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RDWR

Radware NasdaqGS:RDWR Stock Report

Last Price

US$21.92

Market Cap

US$1.0b

7D

-0.4%

1Y

-29.3%

Updated

28 Jun, 2022

Data

Company Financials +
RDWR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends0/6

RDWR Stock Overview

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for applications in cloud, physical, and software defined data centers worldwide.

Radware Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Radware
Historical stock prices
Current Share PriceUS$21.92
52 Week HighUS$42.19
52 Week LowUS$20.82
Beta1.07
1 Month Change-12.11%
3 Month Change-32.24%
1 Year Change-29.29%
3 Year Change-11.33%
5 Year Change24.76%
Change since IPO59.42%

Recent News & Updates

Shareholder Returns

RDWRUS CommunicationsUS Market
7D-0.4%-1.2%1.7%
1Y-29.3%-17.0%-20.4%

Return vs Industry: RDWR underperformed the US Communications industry which returned -15.5% over the past year.

Return vs Market: RDWR underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is RDWR's price volatile compared to industry and market?
RDWR volatility
RDWR Average Weekly Movement5.0%
Communications Industry Average Movement8.2%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: RDWR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RDWR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,075Roy Zisapelhttps://www.radware.com

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for applications in cloud, physical, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack mitigation device; AppWall, a Web application firewall; Radware Kubernetes WAF, a Web application firewall solution for CI/CD environments orchestrated by Kubernetes; and DefenseFlow, a cyber-command and control application. It also provides Alteon, an application delivery controller/load balancer for web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications.

Radware Fundamentals Summary

How do Radware's earnings and revenue compare to its market cap?
RDWR fundamental statistics
Market CapUS$1.00b
Earnings (TTM)US$7.68m
Revenue (TTM)US$293.44m

128.1x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDWR income statement (TTM)
RevenueUS$293.44m
Cost of RevenueUS$53.12m
Gross ProfitUS$240.31m
Other ExpensesUS$232.64m
EarningsUS$7.68m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin81.90%
Net Profit Margin2.62%
Debt/Equity Ratio0%

How did RDWR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RDWR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RDWR?

Other financial metrics that can be useful for relative valuation.

RDWR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA23.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does RDWR's PE Ratio compare to its peers?

RDWR PE Ratio vs Peers
The above table shows the PE ratio for RDWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average41.6x
HLIT Harmonic
50.3x73.9%US$916.4m
DGII Digi International
69.4x78.7%US$851.9m
EXTR Extreme Networks
24.8xn/aUS$1.2b
AUDC AudioCodes
21.7x17.3%US$718.1m
RDWR Radware
128.1xn/aUS$1.0b

Price-To-Earnings vs Peers: RDWR is expensive based on its Price-To-Earnings Ratio (128.1x) compared to the peer average (41.6x).


Price to Earnings Ratio vs Industry

How does RDWR's PE Ratio compare vs other companies in the US Communications Industry?

Price-To-Earnings vs Industry: RDWR is expensive based on its Price-To-Earnings Ratio (128.1x) compared to the US Communications industry average (22.2x)


Price to Earnings Ratio vs Fair Ratio

What is RDWR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RDWR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio128.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RDWR's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of RDWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RDWR ($21.92) is trading below our estimate of fair value ($36.9)

Significantly Below Fair Value: RDWR is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RDWR's PEG Ratio to determine if it is good value.


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Future Growth

How is Radware forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RDWR's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if RDWR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if RDWR's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RDWR's revenue (9.1% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: RDWR's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RDWR's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Radware performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


38.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RDWR has high quality earnings.

Growing Profit Margin: RDWR's current net profit margins (2.6%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: RDWR has become profitable over the past 5 years, growing earnings by 38.2% per year.

Accelerating Growth: RDWR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDWR had negative earnings growth (-30%) over the past year, making it difficult to compare to the Communications industry average (35.7%).


Return on Equity

High ROE: RDWR's Return on Equity (2.2%) is considered low.


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Financial Health

How is Radware's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RDWR's short term assets ($260.3M) exceed its short term liabilities ($151.7M).

Long Term Liabilities: RDWR's short term assets ($260.3M) exceed its long term liabilities ($113.7M).


Debt to Equity History and Analysis

Debt Level: RDWR is debt free.

Reducing Debt: RDWR has not had any debt for past 5 years.

Debt Coverage: RDWR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RDWR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Radware current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RDWR has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.9yrs

Average management tenure


CEO

Roy Zisapel (50 yo)

26.08yrs

Tenure

US$1,205,000

Compensation

Mr. Roy Zisapel has been President, Chief Executive Officer and Director of Radware Ltd. since its inception in May 1996. He serves as Chief Executive Officer of Radware Canada Holdings Inc. Before foundin...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD1.21M) is below average for companies of similar size in the US market ($USD4.00M).

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


Leadership Team

Experienced Management: RDWR's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: RDWR's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Radware Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Radware Ltd.
  • Ticker: RDWR
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$1.003b
  • Shares outstanding: 44.84m
  • Website: https://www.radware.com

Number of Employees


Location

  • Radware Ltd.
  • 22 Raoul Wallenberg Street
  • Tel Aviv
  • 6971917
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.