RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
23.3 USD
+0.49 (+2.15%)
23.3 USD
0 (0%)
RDWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. Both the profitability and the financial health of RDWR get a neutral evaluation. Nothing too spectacular is happening here. RDWR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RDWR was profitable.
RDWR had a positive operating cash flow in the past year.
In multiple years RDWR reported negative net income over the last 5 years.
RDWR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RDWR (2.52%) is better than 65.48% of its industry peers.
RDWR has a better Return On Equity (4.78%) than 68.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.47%, RDWR is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.78% | ||
| ROIC | 1.47% |
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
Looking at the Profit Margin, with a value of 5.66%, RDWR is in the better half of the industry, outperforming 67.26% of the companies in the same industry.
RDWR's Profit Margin has declined in the last couple of years.
RDWR has a Operating Margin of 3.05%. This is in the better half of the industry: RDWR outperforms 65.48% of its industry peers.
RDWR has a Gross Margin of 80.70%. This is amongst the best in the industry. RDWR outperforms 82.92% of its industry peers.
RDWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.05% | ||
| PM (TTM) | 5.66% | ||
| GM | 80.7% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDWR is destroying value.
The number of shares outstanding for RDWR has been increased compared to 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
An Altman-Z score of 2.87 indicates that RDWR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RDWR (2.87) is comparable to the rest of the 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 | 2.87 |
ROIC/WACC0.16
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.68 indicates that RDWR should not have too much problems paying its short term obligations.
RDWR's Current ratio of 1.68 is in line compared to the rest of the industry. RDWR outperforms 53.02% of its industry peers.
A Quick Ratio of 1.60 indicates that RDWR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.60, RDWR is in line with its industry, outperforming 51.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.78% over the past year.
The Earnings Per Share has been growing slightly by 0.47% on average over the past years.
Looking at the last year, RDWR shows a quite strong growth in Revenue. The Revenue has grown by 10.40% in the last year.
Measured over the past years, RDWR shows a small growth in Revenue. The Revenue has been growing by 1.75% on average per year.
EPS 1Y (TTM)52.78%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%21.74%
Revenue 1Y (TTM)10.4%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%8.38%
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.
RDWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y34.62%
EPS Next 2Y18.45%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue Next Year9.82%
Revenue Next 2Y8.62%
Revenue Next 3Y8.75%
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
With a Price/Earnings ratio of 21.18, RDWR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 73.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, RDWR is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of RDWR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 74.02% of the companies listed in the same industry.
RDWR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDWR is valued a bit cheaper than 72.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 74.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.64 | ||
| EV/EBITDA | 27.93 |
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.
RDWR's earnings are expected to grow with 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)44.9
EPS Next 2Y18.45%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
RDWR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.3
+0.49 (+2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.2%
Inst Owner Change-2.32%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap994.68M
Revenue(TTM)294.64M
Net Income(TTM)16.67M
Analysts80
Price Target30.99 (33%)
Short Float %2.07%
Short Ratio5.25
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)2.77%
Min EPS beat(2)1.3%
Max EPS beat(2)4.25%
EPS beat(4)4
Avg EPS beat(4)8.13%
Min EPS beat(4)1.3%
Max EPS beat(4)15.43%
EPS beat(8)8
Avg EPS beat(8)11.64%
EPS beat(12)8
Avg EPS beat(12)4.51%
EPS beat(16)10
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-1.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)0.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)5.11%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)2.47%
EPS NY rev (3m)7.62%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.31 | ||
| P/S | 3.38 | ||
| P/FCF | 25.64 | ||
| P/OCF | 21.86 | ||
| P/B | 2.85 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 27.93 |
EPS(TTM)1.1
EY4.72%
EPS(NY)1.21
Fwd EY5.18%
FCF(TTM)0.91
FCFY3.9%
OCF(TTM)1.07
OCFY4.58%
SpS6.9
BVpS8.16
TBVpS6.36
PEG (NY)0.61
PEG (5Y)44.9
Graham Number14.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.78% | ||
| ROCE | 1.86% | ||
| ROIC | 1.47% | ||
| ROICexc | 2.93% | ||
| ROICexgc | 4.29% | ||
| OM | 3.05% | ||
| PM (TTM) | 5.66% | ||
| GM | 80.7% | ||
| FCFM | 13.17% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.15% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.6% | ||
| Profit Quality | 232.75% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.87 |
F-Score7
WACC8.93%
ROIC/WACC0.16
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)52.78%
EPS 3Y2.02%
EPS 5Y0.47%
EPS Q2Q%21.74%
EPS Next Y34.62%
EPS Next 2Y18.45%
EPS Next 3Y16.12%
EPS Next 5YN/A
Revenue 1Y (TTM)10.4%
Revenue growth 3Y-1.37%
Revenue growth 5Y1.75%
Sales Q2Q%8.38%
Revenue Next Year9.82%
Revenue Next 2Y8.62%
Revenue Next 3Y8.75%
Revenue Next 5Y9.42%
EBIT growth 1Y183.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.98%
EBIT Next 3Y53.57%
EBIT Next 5Y29.36%
FCF growth 1Y890.12%
FCF growth 3Y0.08%
FCF growth 5Y8.22%
OCF growth 1Y1234.57%
OCF growth 3Y-0.07%
OCF growth 5Y6.26%
RADWARE LTD / RDWR FAQ
What is the fundamental rating for RDWR stock?
ChartMill assigns a fundamental rating of 5 / 10 to RDWR.
What is the valuation status for RDWR stock?
ChartMill assigns a valuation rating of 5 / 10 to RADWARE LTD (RDWR). This can be considered as Fairly Valued.
Can you provide the profitability details for RADWARE LTD?
RADWARE LTD (RDWR) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for RDWR stock?
The Earnings per Share (EPS) of RADWARE LTD (RDWR) is expected to grow by 34.62% in the next year.