RADWARE LTD (RDWR)
IL0010834765 - Common Stock
RDWR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. While RDWR has a great health rating, there are worries on its profitability. 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.
Of the past 5 years RDWR 4 years had a positive operating cash flow.
1.2 Ratios
RDWR's Return On Assets of -0.37% is fine compared to the rest of the industry. RDWR outperforms 62.01% of its industry peers.
RDWR has a better Return On Equity (-0.74%) than 63.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.74% | ||
| ROIC | N/A |
ROA(3y)-0.86%
ROA(5y)0.55%
ROE(3y)-1.85%
ROE(5y)0.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Gross Margin value of 80.48%, RDWR belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
RDWR's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for RDWR so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.48% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.72%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
RDWR does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RDWR has been reduced compared to 1 year ago.
Compared to 5 years ago, RDWR has less shares outstanding
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 2.97. 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.
With a Altman-Z score value of 2.97, RDWR perfoms like the industry average, outperforming 50.54% of the companies in the same 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 | 2.97 |
ROIC/WACCN/A
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.19 indicates that RDWR has no problem at all paying its short term obligations.
RDWR has a Current ratio of 2.19. This is in the better half of the industry: RDWR outperforms 63.80% of its industry peers.
RDWR has a Quick Ratio of 2.11. This indicates that RDWR is financially healthy and has no problem in meeting its short term obligations.
RDWR's Quick ratio of 2.11 is fine compared to the rest of the industry. RDWR outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
RDWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
RDWR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.36% yearly.
Looking at the last year, RDWR shows a decrease in Revenue. The Revenue has decreased by -1.28% in the last year.
Measured over the past years, RDWR shows a small growth in Revenue. The Revenue has been growing by 2.20% on average per year.
EPS 1Y (TTM)50%
EPS 3Y-12.64%
EPS 5Y-4.36%
EPS Q2Q%228.57%
Revenue 1Y (TTM)-1.28%
Revenue growth 3Y1.48%
Revenue growth 5Y2.2%
Sales Q2Q%12.78%
3.2 Future
RDWR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.27% yearly.
Based on estimates for the next years, RDWR will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
EPS Next Y93.22%
EPS Next 2Y47.22%
EPS Next 3Y35.27%
EPS Next 5YN/A
Revenue Next Year4.88%
Revenue Next 2Y5.76%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
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.
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
A Price/Earnings ratio of 33.51 indicates a quite expensive valuation of RDWR.
Compared to the rest of the industry, the Price/Earnings ratio of RDWR indicates a somewhat cheap valuation: RDWR is cheaper than 73.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.61. RDWR is around the same levels.
RDWR is valuated quite expensively with a Price/Forward Earnings ratio of 25.30.
Based on the Price/Forward Earnings ratio, RDWR is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RDWR to the average of the S&P500 Index (24.24), we can say RDWR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.51 | ||
| Fwd PE | 25.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDWR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RDWR is valued cheaper than 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 369.29 |
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 35.27% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y47.22%
EPS Next 3Y35.27%
5. Dividend
5.1 Amount
No dividends for RDWR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RADWARE LTD
NASDAQ:RDWR (11/26/2024, 5:20:02 PM)
After market: 24.13 0 (0%)24.13
+1.25 (+5.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.51 | ||
| Fwd PE | 25.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.19 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y-12.64%
EPS 5Y
EPS Q2Q%
EPS Next Y93.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.28%
Revenue growth 3Y1.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y