RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
25.18 USD
-0.08 (-0.32%)
25.18 USD
0 (0%)
Overall RDWR gets a fundamental rating of 5 out of 10. We evaluated RDWR against 285 industry peers in the Software industry. While RDWR has a great health rating, its profitability is only average at the moment. RDWR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RDWR had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.15%, RDWR is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
RDWR's Return On Equity of 4.18% is fine compared to the rest of the industry. RDWR outperforms 67.61% of its industry peers.
RDWR has a Return On Invested Capital of 0.99%. This is in the better half of the industry: RDWR outperforms 62.68% 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
RDWR has a better Profit Margin (4.90%) than 67.25% of its industry peers.
RDWR's Profit Margin has declined in the last couple of years.
RDWR has a better Operating Margin (2.05%) than 62.68% of its industry peers.
RDWR's Gross Margin of 80.72% is amongst the best of the industry. RDWR outperforms 83.45% of its industry peers.
RDWR's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDWR is destroying value.
Compared to 1 year ago, RDWR has more shares outstanding
The number of shares outstanding for RDWR has been reduced compared to 5 years ago.
RDWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RDWR has an Altman-Z score of 3.02. This indicates that RDWR is financially healthy and has little risk of bankruptcy at the moment.
RDWR has a Altman-Z score (3.02) which 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 | 3.02 |
ROIC/WACC0.11
WACC9.34%
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.
With a Current ratio value of 1.75, RDWR perfoms like the industry average, outperforming 55.28% of the companies in the same 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
The Earnings Per Share has grown by an impressive 87.50% 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.
RDWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.51%.
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)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.
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 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
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
Based on the Price/Earnings ratio of 23.98, the valuation of RDWR can be described as rather expensive.
71.48% of the companies in the same industry are more expensive than RDWR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RDWR to the average of the S&P500 Index (27.42), we can say RDWR is valued inline with the index average.
RDWR is valuated rather expensively with a Price/Forward Earnings ratio of 21.28.
72.54% of the companies in the same industry are more expensive than RDWR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, RDWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDWR is valued a bit cheaper than 69.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RDWR is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.49 | ||
| EV/EBITDA | 35.47 |
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)0.76
PEG (5Y)50.84
EPS Next 2Y17.3%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.18
-0.08 (-0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.2%
Inst Owner Change-0.33%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap1.07B
Analysts80
Price Target30.99 (23.07%)
Short Float %2.2%
Short Ratio4.06
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)6.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.4%
EPS NY rev (1m)0%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 21.28 | ||
| P/S | 3.72 | ||
| P/FCF | 18.49 | ||
| P/OCF | 16.69 | ||
| P/B | 3.17 | ||
| P/tB | 4.12 | ||
| EV/EBITDA | 35.47 |
EPS(TTM)1.05
EY4.17%
EPS(NY)1.18
Fwd EY4.7%
FCF(TTM)1.36
FCFY5.41%
OCF(TTM)1.51
OCFY5.99%
SpS6.77
BVpS7.93
TBVpS6.11
PEG (NY)0.76
PEG (5Y)50.84
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 | 3.02 |
F-Score7
WACC9.34%
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%