RADIAN GROUP INC(NYSE:RDN) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to RDN. RDN was compared to 101 industry peers in the Financial Services industry. RDN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.

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1. Profitability

1.1 Basic Checks

In the past year RDN was profitable.

In the past year RDN has reported a negative cash flow from operations.

Each year in the past 5 years RDN has been profitable.

Of the past 5 years RDN 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.11%, RDN belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.

Looking at the Return On Equity, with a value of 12.74%, RDN is in line with its industry, outperforming 55.45% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	7.11%
ROE	12.74%
ROIC	N/A

ROA(3y)8.48%

ROA(5y)7.61%

ROE(3y)15.25%

ROE(5y)13.81%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

RDN's Profit Margin of 45.96% is amongst the best of the industry. RDN outperforms 92.08% of its industry peers.

In the last couple of years the Profit Margin of RDN has remained more or less at the same level.

With an excellent Operating Margin value of 69.54%, RDN belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.

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 3Y2.05%

OM growth 5Y2.05%

PM growth 3Y1.22%

PM growth 5Y1.25%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RDN does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, RDN has less shares outstanding

The number of shares outstanding for RDN has been reduced compared to 5 years ago.

RDN has a worse 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 has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: RDN outperforms 59.41% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.42
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC13.16%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.

RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.

RDN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.79%.

RDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.31% yearly.

EPS 1Y (TTM)6.43%

EPS 3Y9.31%

EPS 5Y5.29%

EPS Q2Q%13.54%

Revenue 1Y (TTM)3.79%

Revenue growth 3Y-1%

Revenue growth 5Y-3.31%

Sales Q2Q%2.54%

3.2 Future

The Earnings Per Share is expected to decrease by -0.05% on average over the next years.

The Revenue is expected to grow by 3.00% on average over the next years.

EPS Next Y-6.25%

EPS Next 2Y-2.28%

EPS Next 3Y-0.05%

EPS Next 5YN/A

Revenue Next Year2.95%

Revenue Next 2Y3%

Revenue Next 3YN/A

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.83, the valuation of RDN can be described as very cheap.

Compared to the rest of the industry, the Price/Earnings ratio of RDN indicates a rather cheap valuation: RDN is cheaper than 80.20% of the companies listed in the same industry.

When comparing the Price/Earnings ratio of RDN to the average of the S&P500 Index (29.63), we can say RDN is valued rather cheaply.

With a Price/Forward Earnings ratio of 8.36, the valuation of RDN can be described as very reasonable.

Compared to the rest of the industry, the Price/Forward Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 70.30% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RDN is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.83
Fwd PE	8.36

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.48

EPS Next 2Y-2.28%

EPS Next 3Y-0.05%

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5. Dividend

5.1 Amount

RDN has a Yearly Dividend Yield of 3.11%. 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 3.84. RDN pays more dividend than 83.17% of the companies in the same industry.

Compared to an average S&P500 Dividend Yield of 2.29, RDN pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	3.11%

5.2 History

The dividend of RDN is nicely growing with an annual growth rate of 151.22%!

RDN has been paying a dividend for at least 10 years, so it has a reliable track record.

RDN has not decreased their dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)151.22%

Div Incr Years5

Div Non Decr Years15

5.3 Sustainability

RDN pays out 25.07% of its income as dividend. This is a sustainable payout ratio.

DP25.07%

EPS Next 2Y-2.28%

EPS Next 3Y-0.05%

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RADIAN GROUP INC

NYSE:RDN (2/21/2025, 8:04:00 PM)

After market: 32.41 -0.02 (-0.06%)

32.43

-0.38 (-1.16%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryFinancial Services

Earnings (Last)02-05 2025-02-05/amc

Earnings (Next)04-29 2025-04-29/amc

Inst Owners101.65%

Inst Owner Change0.89%

Ins Owners0.92%

Ins Owner Change-9.68%

Market Cap4.79B

Analysts69.09

Price Target37.4 (15.33%)

Short Float %6.54%

Short Ratio8.18

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.11%

Yearly Dividend1.01

Dividend Growth(5Y)151.22%

DP25.07%

Div Incr Years5

Div Non Decr Years15

Ex-Date02-24 2025-02-24 (0.255)

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)-0.2%

PT rev (3m)-0.97%

EPS NQ rev (1m)0.11%

EPS NQ rev (3m)-0.12%

EPS NY rev (1m)4.63%

EPS NY rev (3m)3.84%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-0.04%

Revenue NY rev (1m)-0.19%

Revenue NY rev (3m)-0.13%

Valuation

		Industry Rank	Sector Rank
PE	7.83
Fwd PE	8.36
P/S	3.67
P/FCF	N/A
P/OCF	N/A
P/B	1.02
P/tB	1.02
EV/EBITDA	N/A

EPS(TTM)4.14

EY12.77%

EPS(NY)3.88

Fwd EY11.97%

FCF(TTM)-0.91

FCFYN/A

OCF(TTM)-0.88

OCFYN/A

SpS8.83

BVpS31.84

TBVpS31.84

PEG (NY)N/A

PEG (5Y)1.48

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)8.48%

ROA(5y)7.61%

ROE(3y)15.25%

ROE(5y)13.81%

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 3Y2.05%

OM growth 5Y2.05%

PM growth 3Y1.22%

PM growth 5Y1.25%

GM growth 3YN/A

GM growth 5YN/A

F-Score2

Asset Turnover0.15

Health

		Industry Rank	Sector Rank
Debt/Equity	0.42
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	0.36%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score2

WACC13.16%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)6.43%

EPS 3Y9.31%

EPS 5Y5.29%

EPS Q2Q%13.54%

EPS Next Y-6.25%

EPS Next 2Y-2.28%

EPS Next 3Y-0.05%

EPS Next 5YN/A

Revenue 1Y (TTM)3.79%

Revenue growth 3Y-1%

Revenue growth 5Y-3.31%

Sales Q2Q%2.54%

Revenue Next Year2.95%

Revenue Next 2Y3%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y1.14%

EBIT growth 3Y1.03%

EBIT growth 5Y-1.33%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-138.18%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-134.86%

OCF growth 3YN/A

OCF growth 5YN/A

RADIAN GROUP INC (RDN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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