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RadNet

Nasdaq:RDNT
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDNT
Nasdaq
$668M
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The last earnings update was 97 days ago. More info.


Add to Portfolio Compare Print
  • RadNet has significant price volatility in the past 3 months.
RDNT Share Price and Events
7 Day Returns
-1.2%
NasdaqGM:RDNT
-0.8%
US Healthcare
0.5%
US Market
1 Year Returns
36.8%
NasdaqGM:RDNT
9.3%
US Healthcare
2%
US Market
RDNT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RadNet (RDNT) -1.2% 10.1% 2.7% 36.8% 143.4% 608.8%
US Healthcare -0.8% 5.4% -3.6% 9.3% 40.3% 88%
US Market 0.5% 6.3% 1.9% 2% 45.1% 40.5%
1 Year Return vs Industry and Market
  • RDNT outperformed the Healthcare industry which returned 9.3% over the past year.
  • RDNT outperformed the Market in United States of America which returned 2% over the past year.
Price Volatility
RDNT
Industry
5yr Volatility vs Market

RDNT Value

 Is RadNet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RadNet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RadNet.

NasdaqGM:RDNT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:RDNT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.768 (1 + (1- 21%) (87.71%))
1.301
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.3
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.301 * 7.27%)
12.19%

Discounted Cash Flow Calculation for NasdaqGM:RDNT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RadNet is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:RDNT DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 64.48 61.21 65.72 70.57 75.77
Source Analyst x2 Analyst x1 Est @ 7.37% Est @ 7.37% Est @ 7.37%
Present Value
Discounted (@ 12.19%)
57.47 48.64 46.55 44.55 42.64
Present value of next 5 years cash flows $239.85
NasdaqGM:RDNT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $75.77 × (1 + 2.73%) ÷ (12.19% – 2.73%)
$823.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $823.15 ÷ (1 + 12.19%)5
$463.21
NasdaqGM:RDNT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $239.85 + $463.21
$703.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $703.06 / 48.87
$14.39
NasdaqGM:RDNT Discount to Share Price
Calculation Result
Value per share (USD) From above. $14.39
Current discount Discount to share price of $13.68
= -1 x ($13.68 - $14.39) / $14.39
4.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RadNet is available for.
Intrinsic value
5%
Share price is $13.68 vs Future cash flow value of $14.39
Current Discount Checks
For RadNet to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RadNet's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • RadNet's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RadNet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RadNet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:RDNT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-0.09
NasdaqGM:RDNT Share Price ** NasdaqGM (2019-02-13) in USD $13.68
United States of America Healthcare Industry PE Ratio Median Figure of 52 Publicly-Listed Healthcare Companies 21.6x
United States of America Market PE Ratio Median Figure of 3,046 Publicly-Listed Companies 16.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RadNet.

NasdaqGM:RDNT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:RDNT Share Price ÷ EPS (both in USD)

= 13.68 ÷ -0.09

-156.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RadNet is loss making, we can't compare its value to the US Healthcare industry average.
  • RadNet is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does RadNet's expected growth come at a high price?
Raw Data
NasdaqGM:RDNT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -156.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
74.8%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 39 Publicly-Listed Healthcare Companies 1.49x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for RadNet, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RadNet's assets?
Raw Data
NasdaqGM:RDNT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $1.95
NasdaqGM:RDNT Share Price * NasdaqGM (2019-02-13) in USD $13.68
United States of America Healthcare Industry PB Ratio Median Figure of 91 Publicly-Listed Healthcare Companies 2.49x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.81x
NasdaqGM:RDNT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:RDNT Share Price ÷ Book Value per Share (both in USD)

= 13.68 ÷ 1.95

7.01x

* Primary Listing of RadNet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RadNet is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess RadNet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. RadNet has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RDNT Future Performance

