Radian Group Inc. (RDN) 10-Year Financial Performance & Capital Metrics

RDN • • Insurance & Managed Care

Financial ServicesSpecialty InsuranceMortgage InsurancePrivate Mortgage Insurers

AboutRadian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. Its Mortgage segment offers credit-related insurance coverage primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management, contract underwriting, and fulfillment solutions. This segment primarily serves mortgage originators, such as mortgage banks, commercial banks, savings institutions, credit unions, and community banks. The company's Homegenius segment offers title services, including a suite of insurance and non-insurance title, tax and title data, centralized recording, document retrieval and default curative title services, and deed and property reports, as well as closing and settlement services comprising electronic execution and traditional signing services; real estate valuation products and services; and asset management services, as well as a suite of real estate technology products and services to facilitate real estate transactions, such as software as a service solutions. This segment serves consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, and real estate brokers and agents. The company was founded in 1977 and is headquartered in Wayne, Pennsylvania.Show more

Revenue $1.29B +4.0%
Combined Ratio 40.24% +5.5%
Net Income $604M +0.2%
Return on Equity 13.4% -7.6%
Medical Cost Ratio 4.89% +195.1%
Operating Margin 59.76% -3.4%
Net Margin 46.83% -3.7%
ROA 7.44% -9.6%
Equity / Assets 53.37% -7.8%
Book Value per Share 29.99 +9.2%
Tangible BV/Share 29.74 +8.3%
Debt/Equity 0.51 +41.0%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Profitable underwriting: 40.2% combined ratio
✓10 consecutive years of dividend growth
✓Low loss ratio of 4.9%
✓Good 3Y average ROE of 15.4%
✓Healthy dividend yield of 3.0%
✓Share count reduced 3.7% through buybacks

✗Weaknesses

✗Weak Piotroski F-Score: 3/9

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.87%

5Y-3.31%

3Y-0.97%

TTM-1.81%

Profit (Net Income) CAGR

10Y-4.52%

5Y-2.11%

3Y0.21%

TTM-3.8%

EPS CAGR

10Y-0.45%

5Y4.14%

3Y7.45%

TTM-21.48%

ROCE

10Y Avg10.04%

5Y Avg10.65%

3Y Avg12.06%

Latest10.34%

Peer Comparison

Private Mortgage Insurers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MTGMGIC Investment Corporation	5.86B	26.20	9.07	4.56%	61.96%	14.57%	12.35%	0.12
ESNTEssent Group Ltd.	5.91B	61.13	8.92	12.03%	53.73%	12.25%	14.47%	0.09
ACTEnact Holdings, Inc.	5.58B	38.66	8.85	4.18%	53.87%	12.41%	12.29%	0.15
NMIHNMI Holdings, Inc.	2.89B	37.62	8.49	12.43%	55.02%	15.14%	13.37%	0.19
RDNRadian Group Inc.	4.46B	32.95	8.41	4.04%	45.61%	12.38%		0.51

