Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
13.69 (1y: +473%)
Market Cap 2.29 B P/E(ttm)
Enterprise Value 3.31 B P/B 2.48
RDN- NYSE (USA)
Radian Group, Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$13.69
Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry		 vs
history
Cash to Debt 0.041
RDN's Cash to Debt is ranked lower than
93% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.55 vs. RDN: 0.041 )
RDN' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 0.04
Equity to Asset 0.125
RDN's Equity to Asset is ranked lower than
71% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.23 vs. RDN: 0.125 )
RDN' s 10-Year Equity to Asset Range
Min: 0.11   Max: 0.6
Current: 0.13
0.11
0.6
Z-Score: -0.03
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry		 vs
history
Operating margin (%) -53.80
RDN's Operating margin (%) is ranked lower than
73% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.40 vs. RDN: -53.80 )
RDN' s 10-Year Operating margin (%) Range
Min: -795.5   Max: 57.3
Current: -53.8
-795.5
57.3
Net-margin (%) -54.7
RDN's Net-margin (%) is ranked lower than
53% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 6.30 vs. RDN: -54.7 )
RDN' s 10-Year Net-margin (%) Range
Min: -641.8   Max: 43.8
Current: -54.7
-641.8
43.8
ROE (%) -61.3
RDN's ROE (%) is ranked lower than
62% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.00 vs. RDN: -61.3 )
RDN' s 10-Year ROE (%) Range
Min: -210   Max: 25.6
Current: -61.3
-210
25.6
ROA (%) -7.6
RDN's ROA (%) is ranked lower than
66% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.00 vs. RDN: -7.6 )
RDN' s 10-Year ROA (%) Range
Min: -23.7   Max: 11
Current: -7.6
-23.7
11
Revenue Growth (%) -21
RDN's Revenue Growth (%) is ranked lower than
75% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 5.90 vs. RDN: -21 )
RDN' s 10-Year Revenue Growth (%) Range
Min: -34.7   Max: 15.6
Current: -21
-34.7
15.6
EBITDA Growth (%) -2.6
RDN's EBITDA Growth (%) is ranked lower than
85% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: -7.75 vs. RDN: -2.6 )
RDN' s 10-Year EBITDA Growth (%) Range
Min: -9.1   Max: 15.8
Current: -2.6
-9.1
15.8
EPS Growth (%) 17.3
RDN's EPS Growth (%) is ranked lower than
81% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: -1.20 vs. RDN: 17.3 )
RDN' s 10-Year EPS Growth (%) Range
Min: -0.7   Max: 23.2
Current: 17.3
-0.7
23.2
» RDN's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

RDN Guru Trades in Q2 2012

Chuck Royce 2,276,500 sh (+12.78%)
Steven Cohen Sold Out
Bruce Kovner Sold Out
» More
Q3 2012

RDN Guru Trades in Q3 2012

Ken Heebner 900,000 sh (New)
Chuck Royce 2,311,000 sh (+1.52%)
» More
Q4 2012

RDN Guru Trades in Q4 2012

John Paulson 3,529,700 sh (New)
Louis Moore Bacon 75,000 sh (New)
Chuck Royce 2,381,000 sh (+3.03%)
Ken Heebner Sold Out
» More
Q1 2013

RDN Guru Trades in Q1 2013

Jim Simons 2,137,800 sh (New)
George Soros 2,794,451 sh (New)
Diamond Hill Capital 815,785 sh (New)
Lee Ainslie 1,000,000 sh (New)
John Keeley 160,000 sh (New)
John Paulson 11,550,000 sh (+227.22%)
Louis Moore Bacon Sold Out
Chuck Royce 2,010,800 sh (-15.55%)
» More
» Details

Insider Trades

Latest Guru Trades with RDN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Paulson 2013-03-31 Add 227.22%0.49%$6.04 - $10.71 $ 13.6974%11550000
George Soros 2013-03-31 New Buy0.35%$6.04 - $10.71 $ 13.6974%2794451
Lee Ainslie 2013-03-31 New Buy0.14%$6.04 - $10.71 $ 13.6974%1000000
John Keeley 2013-03-31 New Buy0.03%$6.04 - $10.71 $ 13.6974%160000
John Paulson 2012-12-31 New Buy0.13%$3.91 - $5.77 $ 13.69192%3529700
Ken Heebner 2012-12-31 Sold Out 0.1%$3.91 - $5.77 $ 13.69192%0
Ken Heebner 2012-09-30 New Buy0.1%$2.69 - $4.84 $ 13.69297%900000
Premium More recent guru trades are included for Premium Members only!!