 How is RadNet expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
74.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RadNet expected to grow at an attractive rate?
  • RadNet's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • RadNet's earnings growth is expected to exceed the United States of America market average.
  • RadNet's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:RDNT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:RDNT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 74.8%
NasdaqGM:RDNT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4.2%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:RDNT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:RDNT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,042 121 31 2
2019-12-31 1,027 124 23 3
2018-12-31 966 122 12 3
NasdaqGM:RDNT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 953 154 -4
2018-06-30 939 139 -6
2018-03-31 925 136 -6
2017-12-31 922 142 0
2017-09-30 912 112 11
2017-06-30 909 90 9
2017-03-31 897 102 7
2016-12-31 885 92 7
2016-09-30 875 82 5
2016-06-30 859 91 11
2016-03-31 845 71 11
2015-12-31 810 67 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RadNet's earnings are expected to grow significantly at over 20% yearly.
  • RadNet's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:RDNT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from RadNet Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:RDNT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.62 0.63 0.61 2.00
2019-12-31 0.48 0.49 0.46 2.00
2018-12-31 0.25 0.25 0.24 2.00
NasdaqGM:RDNT Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -0.09
2018-06-30 -0.13
2018-03-31 -0.13
2017-12-31 0.00
2017-09-30 0.23
2017-06-30 0.20
2017-03-31 0.16
2016-12-31 0.16
2016-09-30 0.10
2016-06-30 0.24
2016-03-31 0.24
2015-12-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RadNet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess RadNet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RadNet has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RDNT Past Performance

  How has RadNet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RadNet's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RadNet does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare RadNet's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare RadNet's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
RadNet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RadNet Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:RDNT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 953.49 -4.17 84.96
2018-06-30 938.95 -5.98 39.82
2018-03-31 924.57 -6.08 80.22
2017-12-31 922.19 0.05 78.63
2017-09-30 911.57 10.69 77.00
2017-06-30 908.61 9.11 74.36
2017-03-31 897.16 7.42 74.60
2016-12-31 884.54 7.23 74.21
2016-09-30 875.30 4.75 75.09
2016-06-30 859.03 11.09 75.61
2016-03-31 844.75 10.87 73.73
2015-12-31 809.63 7.71 71.67
2015-09-30 779.47 11.03 69.97
2015-06-30 755.17 7.50 67.95
2015-03-31 729.96 9.25 65.99
2014-12-31 717.57 1.38 64.49
2014-09-30 710.36 -1.59 62.95
2014-06-30 701.48 -6.50 63.47
2014-03-31 698.92 -8.96 64.31
2013-12-31 702.99 2.12 65.00
2013-09-30 683.98 52.82 64.93
2013-06-30 669.25 58.34 62.94
2013-03-31 658.08 58.60 62.02
2012-12-31 647.15 59.83 60.62
2012-09-30 643.17 12.44 58.38
2012-06-30 625.74 7.42 57.89
2012-03-31 608.09 8.00 55.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RadNet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RadNet used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • It is difficult to establish if RadNet improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess RadNet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RadNet has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RDNT Health

 How is RadNet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RadNet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RadNet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RadNet's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of RadNet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RadNet Company Filings, last reported 4 months ago.

NasdaqGM:RDNT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 121.29 586.34 33.18
2018-06-30 124.93 594.89 16.25
2018-03-31 116.37 603.98 35.04
2017-12-31 69.93 609.13 51.32
2017-09-30 73.96 617.95 8.47
2017-06-30 63.65 628.97 12.71
2017-03-31 53.11 635.85 8.29
2016-12-31 52.05 638.73 21.46
2016-09-30 40.35 648.40 0.36
2016-06-30 36.97 637.01 0.43
2016-03-31 37.53 647.89 0.41
2015-12-31 36.46 638.72 0.45
2015-09-30 26.34 646.32 36.05
2015-06-30 12.18 646.65 5.32
2015-03-31 6.54 600.51 0.15
2014-12-31 7.70 597.61 0.31
2014-09-30 2.62 613.86 0.27
2014-06-30 -2.76 612.52 0.83
2014-03-31 -9.32 624.84 0.29
2013-12-31 2.21 581.63 8.41
2013-09-30 0.36 584.51 0.27
2013-06-30 4.94 583.75 0.25
2013-03-31 1.61 584.01 0.43
2012-12-31 -6.68 582.41 0.36
2012-09-30 -59.25 552.10 0.39
2012-06-30 -64.96 556.27 0.23
2012-03-31 -68.53 561.09 1.83
  • RadNet's level of debt (483.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (152968.1% vs 483.4% today).
  • Debt is well covered by operating cash flow (26.3%, greater than 20% of total debt).
  • RadNet is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess RadNet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RadNet has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RDNT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from RadNet dividends.
If you bought $2,000 of RadNet shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate RadNet's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate RadNet's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:RDNT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:RDNT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as RadNet has not reported any payouts.
  • Unable to verify if RadNet's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of RadNet's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as RadNet has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RadNet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RadNet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RadNet has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RDNT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Howard Berger
COMPENSATION $1,910,570
AGE 72
TENURE AS CEO 32.1 years
CEO Bio

