RADIAN GROUP INC (RDN)
US7502361014 - Common Stock
Overall RDN gets a fundamental rating of 5 out of 10. We evaluated RDN against 100 industry peers in the Financial Services industry. RDN has only an average score on both its financial health and profitability. RDN has a valuation in line with the averages, but it does not seem to be growing. RDN also has an excellent dividend rating. These ratings could make RDN a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
RDN had positive earnings in the past year.
RDN had a negative operating cash flow in the past year.
In the past 5 years RDN has always been profitable.
Each year in the past 5 years RDN had a positive operating cash flow.
1.2 Ratios
RDN has a better Return On Assets (7.11%) than 84.00% of its industry peers.
RDN has a Return On Equity (12.74%) which is in line with its industry peers.
| 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
The Profit Margin of RDN (45.96%) is better than 92.00% 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 Operating Margin of 69.54%. This is amongst the best in the industry. RDN outperforms 93.00% of its industry peers.
RDN's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for RDN has been reduced compared to 5 years ago.
The debt/assets ratio for RDN has been reduced compared to a year ago.
2.2 Solvency
RDN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RDN (0.42) is better than 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.95%
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 100.00% 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.
The Quick ratio of RDN (19.56) is better than 100.00% 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%.
RDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.66% yearly.
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
The Earnings Per Share is expected to grow by 0.59% on average over the next years.
RDN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.04% yearly.
EPS Next Y0.83%
EPS Next 2Y-1.97%
EPS Next 3Y0.59%
EPS Next 5YN/A
Revenue Next Year3.13%
Revenue Next 2Y3.06%
Revenue Next 3Y3.04%
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.
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
Based on the Price/Earnings ratio of 8.48, the valuation of RDN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RDN indicates a somewhat cheap valuation: RDN is cheaper than 79.00% of the companies listed in the same industry.
RDN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 9.10, 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 68.00% of the companies listed in the same industry.
RDN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 9.1 |
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 87.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.1 |
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)10.18
PEG (5Y)1.11
EPS Next 2Y-1.97%
EPS Next 3Y0.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.85%, 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 3.55. RDN pays more dividend than 82.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, RDN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of RDN grows each year by 149.14%, which is quite nice.
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 25.07% 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.
DP25.07%
EPS Next 2Y-1.97%
EPS Next 3Y0.59%
RADIAN GROUP INC
NYSE:RDN (11/21/2024, 8:04:00 PM)
After market: 34.02 0 (0%)34.02
+0.43 (+1.28%)
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 Cap5.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 8.48 | ||
| Fwd PE | 9.1 | ||
| 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)10.18
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 12.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 69.54% | ||
| PM (TTM) | 45.96% | ||
| 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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 19.56 | ||
| Quick Ratio | 19.56 | ||
| 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)0.75%
EPS 3Y31.26%
EPS 5Y
EPS Q2Q%
EPS Next Y0.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6%
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