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RDN

Radian GroupNYSE:RDN Stock Report

Last Price

US$23.59

Market Cap

US$4.2b

7D

-0.2%

1Y

8.8%

Updated

17 Jan, 2022

Data

Company Financials +
RDN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends5/6

RDN Stock Overview

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

Radian Group Competitors

Essent Group

NYSE:ESNT

US$5.4b

MGIC Investment

NYSE:MTG

US$5.4b

Federal National Mortgage Association

OTCPK:FNMA

US$5.0b

PennyMac Financial Services

NYSE:PFSI

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Radian Group
Historical stock prices
Current Share PriceUS$23.59
52 Week HighUS$25.31
52 Week LowUS$19.10
Beta1.42
1 Month Change16.26%
3 Month Change-1.99%
1 Year Change8.76%
3 Year Change30.76%
5 Year Change30.04%
Change since IPO396.63%

Recent News & Updates

Sep 14

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.

Shareholder Returns

RDNUS MortgageUS Market
7D-0.2%-0.4%-0.3%
1Y8.8%-7.9%13.7%

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.

Price Volatility

Is RDN's price volatile compared to industry and market?
RDN volatility
RDN Average Weekly Movement4.0%
Mortgage Industry Average Movement3.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19771,600Rick Thornberryhttps://www.radian.com

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

How do Radian Group's earnings and revenue compare to its market cap?
RDN fundamental statistics
Market CapUS$4.23b
Earnings (TTM)US$555.24m
Revenue (TTM)US$1.36b

7.6x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDN income statement (TTM)
RevenueUS$1.36b
Cost of RevenueUS$249.89m
Gross ProfitUS$1.11b
ExpensesUS$556.29m
EarningsUS$555.24m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)3.10
Gross Margin81.64%
Net Profit Margin40.78%
Debt/Equity Ratio37.1%

How did RDN perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

18%

Payout Ratio

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

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.


Future Growth

How is Radian Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.9%

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%).


Past Performance

How has Radian Group performed over the past 5 years?

15.2%

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.


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


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.


Dividend

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

2.37%

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).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Rick Thornberry (63 yo)

4.83yrs

Tenure

US$7,944,227

Compensation

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.


Leadership Team

Experienced Management: RDN's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: RDN's board of directors are considered experienced (7.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Radian Group Inc.'s 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
  • Implied Market Cap: US$4.230b
  • Shares outstanding: 179.33m
  • Website: https://www.radian.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:33
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.