Dr. Howard G. Berger, M.D., serves as the President and Chief Financial Officer of Image Medical Corporation. Dr. Berger has been the Chief Executive Officer and President at RadNet, Inc. and its predecessor entities since 1987 and serves as its Treasurer. Dr. Berger serves as the President of Progressive X-Ray of Englewood, LLC, Progressive Medical Imaging Of Hackensack, LLC, Progressive Medical Imaging Of Bloomfield, LLC, Progressive X-Ray Of Kearney LLC, Progressive Medical Imaging of Union City, LLC, Imaging On Call, LLC, Advanced Na, LLC, Advanced Radiology, LLC, East Bergen Imaging, LLC, Radiologix, Inc., and New Jersey Imaging Partners, Inc. He serves as the President at Radnet Management, Inc. and Radnet Managed Imaging Services, Inc. Dr. Berger has over 25 years of experience in the development and management of healthcare businesses. Dr. Berger served as the Chief Financial Officer at RadNet, Inc. since 1987. He serves as the Chairman at RadNet, Inc. Dr. Berger is also the president or co-president of the entities that own Beverly Radiology Medical Group, or BRMG. He has been a Director of Diagnostic Imaging Services Inc. since March 1996 and RadNet, Inc. since July 1992. Dr. Berger received his Medical Degree from the University Of Illinois Medical School and is Board certified in Nuclear Medicine and trained in an Internal Medicine residency, as well as in a Masters program in Medical Physics in the University of California system.

CEO Compensation
  • Howard's compensation has increased whilst company is loss making.
  • Howard's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the RadNet management team in years:

12.3
Average Tenure
59.5
Average Age
  • The average tenure for the RadNet management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Howard Berger

TITLE
Chairman
COMPENSATION
$2M
AGE
72
TENURE
32.1 yrs

Mark Stolper

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
47
TENURE
14.6 yrs

Norman Hames

TITLE
President
COMPENSATION
$1M
AGE
62
TENURE
23.1 yrs

Stephen Forthuber

TITLE
President & COO of Eastern Operations
COMPENSATION
$1M
AGE
57
TENURE
12.3 yrs

Ranjan Jayanathan

TITLE
Chief Information Officer & GM of Radiology Information Technology Division

Laura Foster

TITLE
Senior Vice President of Compliance & Regulatory Affairs
TENURE
1.9 yrs

Ruth Wilson

TITLE
Vice President of Human Resources
TENURE
2.2 yrs

Michael Murdock

TITLE
Executive VP & Chief Development Officer
AGE
63
TENURE
12.1 yrs

Derek Bomar

TITLE
Senior VP & Director of Materials & Asset Management
AGE
50
TENURE
16.1 yrs

Terri Herrick

TITLE
Senior Vice President of Contracting & Network Strategy
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the RadNet board of directors in years:

13.1
Average Tenure
72
Average Age
  • The average tenure for the RadNet board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Howard Berger

