-1.62%
7.25%
-2.55%
-8.30%
17.39%
51.94%
38.91%
AI Spotlight on RDN
Company Description
Radian 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.
Market Data
| Last Price | 34.02 |
| Change Percentage | -1.62% |
| Open | 34.43 |
| Previous Close | 34.58 |
| Market Cap ( Millions) | 5067 |
| Volume | 807860 |
| Year High | 37.86 |
| Year Low | 26.11 |
| M A 50 | 33.32 |
| M A 200 | 33.19 |
Financial Ratios
| FCF Yield | 5.19% |
| Dividend Yield | 2.88% |
| ROE | 13.29% |
| Debt / Equity | 7.34% |
| Net Debt / EBIDTA | -18.90% |
| Price To Book | 1.1 |
| Price Earnings Ratio | 8.63 |
| Price To FCF | 19.26 |
| Price To sales | 3.89 |
| EV / EBITDA | 10.76 |
News
- Jan -21 - RDN Stock Trades Below 50-Day SMA: What Should Investors Do?
- Jan -16 - Radian to Webcast Fourth Quarter Conference Call
- Jan -13 - Radian's Mortgage Insurance President Derek Brummer Announces Retirement
- Jan -09 - Morningstar DBRS Deems Radian Real Estate Management Acceptable Due Diligence Provider
- Jan -08 - Elizabeth Park Capital Management Names Financial Services Veteran J. Franklin Hall Partner and Deputy Portfolio Manager
- Dec -31 - The New Year May Not Be Kind To Radian Group
- Dec -20 - RDN Stock Trading at Discount to Industry at 1.02X: Time to Buy?
- Dec -19 - 5 Dividend-Paying Insurers Worth Watching for Steady Income in 2025
- Dec -17 - AGESY vs. RDN: Which Stock Is the Better Value Option?
- Nov -29 - 5 Multiline Insurers to Watch as Exposure Rises, Pricing Moderates
- Nov -13 - Radian Declares Regular Quarterly Dividend
- Nov -13 - R3 and Radian to modernize title transfer and insurance process
- Nov -08 - Radian (RDN) Upgraded to Buy: Here's What You Should Know
- Nov -08 - RDN or BBSEY: Which Is the Better Value Stock Right Now?
- Nov -07 - Radian Group Inc. (RDN) Q3 2024 Earnings Call Transcript
- Nov -07 - Radian Group Q3 Earnings Beat Estimates on Higher Revenues
- Nov -07 - Radian (RDN) Q3 Earnings Beat Estimates
- Nov -06 - Radian Announces Third Quarter 2024 Financial Results
- Nov -04 - Radian Exceeds Fundraising Goal for MBA Opens Doors Foundation with Record-Breaking Campaign
- Oct -29 - Positive Trial Data on Symplicity RDN System Likely to Support MDT Stock
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Mortgage
Expected Growth : 4.5 %
What the company do ?
Radian Group Inc. offers private mortgage insurance, which protects lenders from default risk, allowing homebuyers to purchase homes with lower down payments.
Why we expect these perspectives ?
Radian Group Inc.'s 4.5% mortgage growth is driven by increasing demand for housing, low interest rates, and government-backed mortgage insurance. Additionally, the company's expansion into new markets, improved operational efficiency, and strategic partnerships have contributed to its growth. Furthermore, the rising trend of homeownership among millennials and the growing need for mortgage refinancing have also fueled the company's mortgage business.
Segment n°2 -> All Other
Expected Growth : 3.8 %
What the company do ?
All Other from Radian Group Inc. refers to the remaining business segments not classified under Title, Insurance, or Mortgage segments, including financial guaranty and reinsurance operations.
Why we expect these perspectives ?
Radian Group Inc.'s 'All Other' segment growth of 3.8% is driven by increasing demand for title insurance and valuation services, expansion of its mortgage and real estate services, and strategic investments in emerging technologies. Additionally, the segment benefits from a diversified revenue stream, cost savings initiatives, and a strong capital position.
Segment n°3 -> Homegenius
Expected Growth : 6.2 %
What the company do ?
Homegenius is a digital mortgage and real estate platform from Radian Group Inc. that provides data-driven insights and solutions for homeowners, buyers, and industry professionals.
Why we expect these perspectives ?
Homegenius' 6.2% growth is driven by increasing demand for digital mortgage solutions, expansion of Radian's title insurance and valuation services, and strategic partnerships. Additionally, the shift towards online real estate transactions, growing need for efficient mortgage processing, and rising adoption of AI-powered valuation models contribute to the segment's growth.
Segment n°4 -> Adjustments
Expected Growth : 0.5 %
What the company do ?
Adjustments from Radian Group Inc. refer to the changes made to the company's financial statements to reflect the fair value of its assets and liabilities.
Why we expect these perspectives ?
Radian Group Inc.'s 0.5 growth driven by increasing demand for mortgage insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on risk management and cost containment efforts have contributed to its growth. Furthermore, the low interest rate environment has also boosted refinancing activity, leading to increased revenue for the company.
Segment n°5 -> Inter-segment
Expected Growth : 2.1 %
What the company do ?
Inter-segment from Radian Group Inc. refers to the internal transactions and eliminations between its subsidiaries, including mortgage insurance, real estate, and other business segments.
Why we expect these perspectives ?
Radian Group Inc.'s 2.1% inter-segment growth is driven by increasing demand for mortgage insurance, expansion of its title insurance business, and growth in its real estate services segment. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic investments in emerging technologies have contributed to its growth.
Radian Group Inc. Products
| Product Range | What is it ? |
|---|---|
| Mortgage Insurance | Radian Group Inc. offers mortgage insurance to lenders and borrowers, providing protection against default and foreclosure. |
| Mortgage Guaranty Insurance | Radian provides mortgage guaranty insurance to lenders, guaranteeing repayment of mortgage loans in the event of default. |
| Title Insurance | Radian offers title insurance to protect homeowners and lenders from defects in title, ensuring clear ownership of a property. |
| Real Estate Services | Radian provides real estate services, including valuation, appraisal, and settlement services, to support the mortgage lending process. |
| Risk Management Services | Radian offers risk management services, including credit risk assessment and portfolio analytics, to help lenders manage risk. |
Radian Group Inc.'s Porter Forces
Threat Of Substitutes
Radian Group Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.
Bargaining Power Of Customers
Radian Group Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative products and services.
Bargaining Power Of Suppliers
Radian Group Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants is moderate due to the high barriers to entry in the industry, but Radian Group Inc. needs to continuously innovate to stay ahead of potential competitors.
Intensity Of Rivalry
The intensity of rivalry in the industry is high due to the presence of several established players, and Radian Group Inc. needs to focus on differentiating itself to maintain its market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 25.90% |
| Debt Cost | 7.22% |
| Equity Weight | 74.10% |
| Equity Cost | 9.06% |
| WACC | 8.58% |
| Leverage | 34.96% |
Radian Group Inc. : Quality Control
Radian Group Inc. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MTG | MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, Puerto … |
| FAF | First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance … |
| AIZ | Assurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company … |
| FNF | Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title … |
| NMIH | NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services to mortgage loan originators. It serves … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
MGIC
A-Score
1-Year Total Return ->
🥈
Fidelity National Financial
A-Score
1-Year Total Return ->
🥉
Radian Group
A-Score
1-Year Total Return ->
4
NMI Holdings
A-Score
1-Year Total Return ->
5
Assurant
A-Score
1-Year Total Return ->
6
