A Business at a Glance
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RADIAN GROUP INC
RDN
$5.4B
Mkt Cap
$38.68
+1.36%
RADIAN GROUP INC (RDN) has a current P/E ratio of 9.3, compared to its historical median P/E of 7.5. The stock is currently considered Fair based on its historical valuation range.
RADIAN GROUP INC (RDN) has a 5-year average return on invested capital (ROIC) of 14.5%. This indicates solid capital allocation.
RADIAN GROUP INC (RDN) has a market capitalization of $5.2B. It is classified as a mid-cap stock.
Yes, RADIAN GROUP INC (RDN) pays a dividend with a trailing twelve-month yield of 2.75%. The company also returns capital through share buybacks, with a buyback yield of 5.23%.
Based on historical P/E analysis, RADIAN GROUP INC (RDN) appears fair. The current P/E of 9.3 is 25% above its historical median of 7.5. The estimated fair value CAGR (P/E method) is 8.6%.
RADIAN GROUP INC (RDN) operates in the Surety Insurance industry, within the Financials sector.
RADIAN GROUP INC (RDN) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Summary of Risk Factors Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows and prospects. These risks are discussed more fully under “Item 1A. Risk Factors” of this Annual Report on Form 10-K and include, but are not limited to, the following material risks and uncertainties: Risks Related to Regulatory Matters ▪Legislation and administrative and regulatory changes and interpretations could impact our businesses. ▪Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity. ▪Our insurance subsidiaries are subject to comprehensive insurance regulations and other requirements, which we may fail to satisfy.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.2B | 1.2B | 1.2B | 1.2B | 1.3B |
| Net Income | 562M | 583M | 604M | 603M | 743M | 601M |
| EPS | $4.15 | $4.14 | $3.92 | $3.77 | $4.35 | $3.16 |
| Free Cash Flow | 333M | 116M | -665M | 521M | 371M | 545M |
| ROIC | 0.0% | 12.4% | 13.4% | 14.5% | 18.2% | 14.1% |
| Gross Margin | - | 72.6% | 78.6% | 93.2% | 64.7% | 65.1% |
| Debt/Equity | 0.26 | 0.22 | 0.47 | 0.17 | 0.10 | 0.33 |
| Dividends/Share | $1.07 | $1.02 | $0.98 | $0.90 | $0.80 | $0.55 |
| Operating Income | 0 | 791M | 846M | 864M | 953M | 765M |
| Operating Margin | 0.0% | 66.1% | 70.1% | 73.4% | 80.0% | 57.5% |
| ROE | 11.7% | 12.4% | 13.4% | 14.5% | 18.2% | 14.1% |
| Shares Outstanding | 135M | 141M | 154M | 160M | 171M | 190M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.1B | 1.2B | 1.2B | 1.2B | 1.3B | 1.5B | 1.4B | 1.3B | 1.2B | 1.2B | 1.2B | 1.2B | 1.3B |
| Gross Margin | 46.8% | 44.9% | 46.1% | 34.1% | 60.1% | 60.7% | 60.3% | 65.1% | 64.7% | 93.2% | 78.6% | 72.6% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 407M | 438M | 484M | 347M | 684M | 849M | 479M | 765M | 953M | 864M | 846M | 791M | 0 |
| Op. Margin | 38.0% | 36.7% | 39.1% | 28.4% | 53.7% | 55.6% | 33.3% | 57.5% | 80.0% | 73.4% | 70.1% | 66.1% | 0.0% |
| Net Income | 960M | 287M | 308M | 121M | 606M | 672M | 394M | 601M | 743M | 603M | 604M | 583M | 562M |