TITLE
Chairman
COMPENSATION
$2M
AGE
72

Norman Hames

TITLE
President
COMPENSATION
$1M
AGE
62
TENURE
23.1 yrs

John Crues

TITLE
VP, Medical Director & Director
COMPENSATION
$556K
AGE
68
TENURE
19.1 yrs

David Swartz

TITLE
Lead Independent Director
COMPENSATION
$221K
AGE
57
TENURE
8.1 yrs

Larry Levitt

TITLE
Director
COMPENSATION
$201K
AGE
75
TENURE
14.1 yrs

Michael Sherman

TITLE
Director
COMPENSATION
$194K
AGE
75
TENURE
12.1 yrs

Marvin Cadwell

TITLE
Director
COMPENSATION
$192K
AGE
74
TENURE
12.1 yrs
Who owns this company?
Recent Insider Trading
  • RadNet insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Dec 18 Sell Norman Hames Individual 19. Dec 18 20. Dec 18 -25,000 $10.78 $-263,800
14. Dec 18 Sell Norman Hames Individual 10. Dec 18 13. Dec 18 -20,000 $12.68 $-251,950
21. Sep 18 Sell Norman Hames Individual 20. Sep 18 20. Sep 18 -14,000 $15.59 $-218,260
19. Sep 18 Sell Norman Hames Individual 17. Sep 18 17. Sep 18 -10,000 $14.95 $-149,500
18. Sep 18 Sell John Crues Individual 18. Sep 18 18. Sep 18 -10,000 $15.30 $-153,000
17. Sep 18 Sell Jeffrey Linden Individual 17. Sep 18 17. Sep 18 -10,000 $14.78 $-147,800
21. Aug 18 Sell Norman Hames Individual 20. Aug 18 20. Aug 18 -10,000 $14.06 $-140,600
20. Jun 18 Sell Norman Hames Individual 19. Jun 18 19. Jun 18 -10,623 $14.17 $-150,528
15. Jun 18 Sell Norman Hames Individual 13. Jun 18 13. Jun 18 -10,000 $13.61 $-136,100
11. Jun 18 Sell Jeffrey Linden Individual 11. Jun 18 11. Jun 18 -10,000 $12.97 $-129,700
08. Jun 18 Sell Norman Hames Individual 08. Jun 18 08. Jun 18 -10,000 $12.81 $-128,100
30. May 18 Sell Norman Hames Individual 25. May 18 25. May 18 -15,000 $12.77 $-191,550
21. May 18 Sell Norman Hames Individual 18. May 18 18. May 18 -15,000 $13.10 $-195,645
14. May 18 Sell John Crues Individual 11. May 18 11. May 18 -15,000 $13.08 $-195,071
20. Mar 18 Sell Mark Stolper Individual 20. Mar 18 20. Mar 18 -15,000 $13.19 $-197,850
16. Mar 18 Sell Norman Hames Individual 13. Mar 18 16. Mar 18 -40,000 $13.10 $-517,900
14. Mar 18 Sell Michael Murdock Individual 14. Mar 18 14. Mar 18 -38,333 $13.06 $-500,629
14. Mar 18 Sell Jeffrey Linden Individual 14. Mar 18 14. Mar 18 -10,000 $13.09 $-130,900
14. Mar 18 Sell Marvin Cadwell Individual 13. Mar 18 13. Mar 18 -35,594 $12.58 $-447,773
X
Management checks
We assess RadNet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RadNet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RDNT News

Simply Wall St News

RadNet Inc (NASDAQ:RDNT): Assessing Capital Returns

and want to better understand how you can grow your money by investing in RadNet Inc (NASDAQ:RDNT). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in RadNet, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

RadNet Inc (NASDAQ:RDNT): Why Return On Capital Employed Is Important

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand RadNet’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Should You Buy RadNet Inc (NASDAQ:RDNT)?

saw a decent share price growth in the teens level on the NasdaqGM over the last few months. … Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value.

Simply Wall St -

Investors Are Undervaluing RadNet Inc (NASDAQ:RDNT) By 38.38%

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What Do Expectations Tell Us About RadNet Inc's (NASDAQ:RDNT) Margins In The Years Ahead?

