NasdaqGS:RDWR

Stock Analysis Report

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Executive Summary

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RDWR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RDWR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

RDWR

1.7%

US Communications

0.6%

US Market


1 Year Return

5.8%

RDWR

-0.6%

US Communications

22.7%

US Market

Return vs Industry: RDWR exceeded the US Communications industry which returned -2.5% over the past year.

Return vs Market: RDWR underperformed the US Market which returned 21% over the past year.


Shareholder returns

RDWRIndustryMarket
7 Day-1.0%1.7%0.6%
30 Day13.3%19.2%13.1%
90 Day-2.5%1.8%4.5%
1 Year5.8%5.8%2.2%-0.6%25.5%22.7%
3 Year24.5%24.5%18.7%10.4%49.0%39.1%
5 Year61.5%61.5%61.9%43.4%98.3%76.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

83.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RDWR ($25.49) is trading above our estimate of fair value ($21.3)

Significantly Below Fair Value: RDWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDWR is poor value based on its PE Ratio (83.9x) compared to the US Communications industry average (36.9x).

PE vs Market: RDWR is poor value based on its PE Ratio (83.9x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: RDWR is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: RDWR is overvalued based on its PB Ratio (3.1x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Radware forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDWR's forecast earnings growth (23.5% per year) is above the savings rate (2.2%).

Earnings vs Market: RDWR's earnings (23.5% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: RDWR's revenue (6.5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: RDWR's revenue (6.5% 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


Next Steps

Past Performance

How has Radware performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDWR has high quality earnings.

Growing Profit Margin: RDWR's current net profit margins (5.7%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: RDWR's earnings have grown significantly by 27.4% per year over the past 5 years.

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 (-38.9%) over the past year, making it difficult to compare to the Communications industry average (-4.9%).


Return on Equity

High ROE: RDWR's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Radware's financial position?


Financial Position Analysis

Short Term Liabilities: RDWR's short term assets ($326.8M) exceed its short term liabilities ($135.7M).

Long Term Liabilities: RDWR's short term assets ($326.8M) exceed its long term liabilities ($87.6M).


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


Next Steps

Dividend

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


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.


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 RDWR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Roy Zisapel (49 yo)

24.5yrs

Tenure

US$2,725,000

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 at Radware Canada Holdings Inc. Before foundi...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD2.73M) is about average for companies of similar size in the US market ($USD2.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roy Zisapel
Co-Founder24.5yrsUS$2.73m2.94%
$ 34.6m
Doron Abramovitch
Chief Financial Officer5.17yrsUS$765.00kno data
Gabi Malka
Chief Operating Officer6.67yrsUS$657.00kno data
Raphael Kesten
Chief Business Officer1.42yrsUS$1.50mno data
Yehuda Zisapel
Co-Founder & Chairman11yrsno data9.82%
$ 115.6m
David Aviv
CTO & VP of Advanced Services4.83yrsUS$491.00kno data
Anat Earon-Heilborn
Vice President of Investor Relationsno datano datano data
Hannah Mordechai
VP & General Counsel1.25yrsno datano data
Anna Convery-Pelletier
Chief Marketing Officer3.92yrsUS$908.00kno data
Riki Goldreich
Vice President of Global Human Resourcesno datano datano data
Sharon Trachtman
Chief Business Operation Officer3.92yrsno datano data

4.4yrs

Average Tenure

53yo

Average Age

Experienced Management: RDWR's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Zisapel
Co-Founder24.5yrsUS$2.73m2.94%
$ 34.6m
Yehuda Zisapel
Co-Founder & Chairman11yrsno data9.82%
$ 115.6m
Stanley Stern
Independent Director0.17yrno datano data
Yael Langer
Director11.33yrsno datano data
David Rubner
Independent Director11.08yrsno datano data
Naama Zeldis
Independent Director0.17yrno datano data
Yair Tauman
Independent Director10.08yrsno datano data
Gabriel Seligsohn
Independent Director0.50yrno datano data

10.5yrs

Average Tenure

60yo

Average Age

Experienced Board: RDWR's board of directors are seasoned and experienced ( 10.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Radware Ltd.
  • Ticker: RDWR
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$1.177b
  • Shares outstanding: 46.16m
  • Website: https://www.radware.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDWRNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDSep 1999
RWADB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1999

Biography

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The company off...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:18
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.