RADWARE LTD (RDWR) Stock Fundamental Analysis
USA - NASDAQ:RDWR - IL0010834765 - Common Stock
23.82 USD
-1.04 (-4.18%)
RDWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. RDWR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
The reported net income has been mixed in the past 5 years: RDWR reported negative net income in multiple 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 2.52%, RDWR is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
RDWR's Return On Equity of 4.78% is fine compared to the rest of the industry. RDWR outperforms 67.96% of its industry peers.
With a decent Return On Invested Capital value of 1.47%, RDWR is doing good in the industry, outperforming 65.14% 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
With a decent Profit Margin value of 5.66%, RDWR is doing good in the industry, outperforming 67.25% 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 65.85% of its industry peers.
The Gross Margin of RDWR (80.70%) is better than 83.45% of its industry peers.
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 | 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
RDWR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RDWR has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.04 indicates that RDWR is not in any danger for bankruptcy at the moment.
The Altman-Z score of RDWR (3.04) 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 | 3.04 |
ROIC/WACC0.16
WACC8.93%
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 (1.68) which is comparable to the rest of the industry.
RDWR has a Quick Ratio of 1.60. 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 Quick ratio (1.60) which is comparable to the rest of the 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.
RDWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.40%.
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
RDWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.12% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.65, which indicates a rather expensive current valuation of RDWR.
Based on the Price/Earnings ratio, RDWR is valued a bit cheaper than 73.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of RDWR to the average of the S&P500 Index (26.51), we can say RDWR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.74, the valuation of RDWR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, RDWR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 73.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RDWR is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.21 | ||
| EV/EBITDA | 32.16 |
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.
A more expensive valuation may be justified as RDWR's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)0.63
PEG (5Y)45.91
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 |
NASDAQ:RDWR (11/4/2025, 1:31:38 PM)
23.82
-1.04 (-4.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.2%
Inst Owner Change-0.74%
Ins Owners11.71%
Ins Owner ChangeN/A
Market Cap1.02B
Revenue(TTM)294.64M
Net Income(TTM)16.67M
Analysts80
Price Target30.99 (30.1%)
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)6.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.74 | ||
| P/S | 3.45 | ||
| P/FCF | 26.21 | ||
| P/OCF | 22.34 | ||
| P/B | 2.92 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 32.16 |
EPS(TTM)1.1
EY4.62%
EPS(NY)1.21
Fwd EY5.07%
FCF(TTM)0.91
FCFY3.82%
OCF(TTM)1.07
OCFY4.48%
SpS6.9
BVpS8.16
TBVpS6.36
PEG (NY)0.63
PEG (5Y)45.91
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 | 3.04 |
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.