Margin Calculation for RDNT Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 53.00 Killion ÷ 922.19 Million = 0.0057% There has been a contraction in RadNet's margin over the past five years, due to a positive 7.79% average growth in revenue and decline in net income of -11.28% on average, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … Margins are expected to move from contraction into expansion, with 4.15% in expected annual revenue growth and 71.75% earnings growth expected annually. … For RDNT, future profit margin is expected to expand simultaneously with Healthcare industry margins, whilst at the same time, RDNT’s forecasted ROE of 22.90% exceeds that of the expected 13.12% ROE of the industry (note that this observation is also influenced by relative debt levels).

Simply Wall St -

Investors Are Undervaluing RadNet Inc (NASDAQ:RDNT) By 30%

Today, I will calculate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $54.21 $70.80 $76.37 $82.38 $88.86 Source Analyst x3 Analyst x3 Extrapolated @ (7.87%) Extrapolated @ (7.87%) Extrapolated @ (7.87%) Present Value Discounted @ 11.47% $48.63 $56.98 $55.14 $53.36 $51.64 Present Value of 5-year Cash Flow (PVCF)= $266 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $89 × (1 + 2.5%) ÷ (11.5% – 2.5%) = $1,012 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,012 / ( 1 + 11.5%)5 = $588 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $854.

Simply Wall St -

Was RadNet Inc's (NASDAQ:RDNT) Earnings Growth Better Than The Industry's?

After reading RadNet Inc's (NASDAQ:RDNT) latest earnings update (30 September 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … View our latest analysis for RadNet Did RDNT's recent earnings growth beat the long-term trend and the industry? … Given that these figures are relatively nearsighted, I’ve calculated an annualized five-year value for RDNT's earnings, which stands at US$12.96M This suggests that, while earnings growth from last year was positive, over the long run, RadNet's earnings have been declining on average.

Simply Wall St -

Did RadNet Inc (NASDAQ:RDNT) Create Value For Shareholders?

See our latest analysis for RadNet Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of RadNet’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of RadNet’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGM:RDNT Last Perf Feb 26th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Is RadNet Inc (NASDAQ:RDNT) A Financially Sound Company?

At this stable level of debt, the current cash and short-term investment levels stands at US$21.46M , ready to deploy into the business. … Moreover, RDNT has produced US$91.64M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 14.35%, indicating that RDNT’s debt is not appropriately covered by operating cash. … For RDNT, the ratio of 1.21x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt.Next Steps: RDNT’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

Is RadNet Inc (NASDAQ:RDNT) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RDNT Price per share = $10 Earnings per share = $0.23 ∴ Price-Earnings Ratio = $10 ÷ $0.23 = 43.6x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing riskier firms with RDNT, then RDNT’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price. … If this assumption does not hold true, RDNT’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Simply Wall St -

RDNT Company Info

Map
Description

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems for the imaging industry, including picture archiving communications systems; and provides teleradiology services for remote interpretation of images on behalf of radiology groups, hospitals, and imaging center customers. As of December 31, 2017, it operated 297 facilities directly or indirectly through joint ventures with hospitals in California, Delaware, Florida, Maryland, New Jersey, and New York. The company was founded in 1981 and is headquartered in Los Angeles, California.

Details
Name: RadNet, Inc.
RDNT
Exchange: NasdaqGM
Founded: 1981
$668,493,514
48,866,485
Website: http://www.radnet.com
Address: RadNet, Inc.
1508, 1510 and 1516 Cotner Avenue,
Los Angeles,
California, 90025,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM RDNT Common Stock Nasdaq Global Market US USD 19. Oct 1990
DB PQIA Common Stock Deutsche Boerse AG DE EUR 19. Oct 1990
Number of employees
Current staff
Staff numbers
5,672
RadNet employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/14 00:17
End of day share price update: 2019/02/13 00:00
Last estimates confirmation: 2019/01/18
Last earnings filing: 2018/11/09
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.