NasdaqGM:RDNT

Stock Analysis Report

Executive Summary

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States.

Rewards

Trading at 17.8% below its fair value

Earnings are forecast to grow 20.61% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has RadNet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

RDNT

-0.002%

US Healthcare

-0.3%

US Market


1 Year Return

56.3%

RDNT

4.7%

US Healthcare

18.6%

US Market

Return vs Industry: RDNT exceeded the US Healthcare industry which returned 4.7% over the past year.

Return vs Market: RDNT exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

RDNTIndustryMarket
7 Day2.8%-0.002%-0.3%
30 Day21.2%8.7%2.2%
90 Day42.1%18.0%5.6%
1 Year56.3%56.3%6.4%4.7%21.1%18.6%
3 Year215.0%215.0%48.8%42.2%45.6%36.2%
5 Year129.9%129.9%71.9%60.3%71.1%52.2%

Price Volatility Vs. Market

How volatile is RadNet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RadNet undervalued compared to its fair value and its price relative to the market?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDNT ($19.69) is trading below our estimate of fair value ($23.95)

Significantly Below Fair Value: RDNT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RDNT is poor value based on its PE Ratio (29x) compared to the Healthcare industry average (22.3x).

PE vs Market: RDNT is poor value based on its PE Ratio (29x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: RDNT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: RDNT is overvalued based on its PB Ratio (7.3x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

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

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDNT's forecast earnings growth (20.6% per year) is above the savings rate (1.7%).

Earnings vs Market: RDNT's earnings (20.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RDNT's revenue (4.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: RDNT's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDNT's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has RadNet performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDNT has a large one-off gain of $31.6M impacting its September 30 2019 financial results.

Growing Profit Margin: RDNT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RDNT has become profitable over the past 5 years, growing earnings by 34.3% per year.

Accelerating Growth: RDNT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RDNT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (6.2%).


Return on Equity

High ROE: RDNT's Return on Equity (19.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RadNet's financial position?


Financial Position Analysis

Short Term Liabilities: RDNT's short term assets ($239.7M) do not cover its short term liabilities ($309.5M).

Long Term Liabilities: RDNT's short term assets ($239.7M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: RDNT's debt to equity ratio (326.6%) is considered high.

Reducing Debt: RDNT's debt to equity ratio has reduced from 22460.5% to 326.6% over the past 5 years.

Debt Coverage: RDNT's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: RDNT's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: RDNT has a high level of physical assets or inventory.

Debt Coverage by Assets: RDNT's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RDNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RDNT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDNT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDNT'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 RadNet's salary, the management and board of directors tenure and is there insider trading?

12.9yrs

Average management tenure


CEO

Howard Berger (73yo)

32.9yrs

Tenure

US$1,910,570

Compensation

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 predecess ...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Howard's compensation has been consistent with company performance over the past year.


Management Age and Tenure

12.9yrs

Average Tenure

58yo

Average Age

Experienced Management: RDNT's management team is seasoned and experienced (12.9 years average tenure).


Board Age and Tenure

12.9yrs

Average Tenure

73yo

Average Age

Experienced Board: RDNT's board of directors are seasoned and experienced ( 12.9 years average tenure).


Insider Trading

Insider Buying: RDNT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$360,20018 Nov 19
John Crues
EntityIndividual
Role
Member of the Board of Directors
VP, Medical Director & Director
Shares20,000
Max PriceUS$18.01
SellUS$672,40015 Nov 19
John Crues
EntityIndividual
Role
Member of the Board of Directors
VP, Medical Director & Director
Shares40,000
Max PriceUS$17.78
SellUS$455,70021 Aug 19
Michael Sherman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$15.19
SellUS$313,65016 Aug 19
Mark Stolper
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares20,703
Max PriceUS$15.15
SellUS$753,50014 Aug 19
John Crues
EntityIndividual
Role
Member of the Board of Directors
VP, Medical Director & Director
Shares50,000
Max PriceUS$15.07
SellUS$261,80024 Jun 19
Norman Hames
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares20,000
Max PriceUS$13.21
SellUS$286,65414 Jun 19
Michael Murdock
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Development Officer
Shares21,667
Max PriceUS$13.23
SellUS$263,00021 May 19
John Crues
EntityIndividual
Role
Member of the Board of Directors
VP, Medical Director & Director
Shares20,000
Max PriceUS$13.15
SellUS$170,10422 Mar 19
David Swartz
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares11,556
Max PriceUS$14.72
SellUS$277,80022 Mar 19
Michael Sherman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$13.89
SellUS$224,89520 Mar 19
Mark Stolper
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceUS$14.99
SellUS$263,80021 Dec 18
Norman Hames
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares25,000
Max PriceUS$10.78
SellUS$251,95014 Dec 18
Norman Hames
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares20,000
Max PriceUS$12.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Management Team

  • Howard Berger (73yo)

    Chairman

    • Tenure: 32.9yrs
    • Compensation: US$1.91m
  • Norman Hames (63yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$1.17m
  • Mark Stolper (48yo)

    Executive VP & CFO

    • Tenure: 15.4yrs
    • Compensation: US$1.11m
  • Michael Murdock (64yo)

    Executive VP & Chief Development Officer

    • Tenure: 12.9yrs
  • Stephen Forthuber (58yo)

    President & COO of Eastern Operations

    • Tenure: 2.6yrs
    • Compensation: US$1.18m
  • Ranjan Jayanathan

    Chief Information Officer & GM of Radiology Information Technology Division

    • Tenure: 0yrs
  • Derek Bomar (51yo)

    Senior VP & Director of Materials & Asset Management

    • Tenure: 16.9yrs
  • Ruth Wilson (56yo)

    Senior VP of Human Resources & Director

    • Tenure: 0.3yrs
  • Laura Foster

    Senior Vice President of Compliance & Regulatory Affairs

    • Tenure: 2.8yrs
  • Deborah Saly

    Senior VP & Deputy General Counsel

    • Tenure: 0yrs

Board Members

  • Howard Berger (73yo)

    Chairman

    • Tenure: 32.9yrs
    • Compensation: US$1.91m
  • John Crues (69yo)

    VP, Medical Director & Director

    • Tenure: 19.9yrs
    • Compensation: US$555.87k
  • Michael Sherman (76yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$193.50k
  • Marvin Cadwell (75yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$191.50k
  • David Swartz (58yo)

    Lead Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$220.50k
  • Larry Levitt (76yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$200.50k
  • Ruth Wilson (56yo)

    Senior VP of Human Resources & Director

    • Tenure: 0.3yrs

Company Information

RadNet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RadNet, Inc.
  • Ticker: RDNT
  • Exchange: NasdaqGM
  • Founded: 1985
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$1.021b
  • Shares outstanding: 50.27m
  • Website: https://www.radnet.com

Number of Employees


Location

  • RadNet, Inc.
  • 1508, 1510 and 1516 Cotner Avenue
  • Los Angeles
  • California
  • 90025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDNTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 1990
PQIADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1990

Biography

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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:03
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.