RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
25.66 USD
-0.09 (-0.35%)
25.66 USD
0 (0%)
Overall RDWR gets a fundamental rating of 5 out of 10. We evaluated RDWR against 280 industry peers in the Software industry. While RDWR has a great health rating, its profitability is only average at the moment. RDWR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RDWR had positive earnings in the past year.
RDWR had a positive operating cash flow in the past year.
In multiple years RDWR reported negative net income over the last 5 years.
Of the past 5 years RDWR 4 years had a positive operating cash flow.
1.2 Ratios
RDWR has a Return On Assets of 2.15%. This is in the better half of the industry: RDWR outperforms 66.43% of its industry peers.
With a decent Return On Equity value of 4.18%, RDWR is doing good in the industry, outperforming 67.86% of the companies in the same industry.
The Return On Invested Capital of RDWR (0.99%) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.18% | ||
| ROIC | 0.99% |
ROA(3y)-0.94%
ROA(5y)-0.01%
ROE(3y)-1.92%
ROE(5y)-0.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RDWR (4.90%) is better than 67.50% of its industry peers.
In the last couple of years the Profit Margin of RDWR has declined.
RDWR has a Operating Margin of 2.05%. This is in the better half of the industry: RDWR outperforms 62.86% of its industry peers.
With an excellent Gross Margin value of 80.72%, RDWR belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
In the last couple of years the Gross Margin of RDWR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | 4.9% | ||
| GM | 80.72% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.9%
PM growth 5Y-24.52%
GM growth 3Y-0.44%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RDWR is destroying value.
Compared to 1 year ago, RDWR has more shares outstanding
RDWR has less shares outstanding than it did 5 years ago.
There is no outstanding debt for RDWR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.06 indicates that RDWR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.06, RDWR perfoms like the industry average, outperforming 57.86% of the companies in the same industry.
RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.11
WACC8.95%
2.3 Liquidity
RDWR has a Current Ratio of 1.75. This is a normal value and indicates that RDWR is financially healthy and should not expect problems in meeting its short term obligations.
RDWR has a Current ratio (1.75) which is comparable to the rest of the industry.
A Quick Ratio of 1.68 indicates that RDWR should not have too much problems paying its short term obligations.
RDWR has a Quick ratio (1.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
RDWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.50%, which is quite impressive.
Measured over the past 5 years, RDWR shows a small growth in Earnings Per Share. The EPS has been growing by 0.47% on average per year.
RDWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.51%.
The Revenue has been growing slightly by 1.75% on average over the past years.
EPS 1Y (TTM)87.5%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%40%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%10.31%
3.2 Future
Based on estimates for the next years, RDWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.12% on average per year.
Based on estimates for the next years, RDWR will show a quite strong growth in Revenue. The Revenue will grow by 9.42% on average per year.
EPS Next Y31.37%
EPS Next 2Y17.3%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue Next Year9.57%
Revenue Next 2Y8.42%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
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 accelerating.
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
RDWR is valuated rather expensively with a Price/Earnings ratio of 24.44.
Compared to the rest of the industry, the Price/Earnings ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. RDWR is around the same levels.
With a Price/Forward Earnings ratio of 21.69, RDWR is valued on the expensive side.
RDWR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 73.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RDWR to the average of the S&P500 Index (22.77), we can say RDWR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
RDWR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 69.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDWR indicates a rather cheap valuation: RDWR is cheaper than 82.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.84 | ||
| EV/EBITDA | 36.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RDWR's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)0.78
PEG (5Y)51.81
EPS Next 2Y17.3%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
RDWR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.66
-0.09 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.42%
Inst Owner Change2.91%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap1.10B
Analysts80
Price Target30.99 (20.77%)
Short Float %2.46%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.84%
Min EPS beat(2)4.25%
Max EPS beat(2)15.43%
EPS beat(4)4
Avg EPS beat(4)11.35%
Min EPS beat(4)4.25%
Max EPS beat(4)15.43%
EPS beat(8)7
Avg EPS beat(8)10.57%
EPS beat(12)7
Avg EPS beat(12)3.74%
EPS beat(16)10
Avg EPS beat(16)3.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)3
Avg Revenue beat(12)-2.01%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)0%
PT rev (3m)14.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.4%
EPS NY rev (1m)5.03%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 21.69 | ||
| P/S | 3.79 | ||
| P/FCF | 18.84 | ||
| P/OCF | 17.01 | ||
| P/B | 3.24 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 36.62 |
EPS(TTM)1.05
EY4.09%
EPS(NY)1.18
Fwd EY4.61%
FCF(TTM)1.36
FCFY5.31%
OCF(TTM)1.51
OCFY5.88%
SpS6.77
BVpS7.93
TBVpS6.11
PEG (NY)0.78
PEG (5Y)51.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.18% | ||
| ROCE | 1.25% | ||
| ROIC | 0.99% | ||
| ROICexc | 2.34% | ||
| ROICexgc | 3.82% | ||
| OM | 2.05% | ||
| PM (TTM) | 4.9% | ||
| GM | 80.72% | ||
| FCFM | 20.13% |
ROA(3y)-0.94%
ROA(5y)-0.01%
ROE(3y)-1.92%
ROE(5y)-0.23%
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 3YN/A
OM growth 5YN/A
PM growth 3Y-6.9%
PM growth 5Y-24.52%
GM growth 3Y-0.44%
GM growth 5Y-0.35%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.54% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 361.48% | ||
| Profit Quality | 410.59% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 3.06 |
F-Score7
WACC8.95%
ROIC/WACC0.11
Cap/Depr(3y)140.31%
Cap/Depr(5y)111.59%
Cap/Sales(3y)5.74%
Cap/Sales(5y)4.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.5%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%40%
EPS Next Y31.37%
EPS Next 2Y17.3%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%10.31%
Revenue Next Year9.57%
Revenue Next 2Y8.42%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
EBIT growth 1Y130.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.98%
EBIT Next 3Y53.57%
EBIT Next 5Y29.36%
FCF growth 1Y725.97%
FCF growth 3Y0.08%
FCF growth 5Y8.22%
OCF growth 1Y337.74%
OCF growth 3Y-0.07%
OCF growth 5Y6.26%