DB:RWA

Stock Analysis Report

Executive Summary

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Radware's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RWA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

RWA

-13.8%

DE Communications

-5.7%

DE Market


1 Year Return

0.7%

RWA

-12.1%

DE Communications

6.1%

DE Market

Return vs Industry: RWA exceeded the German Communications industry which returned -12.1% over the past year.

Return vs Market: RWA underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

RWAIndustryMarket
7 Day4.8%-13.8%-5.7%
30 Day-6.8%-13.6%-5.7%
90 Day0.9%-17.7%-3.6%
1 Year0.7%0.7%-11.6%-12.1%9.3%6.1%
3 Year50.5%50.5%-18.7%-18.9%8.9%-0.7%
5 Year12.2%12.2%72.4%72.1%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Radware's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Radware undervalued compared to its fair value and its price relative to the market?

49.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RWA (€21.8) is trading above our estimate of fair value (€19.91)

Significantly Below Fair Value: RWA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RWA is poor value based on its PE Ratio (49.6x) compared to the Communications industry average (18.5x).

PE vs Market: RWA is poor value based on its PE Ratio (49.6x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: RWA is poor value based on its PEG Ratio (9.1x)


Price to Book Ratio

PB vs Industry: RWA is good value based on its PB Ratio (2.8x) compared to the DE Communications industry average (3x).


Next Steps

Future Growth

How is Radware forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWA's forecast earnings growth (5.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: RWA's earnings (5.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: RWA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RWA's revenue (8.1% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: RWA's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RWA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Radware performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWA has high quality earnings.

Growing Profit Margin: RWA's current net profit margins (9%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: RWA's earnings have declined by -9.7% per year over the past 5 years.

Accelerating Growth: RWA's earnings growth over the past year (92.3%) exceeds its 5-year average (-9.7% per year).

Earnings vs Industry: RWA earnings growth over the past year (92.3%) exceeded the Communications industry 31.6%.


Return on Equity

High ROE: RWA's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Radware's financial position?


Financial Position Analysis

Short Term Liabilities: RWA's short term assets ($222.5M) exceed its short term liabilities ($126.0M).

Long Term Liabilities: RWA's short term assets ($222.5M) exceed its long term liabilities ($74.3M).


Debt to Equity History and Analysis

Debt Level: RWA is debt free.

Reducing Debt: RWA has not had any debt for past 5 years.

Debt Coverage: RWA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RWA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RWA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RWA's debt is covered by short term assets.


Next Steps

Dividend

What is Radware's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RWA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RWA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RWA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RWA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RWA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Roy Zisapel (48yo)

23.8yrs

Tenure

US$3,236,000

Compensation

Mr. Roy Zisapel has been President, Chief Executive Officer, and Director of Radware Ltd. since its inception in May 1996. He serves as Chief Executive Officer at Radware Canada Holdings Inc. Before foundi ...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD3.24M) is above average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Roy's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yehuda Zisapel
Co-Founder & Chairman10.3yrsno data8.81% $90.7m
Roy Zisapel
Co-Founder23.8yrsUS$3.24m2.87% $29.5m
Doron Abramovitch
Chief Financial Officer4.4yrsUS$1.21mno data
Gabi Malka
Chief Operating Officer5.9yrsUS$682.00kno data
David Aviv
CTO & VP of Advanced Services4.1yrsUS$491.00kno data
Anat Earon-Heilborn
Vice President of Investor Relations0yrsno datano data
Hannah Mordechai
VP & General Counsel0.5yrsno datano data
Anna Convery-Pelletier
Chief Marketing Officer3.2yrsUS$908.00kno data
Riki Goldreich
Vice President of Global Human Resources0yrsno datano data
Sharon Trachtman
Chief Business Operation Officer3.2yrsno datano data

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: RWA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yehuda Zisapel
Co-Founder & Chairman10.3yrsno data8.81% $90.7m
Roy Zisapel
Co-Founder23.8yrsUS$3.24m2.87% $29.5m
Yael Langer
Director10.6yrsno datano data
David Rubner
Independent Director10.3yrsno datano data
Avraham Asheri
Independent Director10.6yrsno datano data
Joel Maryles
Independent Director6.1yrsno datano data
Yair Tauman
Independent Director9.3yrsno datano data

10.3yrs

Average Tenure

71yo

Average Age

Experienced Board: RWA's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Radware Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Radware Ltd.
  • Ticker: RWA
  • Exchange: DB
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$1.121b
  • Listing Market Cap: US$1.030b
  • Shares outstanding: 46.89m
  • Website: https://www.radware.com

Number of Employees


Location

  • Radware Ltd.
  • 22 Raoul Wallenberg Street
  • Tel Aviv
  • 6971917
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDWRNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDSep 1999
RWADB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1999

Biography

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack prevention device; AppWall, a Web application firewall; and DefenseFlow, a cyber-command and control application. It also provides Alteon D Line, an application delivery controller/load balancer for Web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications. In addition, the company offers Security Updates Subscription, which provides security updates to protect customers against the latest threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks; Alteon Global Elastic License that captures application lifecycle for large ADC deployments; APSolute Vision, a management and monitoring tool for company’s application delivery and cyber security solutions; and MSSP Portal, a DDoS detection and mitigation service portal. Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:58
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.