is valued cheaper than 85.44% of the companies in the same industry.
RDN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.06 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
RDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-2.1%
EPS Next 3Y0.59%
5. Dividend
5.1 Amount
RDN has a Yearly Dividend Yield of 2.73%.
RDN's Dividend Yield is a higher than the industry average which is at 3.49.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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 Years4
Div Non Decr Years14
5.3 Sustainability
RDN pays out 24.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of RDN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.65%
EPS Next 2Y-2.1%
EPS Next 3Y0.59%
RADIAN GROUP INC
NYSE:RDN (9/6/2024, 8:04:00 PM)
After market: 34.96 0 (0%)34.96
-0.37 (-1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.42% | ||
| ROE | 13.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 69.84% | ||
| PM (TTM) | 47.05% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.41%
EPS 3Y31.26%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.84%
Revenue growth 3Y-4.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y