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	1.19B	1.24B	1.22B	1.27B	1.53B	1.44B	1.33B	1.19B	1.24B	1.29B
Revenue Growth %	0.11%	0.04%	-0.01%	0.04%	0.2%	-0.06%	-0.08%	-0.1%	0.04%	0.04%
Medical Costs & Claims+	314.72M	340.44M	264.03M	228.03M	265.67M	602.17M	153.62M	-231.96M	20.54M	63.07M
Medical Cost Ratio %	-	-	-	-	-	-	-	-	-	-
Gross Profit+	878.53M	898.01M	957.6M	1.04B	1.26B	837.7M	1.18B	1.42B	1.22B	1.23B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.16%	0.02%	0.07%	0.09%	0.21%	-0.34%	0.4%	0.21%	-0.14%	0.01%
Operating Expenses+	440.7M	414.32M	610.86M	360.79M	412.29M	358.26M	410.56M	469.91M	452.56M	456.29M
OpEx / Revenue %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization	81.63M	71.02M	85.83M	69.09M	72.73M	71.73M	75.47M	76.58M	88.92M	78.75M
Combined Ratio %	-	-	-	-	-	-	-	-	-	-
Operating Income+	437.83M	483.69M	346.74M	684.19M	848.99M	479.44M	764.83M	952.78M	767.49M	771.29M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.08%	0.1%	-0.28%	0.97%	0.24%	-0.44%	0.6%	0.25%	-0.19%	0%
EBITDA+	519.45M	554.7M	432.57M	753.28M	921.72M	551.17M	840.3M	1.03B	856.4M	850.04M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense	91.1M	81.13M	62.76M	61.49M	56.31M	71.15M	84.46M	84.45M	89.69M	103.74M
Non-Operating Income	-91.1M	-81.13M	-62.76M	-61.49M	-56.31M	-71.15M	-84.46M	-84.45M	-89.69M	-103.74M
Pretax Income+	437.83M	483.69M	346.74M	684.19M	848.99M	479.44M	764.83M	952.78M	767.49M	771.29M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	156.29M	175.43M	225.65M	78.17M	176.68M	85.81M	164.16M	209.84M	164.37M	166.85M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	286.92M	308.25M	121.09M	606.01M	672.31M	393.63M	600.67M	742.93M	603.12M	604.44M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.7%	0.07%	-0.61%	4%	0.11%	-0.41%	0.53%	0.24%	-0.19%	0%
EPS (Diluted)+	1.22	1.37	0.55	2.77	3.20	2.00	3.16	4.35	3.77	3.92
EPS Growth %	-0.7%	0.12%	-0.6%	4.04%	0.16%	-0.38%	0.58%	0.38%	-0.13%	0.04%
EPS (Basic)	1.44	1.46	0.56	2.83	3.22	2.01	3.19	4.42	3.81	3.96
Diluted Shares Outstanding	246.33M	229.26M	220.41M	218.55M	210.34M	196.64M	190.26M	170.66M	160.13M	154.19M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	5.64B	5.86B	5.9B	6.31B	6.81B	7.95B	7.84B	7.06B	7.59B	8.66B
Asset Growth %	-0.18%	0.04%	0.01%	0.07%	0.08%	0.17%	-0.01%	-0.1%	0.08%	0.14%
Total Investment Assets+	3.02B	3.58B	3.87B	4.55B	5.21B	6.34B	6.07B	5.42B	5.85B	5.6B
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Short-Term Investments	3.02B	3.58B	3.87B	4.55B	5.21B	6.34B	6.07B	5.42B	5.85B	5.6B
Total Current Assets+	3.18B	3.95B	4.42B	5.2B	5.91B	7.1B	6.97B	6.36B	6.87B	6.79B
Cash & Equivalents	46.9M	52.15M	80.57M	95.39M	92.73M	87.92M	151.15M	56.18M	19M	38.82M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	0	0	0	0	0	0	0	0
Goodwill & Intangibles+	289.42M	276.23M	112.96M	110.36M	28.19M	23.04M	19.59M	15.29M	0	38.21M
Goodwill	195.17M	195.17M	10.92M	14.09M	9.8M	9.8M	9.8M	9.8M	0	0
Intangible Assets	94.25M	81.06M	102.04M	96.27M	18.39M	13.24M	9.79M	5.48M	0	38.21M
PP&E (Net)	46.8M	70.67M	38.29M	37.09M	125.75M	113.44M	106.96M	92.08M	63.82M	27.64M
Other Assets	1.55B	1.16B	1.1B	835M	745.09M	709.25M	745.19M	597.14M	661.79M	1.8B
Total Liabilities	3.15B	2.99B	2.9B	2.83B	2.76B	3.66B	3.58B	3.14B	3.2B	4.04B
Total Debt+	1.22B	1.07B	1.03B	1.11B	1.02B	1.58B	1.56B	1.57B	1.58B	2.34B
Net Debt	1.17B	1.02B	946.5M	1.02B	929.26M	1.49B	1.41B	1.51B	1.56B	2.31B
Long-Term Debt	1.22B	1.07B	1.03B	1.11B	923.98M	1.45B	1.44B	984.25M	480.32M	2.27B
Short-Term Debt	0	0	0	0	98M	128.55M	124.05M	585.07M	1.06B	36.14M
Total Current Liabilities+	8.29M	164.85M	288.4M	321.21M	389.83M	407.11M	352.12M	737.14M	1.19B	158.13M
