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RADIAN GROUP INC (RDN) Stock Fundamental Analysis

NYSE:RDN - New York Stock Exchange, Inc. - US7502361014 - Common Stock

33.34  +0.4 (+1.21%)

After market: 33.34 0 (0%)

Fundamental Rating

5

Taking everything into account, RDN scores 5 out of 10 in our fundamental rating. RDN was compared to 101 industry peers in the Financial Services industry. RDN has only an average score on both its financial health and profitability. RDN is valued correctly, but it does not seem to be growing. RDN also has an excellent dividend rating. These ratings would make RDN suitable for dividend investing!


Dividend Valuation Growth Profitability Health

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5

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.
RDN had a positive operating cash flow in each of the past 5 years.
RDN Yearly Net Income VS EBIT VS OCF VS FCFRDN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

1.2 Ratios

RDN has a Return On Assets of 7.11%. This is amongst the best in the industry. RDN outperforms 83.17% of its industry peers.
With a Return On Equity value of 12.74%, RDN perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
Industry RankSector 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
RDN Yearly ROA, ROE, ROICRDN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

With an excellent Profit Margin value of 45.96%, RDN belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
RDN's Profit Margin has been stable in the last couple of years.
RDN has a better Operating Margin (69.54%) than 93.07% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.
Industry RankSector 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
RDN Yearly Profit, Operating, Gross MarginsRDN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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5

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.
Compared to 5 years ago, RDN has less shares outstanding
Compared to 1 year ago, RDN has an improved debt to assets ratio.
RDN Yearly Shares OutstandingRDN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
RDN Yearly Total Debt VS Total AssetsRDN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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 58.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC8.08%
RDN Yearly LT Debt VS Equity VS FCFRDN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 19.56 indicates that RDN has no problem at all paying its short term obligations.
RDN has a Current ratio of 19.56. This is amongst the best in the industry. RDN outperforms 99.01% of its industry peers.
RDN has a Quick Ratio of 19.56. This indicates that RDN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 19.56, RDN belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 19.56
Quick Ratio 19.56
RDN Yearly Current Assets VS Current LiabilitesRDN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

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%.
The Earnings Per Share has been growing slightly by 7.66% on average over the past years.
Looking at the last year, RDN shows a small growth in Revenue. The Revenue has grown by 6.00% in the last year.
Measured over the past years, RDN shows a decrease in Revenue. The Revenue has been decreasing by -0.51% on average per year.
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

RDN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.14% yearly.
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 5Y1.14%
Revenue Next Year3.03%
Revenue Next 2Y3.09%
Revenue Next 3Y3.14%
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.
RDN Yearly Revenue VS EstimatesRDN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
RDN Yearly EPS VS EstimatesRDN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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5

4. Valuation

4.1 Price/Earnings Ratio

RDN is valuated reasonably with a Price/Earnings ratio of 8.31.
Based on the Price/Earnings ratio, RDN is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
RDN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 8.99, the valuation of RDN can be described as reasonable.
64.36% of the companies in the same industry are more expensive than RDN, based on the Price/Forward Earnings ratio.
RDN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 8.31
Fwd PE 8.99
RDN Price Earnings VS Forward Price EarningsRDN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDN indicates a rather cheap valuation: RDN is cheaper than 88.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7
RDN Per share dataRDN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RDN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.88
PEG (5Y)1.09
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.96%, RDN has a reasonable but not impressive dividend return.
RDN's Dividend Yield is rather good when compared to the industry average which is at 3.66. RDN pays more dividend than 82.18% of the companies in the same industry.
RDN's Dividend Yield is a higher than the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 2.96%

5.2 History

On average, the dividend of RDN grows each year by 149.14%, which is quite nice.
RDN has been paying a dividend for at least 10 years, so it has a reliable track record.
RDN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)149.14%
Div Incr Years5
Div Non Decr Years15
RDN Yearly Dividends per shareRDN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

RDN pays out 25.07% of its income as dividend. This is a sustainable payout ratio.
RDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.07%
EPS Next 2Y-2.35%
EPS Next 3Y-0.82%
RDN Yearly Income VS Free CF VS DividendRDN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M
RDN Dividend Payout.RDN Dividend Payout, showing the Payout Ratio.RDN Dividend Payout.PayoutRetained Earnings

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RADIAN GROUP INC

NYSE:RDN (1/21/2025, 8:23:27 PM)

After market: 33.34 0 (0%)

33.34

+0.4 (+1.21%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners98.82%
Inst Owner Change0.13%
Ins Owners0.93%
Ins Owner Change-8.78%
Market Cap4.97B
Analysts71.67
Price Target37.08 (11.22%)
Short Float %6.57%
Short Ratio7.83
Dividend
Industry RankSector Rank
Dividend Yield 2.96%
Yearly Dividend0.94
Dividend Growth(5Y)149.14%
DP25.07%
Div Incr Years5
Div Non Decr Years15
Ex-DateN/A
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)1.19%
PT rev (3m)0.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.02%
EPS NY rev (1m)0%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.65%
Valuation
Industry RankSector Rank
PE 8.31
Fwd PE 8.99
P/S 3.81
P/FCF N/A
P/OCF N/A
P/B 1.06
P/tB 1.06
EV/EBITDA 7
EPS(TTM)4.01
EY12.03%
EPS(NY)3.71
Fwd EY11.13%
FCF(TTM)-0.9
FCFYN/A
OCF(TTM)-0.87
OCFYN/A
SpS8.75
BVpS31.55
TBVpS31.55
PEG (NY)2.88
PEG (5Y)1.09
Profitability
Industry RankSector 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 RankSector 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
WACC8.08%
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 5Y1.14%
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%