Radian Group
Market Cap
US$5.1b
Last Updated
2020/01/23 23:50 UTC
Data Sources
Company Financials +
Executive Summary
Radian Group Inc., through its subsidiaries, engages in the mortgage and real estate services business in the United States.
Rewards
Risk Analysis
No risks detected for RDN from our risk checks.
Snowflake Analysis
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
Stable Share Price: RDN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.7%
RDN
-0.7%
US Mortgage
-0.09%
US Market
1 Year Return
38.1%
RDN
15.4%
US Mortgage
23.9%
US Market
Return vs Industry: RDN exceeded the US Mortgage industry which returned 18.8% over the past year.
Return vs Market: RDN exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| RDN | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | -0.7% | -0.09% |
| 30 Day | 0.4% | -0.9% | 3.1% |
| 90 Day | 1.0% | -0.3% | 10.4% |
| 1 Year | 38.2%38.1% | 17.9%15.4% | 26.6%23.9% |
| 3 Year | 37.2%37.0% | 26.2%17.5% | 50.9%41.2% |
| 5 Year | 57.1%56.6% | 73.1%54.4% | 78.1%58.5% |
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
2 weeks ago | Simply Wall St
Does Radian Group's (NYSE:RDN) Share Price Gain of 56% Match Its Business Performance?1 month ago | Simply Wall St
Was Radian Group Inc.'s (NYSE:RDN) Earnings Growth Better Than The Industry's?2 months ago | Simply Wall St
How Much is Radian Group Inc.'s (NYSE:RDN) CEO Getting Paid?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 ($24.61) is trading below our estimate of fair value ($59.93)
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 (7.9x) compared to the Mortgage industry average (14.2x).
PE vs Market: RDN is good value based on its PE Ratio (7.9x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: RDN is poor value based on its PEG Ratio (71x)
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 6 analysts?
0.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RDN's forecast earnings growth (0.1% per year) is below the savings rate (1.7%).
Earnings vs Market: RDN's earnings (0.1% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: RDN's earnings are forecast to grow, but not significantly.
Revenue vs Market: RDN's revenue (2.3% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: RDN's revenue (2.3% 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 (14.2%).
Next Steps
Past Performance
How has Radian Group performed over the past 5 years?
-16.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RDN has high quality earnings.
Growing Profit Margin: RDN's current net profit margins (44.3%) are higher than last year (37.6%).
Past Earnings Growth Analysis
Earnings Trend: RDN's earnings have declined by -16.4% per year over the past 5 years.
Accelerating Growth: RDN's earnings growth over the past year (37.6%) exceeds its 5-year average (-16.4% per year).
Earnings vs Industry: RDN earnings growth over the past year (37.6%) exceeded the Mortgage industry 23.1%.
Return on Equity
High ROE: RDN's Return on Equity (16.6%) is considered low.
Return on Assets
Return on Capital Employed
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 1.6x 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?
0.039%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RDN's dividend (0.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: RDN's dividend (0.04%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
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?
3.9yrs
Average management tenure
CEO
Rick Thornberry (61yo)
2.8yrs
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 above average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.
Management Age and Tenure
3.9yrs
Average Tenure
54yo
Average Age
Experienced Management: RDN's management team is considered experienced (3.9 years average tenure).
Board Age and Tenure
8.9yrs
Average Tenure
65yo
Average Age
Experienced Board: RDN's board of directors are considered experienced (8.9 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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Rick Thornberry (61yo)
CEO & Director
- Tenure: 2.8yrs
- Compensation: US$9.53m
Bill Tomljanovic (57yo)
Chief Investment Officer
- Tenure: 7.1yrs
Frank Hall (51yo)
Senior EVP & CFO
- Tenure: 5yrs
- Compensation: US$2.30m
Ted Hoffman (45yo)
Senior Executive VP
- Tenure: 11.5yrs
- Compensation: US$2.38m
Brien McMahon (59yo)
Senior EVP & Chief Franchise Officer
- Tenure: 2yrs
- Compensation: US$2.29m
Derek Brummer (48yo)
Senior Executive Vice President of Mortgage Insurance & Risk Services
- Tenure: 6.6yrs
- Compensation: US$2.86m
Emily Riley
Senior Vice President of Corporate Communications & IR
- Tenure: 10.2yrs
Anita Scott
Senior VP & Chief Human Resources Officer
- Tenure: 0.3yrs
Eric Ray (57yo)
Senior Executive Vice President of Technology & Transaction Services
- Tenure: 1.9yrs
Robert Quigley (47yo)
Senior VP
- Tenure: 1.2yrs
Board Members
Rick Thornberry (61yo)
CEO & Director
- Tenure: 2.8yrs
- Compensation: US$9.53m
David Carney (82yo)
Independent Director
- Tenure: 27.2yrs
- Compensation: US$254.13k
Herb Wender (82yo)
Non-Executive Chairman of the Board
- Tenure: 14.7yrs
- Compensation: US$771.16k
Howard Culang (72yo)
Independent Director
- Tenure: 20.6yrs
- Compensation: US$244.13k
Lisa Hess (64yo)
Independent Director
- Tenure: 8.9yrs
- Compensation: US$210.88k
Debra Hess (55yo)
Independent Director
- Tenure: 0.8yrs
Noel Spiegel (71yo)
Independent Director
- Tenure: 8.9yrs
- Compensation: US$221.38k
Guy Muzio (65yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$201.38k
Greg Serio (57yo)
Independent Director
- Tenure: 7.7yrs
- 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$5.079b
- Shares outstanding: 201.15m
- Website: https://www.radian.biz
Number of Employees
Location
- Radian Group Inc.
- 1500 Market Street
- Philadelphia
- Pennsylvania
- 19102
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RDN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1992 |
| RAG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 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 Insurance segment offers credit-related insurance coverage, primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management solutions to mortgage lending institutions and mortgage credit investors. This segment primarily serves mortgage bankers, commercial banks, savings institutions, credit unions and community banks. The Services segment offers mortgage services, including transaction management services, such as loan review, residential mortgage-backed securities securitization and distressed asset reviews, review and valuation services related to single family rental properties, servicer and loan surveillance, and underwriting; real estate services comprising real estate owned asset management, and real estate valuation and brokerage services, as well as software as a service solutions and platforms; and title services that include title insurance products, and title settlement and closing services. This segment provides its mortgage and real estate services to mortgage lenders, financial institutions, mortgage and real estate investors, government entities, and others. The company was founded in 1977 and is headquartered in Philadelphia, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 23:50 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.