NYSE:RDN

Stock Analysis Report

Executive Summary

Radian Group Inc., through its subsidiaries, engages in the mortgage and real estate services business in the United States.

Snowflake

Fundamentals

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

RDN

1.6%

US Mortgage

0.4%

US Market


1 Year Return

26.0%

RDN

15.2%

US Mortgage

6.9%

US Market

Return vs Industry: RDN exceeded the US Mortgage industry which returned 15.2% over the past year.

Return vs Market: RDN exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

RDNIndustryMarket
7 Day2.1%1.6%0.4%
30 Day0.2%0.7%-1.1%
90 Day2.1%4.2%-0.5%
1 Year26.0%26.0%17.7%15.2%9.3%6.9%
3 Year65.1%64.8%41.2%31.8%45.8%36.4%
5 Year55.8%55.4%71.5%53.4%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RDN ($23.82) is trading below our estimate of fair value ($48.89)

Significantly Undervalued: RDN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDN is good value based on its PE Ratio (8.2x) compared to the Mortgage industry average (14.4x).

PE vs Market: RDN is good value based on its PE Ratio (8.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: RDN is poor value based on its PEG Ratio (18.5x)


Price to Book Ratio

PB vs Industry: RDN is overvalued based on its PB Ratio (1.3x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Radian Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDN's forecast earnings growth (0.4% per year) is below the savings rate (2.7%).

Earnings vs Market: RDN's earnings (0.4% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: RDN's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RDN's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RDN's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Radian Group performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RDN's earnings have declined by -16.3% per year over the past 5 years.

Accelerating Growth: RDN's earnings growth over the past year (56.9%) exceeds its 5-year average (-16.3% per year).

Earnings vs Industry: RDN earnings growth over the past year (56.9%) exceeded the Mortgage industry 31.5%.


Return on Equity

High ROE: RDN's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: RDN has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: RDN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Radian Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: RDN's debt is covered by short term assets (assets are 1.799000x debt).


Financial Institutions Analysis

Asset Level: RDN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RDN has a sufficient allowance for bad loans.

Low Risk Liabilities: RDN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RDN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RDN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RDN has an appropriate level of bad loans.


Next Steps

Dividend

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

0.041%

Current Dividend Yield


Dividend Yield vs Market

company0.04%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RDN's dividend (0.041%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RDN's dividend (0.041%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: RDN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: RDN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RDN is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Radian Group's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Rick Thornberry (61yo)

2.6yrs

Tenure

US$9,533,691

Compensation

Mr. Richard G. Thornberry, also known as Rick, has been the Chief Executive Officer of Radian Group Inc. since March 6, 2017. Mr. Thornberry serves as President and Director of Radian Guaranty Inc., Radian ...


CEO Compensation Analysis

Compensation vs. Market: Rick's total compensation ($USD9.53M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: RDN's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.7yrs

Average Tenure

65yo

Average Age

Experienced Board: RDN's board of directors are considered experienced (8.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Rick Thornberry (61yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$9.53m
  • Bill Tomljanovic (57yo)

    Chief Investment Officer

    • Tenure: 6.8yrs
  • Frank Hall (51yo)

    Senior EVP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$2.30m
  • Ted Hoffman (45yo)

    Senior Executive VP

    • Tenure: 11.3yrs
    • Compensation: US$2.38m
  • Brien McMahon (59yo)

    Senior EVP & Chief Franchise Officer

    • Tenure: 1.8yrs
    • Compensation: US$2.29m
  • Derek Brummer (48yo)

    Senior Executive Vice President of Mortgage Insurance & Risk Services

    • Tenure: 6.3yrs
    • Compensation: US$2.86m
  • Emily Riley

    Senior Vice President of Corporate Communications & IR

    • Tenure: 9.9yrs
  • Anita Scott

    Chief Human Resources Officer

    • Tenure: 0.08yrs
  • Eric Ray (57yo)

    Senior Executive Vice President of Technology & Transaction Services

    • Tenure: 1.7yrs
  • Robert Quigley (47yo)

    Senior VP

    • Tenure: 0.9yrs

Board Members

  • Rick Thornberry (61yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$9.53m
  • David Carney (82yo)

    Independent Director

    • Tenure: 26.9yrs
    • Compensation: US$254.13k
  • Herb Wender (82yo)

    Non-Executive Chairman of the Board

    • Tenure: 14.4yrs
    • Compensation: US$771.16k
  • Howard Culang (72yo)

    Independent Director

    • Tenure: 20.3yrs
    • Compensation: US$244.13k
  • Lisa Hess (64yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$210.88k
  • Debra Hess (55yo)

    Independent Director

    • Tenure: 0.6yrs
  • Noel Spiegel (71yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$221.38k
  • Guy Muzio (65yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$201.38k
  • Greg Serio (57yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$230.88k

Company Information

Radian Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Radian Group Inc.
  • Ticker: RDN
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$4.842b
  • Shares outstanding: 203.28m
  • Website: https://www.radian.biz

Number of Employees


Location

  • Radian Group Inc.
  • 1500 Market Street
  • Philadelphia
  • Pennsylvania
  • 19102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDNNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1992
RAGDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1992

Biography

Radian Group Inc., through its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates in two segments, Mortgage Insurance and Services. The Mortgage Insur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.