RADWARE LTD (RDWR) Stock Fundamental Analysis
NASDAQ:RDWR - Nasdaq - IL0010834765 - Common Stock - Currency: USD
Taking everything into account, RDWR scores 5 out of 10 in our fundamental rating. RDWR was compared to 285 industry peers in the Software industry. RDWR has only an average score on both its financial health and profitability. 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
Looking at the Return On Assets, with a value of 0.98%, RDWR is in the better half of the industry, outperforming 65.26% of the companies in the same industry.
RDWR has a better Return On Equity (1.91%) than 65.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.91% | ||
| ROIC | N/A |
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
RDWR's Profit Margin of 2.20% is fine compared to the rest of the industry. RDWR outperforms 65.96% of its industry peers.
RDWR's Profit Margin has declined in the last couple of years.
RDWR's Gross Margin of 80.63% is amongst the best of the industry. RDWR outperforms 83.16% of its industry peers.
RDWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.2% | ||
| GM | 80.63% |
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
RDWR does not have a ROIC to compare to the WACC, probably because it is not profitable.
RDWR has more shares outstanding than it did 1 year ago.
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
RDWR has an Altman-Z score of 2.77. This is not the best score and indicates that RDWR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RDWR (2.77) is comparable to the rest of the industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.77 |
ROIC/WACCN/A
WACC9.28%
2.3 Liquidity
RDWR has a Current Ratio of 1.90. This is a normal value and indicates that RDWR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RDWR (1.90) is comparable to the rest of the industry.
A Quick Ratio of 1.82 indicates that RDWR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, RDWR perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
RDWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.45%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.47% on average over the past years.
The Revenue has been growing slightly by 5.20% in the past year.
The Revenue has been growing slightly by 1.75% on average over the past years.
EPS 1Y (TTM)95.45%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%107.69%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%12.3%
3.2 Future
The Earnings Per Share is expected to grow by 13.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.42% on average over the next years. This is quite good.
EPS Next Y18.33%
EPS Next 2Y13.3%
EPS Next 3Y13.11%
EPS Next 5YN/A
Revenue Next Year7.99%
Revenue Next 2Y7.77%
Revenue Next 3Y8.15%
Revenue Next 5Y9.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 24.42, which indicates a rather expensive current valuation of RDWR.
Based on the Price/Earnings ratio, RDWR is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
RDWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.63.
The Price/Forward Earnings ratio is 20.64, which indicates a rather expensive current valuation of RDWR.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than 75.44% of the companies in the same industry.
RDWR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDWR is valued a bit cheaper than 66.67% of the companies in the same industry.
87.72% of the companies in the same industry are more expensive than RDWR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 50.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RDWR's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)51.77
EPS Next 2Y13.3%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RDWR (4/22/2025, 2:31:47 PM)
21
+0.17 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.9%
Inst Owner Change0.32%
Ins Owners10.93%
Ins Owner ChangeN/A
Market Cap896.49M
Analysts78
Price Target26.69 (27.1%)
Short Float %1.17%
Short Ratio3.32
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)12.87%
Min EPS beat(2)11.57%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)16.48%
Min EPS beat(4)11.57%
Max EPS beat(4)21.79%
EPS beat(8)5
Avg EPS beat(8)4.35%
EPS beat(12)6
Avg EPS beat(12)1.82%
EPS beat(16)10
Avg EPS beat(16)4.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.29%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.6%
Revenue beat(8)2
Avg Revenue beat(8)-1.88%
Revenue beat(12)2
Avg Revenue beat(12)-2.3%
Revenue beat(16)5
Avg Revenue beat(16)-1.36%
PT rev (1m)-2.48%
PT rev (3m)4.95%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)16.22%
EPS NY rev (1m)3.49%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.64 | ||
| P/S | 3.26 | ||
| P/FCF | 13.52 | ||
| P/OCF | 12.52 | ||
| P/B | 2.83 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 50.45 |
EPS(TTM)0.86
EY4.1%
EPS(NY)1.02
Fwd EY4.85%
FCF(TTM)1.55
FCFY7.4%
OCF(TTM)1.68
OCFY7.99%
SpS6.44
BVpS7.41
TBVpS5.54
PEG (NY)1.33
PEG (5Y)51.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.91% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 2.2% | ||
| GM | 80.63% | ||
| FCFM | 24.13% |
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 | 44.6% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 827.85% | ||
| Profit Quality | 1098.54% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 2.77 |
F-Score7
WACC9.28%
ROIC/WACCN/A
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)95.45%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%107.69%
EPS Next Y18.33%
EPS Next 2Y13.3%
EPS Next 3Y13.11%
EPS Next 5YN/A
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%12.3%
Revenue Next Year7.99%
Revenue Next 2Y7.77%
Revenue Next 3Y8.15%
Revenue Next 5Y9.42%
EBIT growth 1Y88.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year155.65%
EBIT Next 3Y48.91%
EBIT Next 5Y29.36%
FCF growth 1Y842.86%
FCF growth 3Y0.08%
FCF growth 5Y8.22%
OCF growth 1Y2145.97%
OCF growth 3Y-0.07%
OCF growth 5Y6.26%