RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
22.81 USD
-0.03 (-0.13%)
22.81 USD
0 (0%)
Overall RDWR gets a fundamental rating of 5 out of 10. We evaluated RDWR against 281 industry peers in the Software industry. RDWR has only an average score on both its financial health and profitability. RDWR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RDWR was profitable.
In the past year RDWR had a positive cash flow from operations.
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
RDWR's Return On Assets of 2.52% is fine compared to the rest of the industry. RDWR outperforms 65.48% of its industry peers.
RDWR has a Return On Equity of 4.78%. This is in the better half of the industry: RDWR outperforms 68.33% of its industry peers.
RDWR has a better Return On Invested Capital (1.47%) than 64.41% of its industry peers.
| 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.
With a decent Operating Margin value of 3.05%, RDWR is doing good in the industry, outperforming 65.48% of the companies in the same industry.
The Gross Margin of RDWR (80.70%) is better than 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.
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 2.87. 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.
RDWR has a Altman-Z score of 2.87. This is comparable to the rest of the industry: RDWR outperforms 57.65% of its industry peers.
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 | 2.87 |
ROIC/WACC0.16
WACC8.94%
2.3 Liquidity
RDWR has a Current Ratio of 1.68. 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 of 1.68. This is comparable 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.
RDWR has a Quick ratio of 1.60. This is comparable to the rest of the industry: RDWR outperforms 51.25% of its industry peers.
| 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.
RDWR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.47% yearly.
The Revenue has grown by 10.40% in the past year. This is quite good.
The Revenue has been growing slightly by 1.75% on average over the past years.
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.
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 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
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
A Price/Earnings ratio of 20.74 indicates a rather expensive valuation of RDWR.
RDWR's Price/Earnings ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 74.02% of the companies in the same industry.
RDWR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 18.90 indicates a rather expensive valuation of RDWR.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than 74.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, RDWR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
RDWR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDWR is cheaper than 73.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RDWR is valued a bit cheaper than the industry average as 74.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.1 | ||
| EV/EBITDA | 27.99 |
4.3 Compensation for Growth
RDWR's 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)0.6
PEG (5Y)43.96
EPS Next 2Y18.45%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.81
-0.03 (-0.13%)
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 Cap973.76M
Revenue(TTM)294.64M
Net Income(TTM)16.67M
Analysts80
Price Target30.99 (35.86%)
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 | 20.74 | ||
| Fwd PE | 18.9 | ||
| P/S | 3.3 | ||
| P/FCF | 25.1 | ||
| P/OCF | 21.4 | ||
| P/B | 2.79 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 27.99 |
EPS(TTM)1.1
EY4.82%
EPS(NY)1.21
Fwd EY5.29%
FCF(TTM)0.91
FCFY3.98%
OCF(TTM)1.07
OCFY4.67%
SpS6.9
BVpS8.16
TBVpS6.36
PEG (NY)0.6
PEG (5Y)43.96
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
WACC8.94%
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.