Accounts Payable	8.29M	6.85M	0	0	0	0	0	0	0	0
Deferred Revenue	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	158M	288.4M	321.21M	291.83M	278.56M	228.08M	152.07M	130.56M	98.69M
Deferred Taxes	0	0	0	0	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	1.92B	1.76B	1.5B	1.22B	1.37B	1.59B	1.45B	1.03B	874.09M	812.43M
Total Equity+	2.5B	2.87B	3B	3.49B	4.05B	4.28B	4.26B	3.92B	4.4B	4.62B
Equity Growth %	0.15%	0.15%	0.04%	0.16%	0.16%	0.06%	-0.01%	-0.08%	0.12%	0.05%
Shareholders Equity	2.5B	2.87B	3B	3.49B	4.05B	4.28B	4.26B	3.92B	4.4B	4.62B
Minority Interest	0	0	0	0	0	0	0	0	0	0
Retained Earnings	691.74M	997.89M	1.12B	1.72B	2.39B	2.68B	3.18B	3.79B	4.24B	4.7B
Common Stock	224K	232K	233K	231K	219K	210K	194K	176K	173K	168K
Accumulated OCI	-18.48M	-12.39M	23.09M	-60.92M	110.49M	263.73M	120.09M	-456.8M	-330.85M	-350.24M
Return on Equity (ROE)	0.12%	0.11%	0.04%	0.19%	0.18%	0.09%	0.14%	0.18%	0.15%	0.13%
Return on Assets (ROA)	0.05%	0.05%	0.02%	0.1%	0.1%	0.05%	0.08%	0.1%	0.08%	0.07%
Equity / Assets	-	-	-	-	-	-	-	-	-	-
Debt / Equity	0.49x	0.37x	0.34x	0.32x	0.25x	0.37x	0.37x	0.40x	0.36x	0.51x
Book Value per Share	10.14	12.53	13.61	15.96	19.25	21.79	22.38	22.97	27.46	29.99
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	11.72M	381.72M	360.57M	677.79M	694.43M	658.43M	557.11M	388.3M	529.43M	-663.57M
Operating CF Growth %	1.08%	31.57%	-0.06%	0.88%	0.02%	-0.05%	-0.15%	-0.3%	0.36%	-2.25%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	281.54M	308.25M	121.09M	606.01M	672.31M	393.63M	600.67M	742.93M	603.12M	0
Depreciation & Amortization	81.63M	71.02M	85.83M	69.09M	0	71.73M	75.47M	76.58M	79.11M	0
Stock-Based Compensation	0	0	0	0	21.41M	19.19M	28.44M	38.06M	41.13M	0
Deferred Taxes	156.17M	170.89M	166.53M	120.57M	157.16M	102.08M	161.79M	206.93M	165M	0
Other Non-Cash Items	45.51M	44.32M	232.22M	42.48M	27.16M	-79.47M	-44.05M	39.17M	-72.82M	-419.23M
Working Capital Changes	-551.08M	-212.76M	-245.1M	-160.36M	-183.61M	151.28M	-265.22M	-715.37M	-286.11M	-244.35M
Cash from Investing+	2.79M	-176.06M	-201.49M	-689.41M	-302.05M	-883.18M	-1.86M	-5.17M	-300.84M	327.75M
Capital Expenditures	-25.47M	-35.54M	-28.68M	-26.01M	-27.63M	-17.02M	-12.6M	-17.67M	-16.28M	0
Acquisitions	774.03M	-150K	-736K	-7.96M	0	16.48M	0	0	0	0
Purchase of Investments	-1.34B	-1.99B	-2.16B	-2.05B	-1.97B	-2.53B	-2.09B	-1.44B	-1.19B	0
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0
Other Investing	22.72M	2.49M	882K	2.59M	-739K	-90.45M	6.13M	-6.89M	-45K	327.75M
Cash from Financing+	601K	-203.27M	-125.08M	22.39M	-403.11M	222.62M	-496.78M	-479.18M	-265.09M	357.23M
Dividends Paid	-2M	-2.1M	-2.15M	-2.14M	-2.06M	-97.46M	-103.3M	-135.44M	-145.91M	-151.96M
Share Repurchases	-202M	-100.19M	-6K	-50.05M	-300.2M	-226.31M	-399.1M	-400.19M	-133.31M	-225.06M
Stock Issued	1.28M	717K	7.13M	1.39M	2.42M	1.55M	1.38M	1.34M	1.75M	928K
Debt Issuance (Net)	1000K	-1000K	-1000K	1000K	-1000K	1000K	1000K	1000K	1000K	1000K
Other Financing	17.43M	333K	21.57M	0	-989K	-2.29M	1.38M	-814K	-904K	-812K
Net Change in Cash+	15.4M	1.92M	34.43M	10.76M	-10.73M	-2.13M	58.47M	-96.06M	-36.49M	21.41M
Exchange Rate Effect	-133K	-481K	431K	0	-4K	0	0	0	0	0
Cash at Beginning	44.5M	59.9M	61.81M	96.24M	107M	96.27M	94.15M	152.62M	56.56M	20.07M
Cash at End	59.9M	61.81M	96.24M	107M	96.27M	94.15M	152.62M	56.56M	20.07M	41.47M
Free Cash Flow+	-13.74M	346.18M	331.9M	651.78M	666.8M	641.42M	544.51M	370.63M	513.15M	-666.75M
FCF Growth %	0.92%	26.19%	-0.04%	0.96%	0.02%	-0.04%	-0.15%	-0.32%	0.38%	-2.3%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF per Share	-0.06	1.51	1.51	2.98	3.17	3.26	2.86	2.17	3.2	-4.32