| Net Margin | 89.5% | 24.0% | 24.9% | 9.9% | 47.6% | 44.0% | 27.4% | 45.2% | 62.4% | 51.2% | 50.1% | 48.7% | 41.8% |
| Non-Recurring | 0 | 0 | 0 | 202M | 20M | 4.8M | 0 | 0 | 0 | 9.8M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 37.2% | 8.2% | 8.1% | 3.0% | 16.1% | 16.5% | 8.8% | 14.1% | 18.2% | 14.5% | 13.4% | 12.4% | 0.0% |
| ROE | 63.2% | 12.5% | 11.5% | 4.1% | 18.7% | 17.8% | 9.4% | 14.1% | 18.2% | 14.5% | 13.4% | 12.4% | 11.7% |
| ROA | 15.4% | 4.6% | 5.4% | 2.1% | 9.9% | 10.2% | 5.3% | 7.6% | 10.0% | 8.2% | 7.4% | 6.9% | 5.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -146M | 12M | 382M | 361M | 678M | 694M | 658M | 557M | 388M | 529M | -664M | 120M | 337M |
| Free Cash Flow | -165M | -14M | 346M | 332M | 652M | 667M | 641M | 545M | 371M | 521M | -665M | 116M | 333M |
| Owner Earnings | -202M | -31M | 347M | 328M | 641M | 652M | 621M | 513M | 335M | 476M | -717M | 65M | 293M |
| CapEx | 18M | 25M | 36M | 29M | 26M | 28M | 17M | 13M | 18M | 8.5M | 1.6M | 4.2M | 3.7M |
| Maint. CapEx | 13M | 20M | 19M | 19M | 19M | 21M | 18M | 16M | 15M | 12M | 15M | 10M | -467K |
| Growth CapEx | 5.7M | 5.8M | 17M | 10.0M | 6.6M | 6.8M | 0 | 0 | 2.7M | 0 | 0 | 0 | 4.2M |
| D&A | 13M | 20M | 19M | 19M | 19M | 21M | 18M | 16M | 15M | 12M | 15M | 10M | -467K |
| CapEx/OCF | N/A | 217.3% | 9.3% | 8.0% | 3.8% | 4.0% | 2.6% | 2.3% | 4.6% | 3.1% | N/A | 3.5% | 1.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 1.9M | 2.0M | 2.1M | 2.2M | 2.1M | 2.1M | 97M | 103M | 135M | 146M | 152M | 146M | 144M |
| Dividend Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 3.4% | 2.8% | 4.2% | 4.0% | 3.2% | 3.1% | 2.8% |
| Share Buybacks | 0 | 202M | 100M | 6K | 50M | 300M | 226M | 399M | 400M | 133M | 225M | 432M | 273M |
| Buyback Yield | N/A | 7.7% | 3.0% | 0.0% | 1.7% | 6.9% | 6.8% | 11.7% | 13.8% | 3.1% | 4.8% | 8.5% | 5.2% |
| Stock-Based Comp | 43M | 23M | 16M | 13M | 18M | 21M | 19M | 28M | 38M | 41M | 38M | 45M | 45M |
| Debt Repayment | 57M | 156M | 445M | 594M | 0 | 611M | 0 | 0 | 377M | 798M | 1.8B | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -139M | 96M | -1.8B | -2.5B | -3.1B | -4.1B | -5.6B | -4.3B | -4.7B | -4.4B | -2.9B | -560M | 589M |
| Cash & Equiv. | 30M | 47M | 52M | 81M | 95M | 93M | 88M | 151M | 56M | 19M | 19M | 25M | 680M |
| Long-Term Debt | 1.2B | 1.2B | 1.1B | 1.0B | 0 | 611M | 0 | 0 | N/A | N/A | N/A | N/A | 774M |
| Debt/Equity | 0.57 | 0.49 | 0.37 | 0.34 | 0.30 | 0.18 | 0.05 | 0.33 | 0.10 | 0.17 | 0.47 | 0.22 | 0.26 |
| Interest Coverage | 4.5 | 4.8 | 6.0 | 5.5 | 11.1 | 15.1 | 6.7 | 9.1 | 11.3 | 10.0 | 9.6 | 11.6 | 11.6 |
| Equity | 2.1B | 2.5B | 2.9B | 3.0B | 3.5B | 4.0B | 4.3B | 4.3B | 3.9B | 4.4B | 4.6B | 4.8B | 4.8B |
| Total Assets | 6.8B | 5.6B | 5.9B | 5.9B | 6.3B | 6.8B | 7.9B | 7.8B | 7.1B | 7.6B | 8.7B | 8.1B | 10.7B |
| Total Liabilities | 4.7B | 3.1B | 3.0B | 2.9B | 2.8B | 2.8B | 3.7B | 3.6B | 3.1B | 3.2B | 4.1B | 3.3B | 5.8B |
| Intangibles | 96M | 94M | 81M | 53M | 45M | 18M | 13M | 9.8M | 5.5M | 0 | 0 | N/A | 0 |
