Radian Group
Market Cap
US$4.1b
Last Updated
2021/01/22 01:29 UTC
Data Sources
Company Financials +
Executive Summary
Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: RDN's weekly volatility has decreased from 12% to 6% over the past year.
Market Performance
7 Day Return
-2.1%
RDN
-1.1%
US Mortgage
1.4%
US Market
1 Year Return
-14.8%
RDN
4.7%
US Mortgage
22.6%
US Market
Return vs Industry: RDN underperformed the US Mortgage industry which returned 7.4% over the past year.
Return vs Market: RDN underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| RDN | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -1.1% | 1.4% |
| 30 Day | 8.1% | 1.5% | 4.9% |
| 90 Day | 15.7% | 10.9% | 14.6% |
| 1 Year | -12.3%-14.8% | 7.8%4.7% | 25.4%22.6% |
| 3 Year | -2.2%-5.1% | 20.0%10.5% | 46.8%37.0% |
| 5 Year | 122.8%116.1% | 88.7%61.8% | 132.0%106.1% |
Long-Term 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
7 months ago | Simply Wall St
A Rising Share Price Has Us Looking Closely At Radian Group Inc.'s (NYSE:RDN) P/E Ratio8 months ago | Simply Wall St
Radian Group Inc. (NYSE:RDN): What Does Its Beta Value Mean For Your Portfolio?8 months ago | Simply Wall St
How Does Radian Group's (NYSE:RDN) P/E Compare To Its Industry, After Its Big Share Price Gain?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 ($21.52) is trading below our estimate of fair value ($49.71)
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 (10.6x) compared to the US Mortgage industry average (13.2x).
PE vs Market: RDN is good value based on its PE Ratio (10.6x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: RDN is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: RDN's PB Ratio (1x) is in line with the US Mortgage industry average.
Next Steps
Future Growth
How is Radian Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
22.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RDN's forecast earnings growth (22.1% per year) is above the savings rate (2%).
Earnings vs Market: RDN's earnings (22.1% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RDN's revenue (3.2% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: RDN's revenue (3.2% 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%).
Next Steps
Past Performance
How has Radian Group performed over the past 5 years?
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RDN has high quality earnings.
Growing Profit Margin: RDN's current net profit margins (27.9%) are lower than last year (44.3%).
Past Earnings Growth Analysis
Earnings Trend: RDN's earnings have grown by 8.8% per year over the past 5 years.
Accelerating Growth: RDN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RDN had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Mortgage industry average (2.7%).
Return on Equity
High ROE: RDN's Return on Equity (9.9%) is considered low.
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
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.
Next Steps
Dividend
What is Radian Group current dividend yield, its reliability and sustainability?
2.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RDN's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: RDN's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (18.5%), 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 (62 yo)
3.83yrs
Tenure
US$8,197,874
Compensation
Mr. Richard G. Thornberry, also known as Rick, is Chief Executive Officer of Radian Group Inc. He has more than 30 years of experience in the financial services industry, as a leader of some of the most in...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD8.20M) is above average for companies of similar size in the US market ($USD5.00M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.83yrs | US$8.20m | 0.063% $ 2.6m | |
| Senior EVP & CFO | 6yrs | US$2.36m | 0.032% $ 1.3m | |
| Senior EVP | 0.083yr | US$2.36m | 0.047% $ 1.9m | |
| President of Mortgage | 7.58yrs | US$2.80m | 0.066% $ 2.7m | |
| Senior EVP | no data | US$2.23m | 0.031% $ 1.3m | |
| Chief Investment Officer | 8.08yrs | no data | no data | |
| Executive VP | 2.17yrs | no data | 0.0087% $ 359.5k | |
| Executive VP | 7.92yrs | no data | no data | |
| Executive VP & Chief People Officer | no data | no data | no data | |
| Chief Economist & Senior VP | 5.92yrs | no data | no data | |
| Senior Vice President of Structured Products | 4.33yrs | no data | no data | |
| Senior Vice President of Product Development | no data | no data | no data |
5.9yrs
Average Tenure
52yo
Average Age
Experienced Management: RDN's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.83yrs | US$8.20m | 0.063% $ 2.6m | |
| Independent Non-Executive Chairman of the Board | 15.67yrs | US$513.00k | 0.10% $ 4.1m | |
| Independent Director | 21.58yrs | US$275.63k | 0.0042% $ 173.1k | |
| Independent Director | 9.92yrs | US$264.38k | 0% $ 0 | |
| Independent Director | 1.83yrs | US$188.97k | 0% $ 0 | |
| Independent Director | 0.92yr | no data | 0.0014% $ 58.1k | |
| Independent Director | 0.92yr | no data | no data | |
| Independent Director | 9.92yrs | US$252.63k | 0.016% $ 645.6k | |
| Independent Director | 8.67yrs | US$256.03k | 0.0026% $ 107.6k | |
| Independent Director | 8.67yrs | US$264.38k | 0% $ 0 |
8.7yrs
Average Tenure
62yo
Average Age
Experienced Board: RDN's board of directors are considered experienced (8.7 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.
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 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$4.122b
- Shares outstanding: 191.56m
- 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 |
| RAG | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Oct 1992 |
Biography
Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. The company operates in two segments, Mortgage Insurance and Services. The...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 01:29 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.