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	63.31%	60.94%	71.62%	46.25%	44.4%	66.7%	42.45%	19.98%	38.14%	40.24%
Medical Cost Ratio	26.38%	27.49%	21.61%	17.91%	17.4%	41.82%	11.56%	-19.48%	1.66%	4.89%
Return on Equity (ROE)	12.29%	11.48%	4.12%	18.68%	17.84%	9.45%	14.06%	18.17%	14.5%	13.4%
Return on Assets (ROA)	4.6%	5.36%	2.06%	9.92%	10.25%	5.33%	7.61%	9.97%	8.23%	7.44%
Equity / Assets	44.26%	48.99%	50.84%	55.25%	59.47%	53.9%	54.33%	55.49%	57.91%	53.37%
Book Value / Share	10.14	12.53	13.61	15.96	19.25	21.79	22.38	22.97	27.46	29.99
Debt / Equity	0.49x	0.37x	0.34x	0.32x	0.25x	0.37x	0.37x	0.40x	0.36x	0.51x
Revenue Growth	11.24%	3.79%	-1.36%	4.21%	19.95%	-5.7%	-7.7%	-10.41%	4.19%	4.04%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Mortgage Insurance	-	-	-	-	-	14.77M	17.67M	7.39M	1.11B	1.15B
Mortgage Insurance Growth	-	-	-	-	-	-	19.67%	-58.18%	14932.48%	3.28%
Real Estate	-	-	-	-	-	79.52M	108.28M	85.16M	57.64M	-
Real Estate Growth	-	-	-	-	-	-	36.16%	-21.36%	-32.31%	-
Mortgage and Real Estate Services	157.42M	177.25M	161.83M	148.22M	15.64M	94.29M	125.95M	92.55M	-	-
Mortgage and Real Estate Services Growth	-	12.60%	-8.70%	-8.41%	-89.45%	502.72%	33.58%	-26.52%	-	-
All Other activities segment	-	-	-	-	-	12.54M	154K	-	-	-
All Other activities segment Growth	-	-	-	-	-	-	-98.77%	-	-	-
Mortgage Insurance and Mortgage and Real Estate Servicess	157.42M	177.25M	161.83M	148.22M	-	-	-	-	-	-
Mortgage Insurance and Mortgage and Real Estate Servicess Growth	-	12.60%	-8.70%	-8.41%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Radian Group Inc. (RDN) has a price-to-earnings (P/E) ratio of 8.4x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Radian Group Inc. (RDN) grew revenue by 4.0% over the past year. Growth has been modest.

Yes, Radian Group Inc. (RDN) is profitable, generating $576.1M in net income for fiscal year 2024 (46.8% net margin).

Dividend & Returns

Yes, Radian Group Inc. (RDN) pays a dividend with a yield of 2.99%. This makes it attractive for income-focused investors.

Radian Group Inc. (RDN) has a return on equity (ROE) of 13.4%. This is reasonable for most industries.

Industry Metrics

Radian Group Inc. (RDN) has a combined ratio of 40.2%. A ratio below 100% indicates underwriting profitability.

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