| Retained Earnings | 407M | 692M | 998M | 1.1B | 1.7B | 2.4B | 2.7B | 3.2B | 3.8B | 4.2B | 4.7B | 5.1B | 5.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 4.16 | 1.22 | 1.37 | 0.55 | 2.77 | 3.20 | 2.00 | 3.16 | 4.35 | 3.77 | 3.92 | 4.14 | 4.15 |
| Owner EPS | -0.88 | -0.13 | 1.54 | 1.49 | 2.93 | 3.10 | 3.15 | 2.70 | 1.96 | 2.98 | -4.65 | 0.46 | 2.17 |
| Book Value | 9.09 | 10.62 | 12.77 | 13.63 | 15.95 | 19.27 | 21.77 | 22.40 | 22.95 | 27.49 | 29.99 | 33.98 | 35.67 |
| Cash Flow/Share | -0.63 | 0.05 | 1.70 | 1.64 | 3.10 | 3.31 | 3.35 | 2.93 | 2.27 | 3.31 | -4.30 | 0.85 | 4.17 |
| Dividends/Share | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.50 | 0.55 | 0.80 | 0.90 | 0.98 | 1.02 | 1.07 |
| Shares Out. | 230.7M | 235.2M | 225.0M | 220.2M | 218.8M | 210.1M | 196.8M | 190.1M | 170.8M | 160.0M | 154.2M | 140.7M | 134.8M |
| Valuation | |||||||||||||
| P/E Ratio | 3.3 | 9.2 | 10.8 | 31.5 | 4.7 | 6.5 | 8.5 | 5.7 | 3.9 | 7.2 | 7.8 | 8.7 | 9.3 |
| P/FCF | N/A | N/A | 9.7 | 11.5 | 4.4 | 6.6 | 5.2 | 6.3 | 7.8 | 8.3 | N/A | 44.0 | 15.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 1.5 | 1.1 | 1.2 | 1.3 | 0.8 | 1.1 | 0.8 | 0.8 | 0.7 | 1.0 | 1.0 | 1.1 | 1.1 |
| Price/Sales | 2.6 | 2.7 | 1.9 | 2.7 | 2.6 | 2.5 | 2.0 | 2.7 | 2.7 | 2.9 | 3.9 | 3.9 | 3.9 |
| FCF Yield | -5.1% | -0.5% | 10.4% | 8.7% | 22.7% | 15.3% | 19.1% | 16.0% | 12.8% | 12.0% | -14.1% | 2.3% | 6.4% |
| Market Cap | 3.2B | 2.6B | 3.3B | 3.8B | 2.9B | 4.4B | 3.4B | 3.4B | 2.9B | 4.3B | 4.7B | 5.1B | 5.2B |
| Avg. Price | 12.26 | 13.72 | 10.45 | 15.10 | 15.37 | 18.51 | 14.64 | 19.16 | 18.71 | 22.57 | 30.61 | 33.14 | 38.68 |
| Year-End Price | 13.91 | 11.18 | 14.86 | 17.35 | 13.13 | 20.79 | 17.03 | 17.93 | 16.96 | 27.04 | 30.65 | 36.16 | 38.68 |
RADIAN GROUP INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
RADIAN GROUP INC trades at 9.3x trailing earnings, compared to its 15-year median P/E of 7.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 45.6x vs a median of 7.8x. The company's 5-year average ROIC is 14.5% with a gross margin of 74.8%. Total shareholder yield (dividends + buybacks) is 8.0%. At current prices, the estimated annualized return to fair value is -9.7%.
RADIAN GROUP INC (RDN) has a net profit margin of 48.7%. This is a strong margin indicating high profitability.
RADIAN GROUP INC (RDN) generated $116 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
RADIAN GROUP INC (RDN) has a debt-to-equity ratio of 0.22. This indicates a conservatively financed balance sheet.
RADIAN GROUP INC (RDN) reported earnings per share (EPS) of $4.14 in its most recent fiscal year.
RADIAN GROUP INC (RDN) has a return on equity (ROE) of 12.4%. This indicates moderate shareholder returns.
RADIAN GROUP INC (RDN) has a 5-year average gross margin of 74.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for RADIAN GROUP INC (RDN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RADIAN GROUP INC (RDN) has a book value per share of $33.98, based on its most recent annual SEC filing.