RDN Stock Overview
Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States.
No risks detected for RDN from our risk checks.
Radian Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.59|
|52 Week High||US$25.31|
|52 Week Low||US$19.10|
|1 Month Change||16.26%|
|3 Month Change||-1.99%|
|1 Year Change||8.76%|
|3 Year Change||30.76%|
|5 Year Change||30.04%|
|Change since IPO||396.63%|
Recent News & Updates
Radian Group: Another Near-Term Capital Gain Prospect Market-Makers See As Underpriced
Comparisons with RDN are from scores of Property-Casualty insurance providers viewed continually by institutional investors as capital gain prospects. Values are based on how market professionals protect their own capital, put at risk in order to fill multi-million-$ trade orders placed by institutions managing multi-billion-$ portfolios. Those client trade orders must be executed quickly and quietly or run the risk of being front-run by hordes of opportunists. Often market-makers must create short positions on their books. But they lay off the risk of rising prices on those shorts to other speculator-pros, all for a cost, in separate but related markets for derivatives. What the cost of that protection is, and how it is provided tells what the involved, well-informed players think coming prices can be. Implied price-range forecasts.
|RDN||US Mortgage||US Market|
Return vs Industry: RDN exceeded the US Mortgage industry which returned -7.9% over the past year.
Return vs Market: RDN underperformed the US Market which returned 13.7% over the past year.
|RDN Average Weekly Movement||4.0%|
|Mortgage Industry Average Movement||3.6%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: RDN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RDN's weekly volatility (4%) has been stable over the past year.
About the Company
Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. Its Mortgage segment offers credit-related insurance coverage primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management and contract underwriting solutions. This segment primarily serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks.
Radian Group Fundamentals Summary
|RDN fundamental statistics|
Is RDN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RDN income statement (TTM)|
|Cost of Revenue||US$249.89m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 22, 2022
|Earnings per share (EPS)||3.10|
|Net Profit Margin||40.78%|
How did RDN perform over the long term?See historical performance and comparison
2.4%Current Dividend Yield
Is Radian Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RDN ($23.59) is trading below our estimate of fair value ($64.81)
Significantly Below Fair Value: 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 (7.6x) compared to the US Mortgage industry average (12.9x).
PE vs Market: RDN is good value based on its PE Ratio (7.6x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: RDN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: RDN's PB Ratio (1x) is in line with the US Mortgage industry average.
How is Radian Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RDN's forecast earnings growth (2.9% per year) is above the savings rate (2%).
Earnings vs Market: RDN's earnings (2.9% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: RDN's earnings are forecast to grow, but not significantly.
Revenue vs Market: RDN's revenue (3.6% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: RDN's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RDN's Return on Equity is forecast to be low in 3 years time (12.1%).
How has Radian Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RDN has high quality earnings.
Growing Profit Margin: RDN's current net profit margins (40.8%) are higher than last year (27.9%).
Past Earnings Growth Analysis
Earnings Trend: RDN's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: RDN's earnings growth over the past year (36.5%) exceeds its 5-year average (15.2% per year).
Earnings vs Industry: RDN earnings growth over the past year (36.5%) exceeded the Mortgage industry 32%.
Return on Equity
High ROE: RDN's Return on Equity (13%) is considered low.
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
Financial Institutions Analysis
Asset Level: RDN's Assets to Equity ratio (1.9x) 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, 100% of its liabilities are made up of higher risk sources of funding.
Loan Level: Insufficient data to determine if RDN has an appropriate level of Loans to Assets ratio.
Low Risk Deposits: RDN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Level of Bad Loans: Insufficient data to determine if RDN has an appropriate level of bad loans.
What is Radian Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RDN's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: RDN's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: RDN's dividends per share have been stable in the past 10 years.
Growing Dividend: RDN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.3%), RDN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RDN's dividends in 3 years are forecast to be well covered by earnings (17.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rick Thornberry (63 yo)
Mr. Richard G. Thornberry, also known as Rick, is Chief Executive Officer of Radian Group Inc. He has more than 30 years of experience in the financial services industry, as a leader of some of the most in...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD7.94M) is above average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Experienced Management: RDN's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: RDN's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RDN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Radian Group Inc.'s employee growth, exchange listings and data sources
- Name: Radian Group Inc.
- Ticker: RDN
- Exchange: NYSE
- Founded: 1977
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Implied Market Cap: US$4.230b
- Shares outstanding: 179.33m
- Website: https://www.radian.com
Number of Employees
- Radian Group Inc.
- 1500 Market Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/17 23:33|
|End of Day Share Price||2022/01/14 00:00|
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.