Ratios

vs
industry		 vs
history
P/B 2.48
RDN's P/B is ranked higher than
58% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.09 vs. RDN: 2.48 )
RDN' s 10-Year P/B Range
Min: 0.03   Max: 2.19
Current: 2.48
0.03
2.19
P/S 2.66
RDN's P/S is ranked lower than
53% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.96 vs. RDN: 2.66 )
RDN' s 10-Year P/S Range
Min: 0.08   Max: 5.09
Current: 2.66
0.08
5.09
EV-to-EBIT -7.06
RDN's EV-to-EBIT is ranked higher than
66% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 13.15 vs. RDN: -7.06 )
RDN' s 10-Year EV-to-EBIT Range
Min: 3.5   Max: 24.9
Current: -7.06
3.5
24.9
Shiller P/E 64.8
RDN's Shiller P/E is ranked higher than
96% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.50 vs. RDN: 64.8 )
RDN' s 10-Year Shiller P/E Range
Min: 0.71   Max: 94
Current: 64.8
0.71
94

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.07
RDN's Dividend Yield is ranked lower than
68% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.08 vs. RDN: 0.07 )
RDN' s 10-Year Dividend Yield Range
Min: 0.07   Max: 7.84
Current: 0.07
0.07
7.84
Yield on cost (5-Year) 0.02
RDN's Yield on cost (5-Year) is ranked lower than
70% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.70 vs. RDN: 0.02 )
RDN' s 10-Year Yield on cost (5-Year) Range
Min: 0.02   Max: 1.74
Current: 0.02
0.02
1.74
Share Buyback Rate -12.8
RDN's Share Buyback Rate is ranked lower than
67% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.20 vs. RDN: -12.8 )
RDN' s 10-Year Share Buyback Rate Range
Min: 5.1   Max: -13.6
Current: -12.8

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 69.2
RDN's Price/Net Current Asset Value is ranked higher than
82% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 4.05 vs. RDN: 69.2 )
RDN' s 10-Year Price/Net Current Asset Value Range
Min: 8.7   Max: 412.8
Current: 69.2
8.7
412.8
Price/Tangible Book 2.5
RDN's Price/Tangible Book is ranked lower than
66% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.00 vs. RDN: 2.5 )
RDN' s 10-Year Price/Tangible Book Range
Min: 0.1   Max: 2.1
Current: 2.5
0.1
2.1
Price/Median PS Value 0.7
RDN's Price/Median PS Value is ranked lower than
76% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.90 vs. RDN: 0.7 )
RDN' s 10-Year Price/Median PS Value Range
Min: 0.1   Max: 1.5
Current: 0.7
0.1
1.5
Forward Rate of Return (Yacktman) -24.64
RDN's Forward Rate of Return (Yacktman) is ranked lower than
58% of the 91 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 13.25 vs. RDN: -24.64 )
RDN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -94.9   Max: 76.2
Current: -24.64
-94.9
76.2

Business Description

Radian Group Inc. was incorporated as a business corporation under the laws of the State of Delaware since 1991. The Company, through its subsidiaries and affiliates, provides credit-related insurance coverage and financial services to mortgage lenders and other financial institutions. Its two business segments are mortgage insurance and financial guaranty. Its mortgage insurance segment provides credit-related insurance coverage, mainly through private mortgage insurance, and risk management services to mortgage lending institutions located throughout the United States and in select countries outside the U.S. The Company has provided these products and services mainly through its wholly-owned subsidiaries, Radian Guaranty Inc., Amerin Guaranty Corporation, and Radian Insurance Inc. The Company's mortgage insurance segment, through Radian Guaranty, offers primary and pool mortgage insurance coverage on first-lien residential mortgages. In addition to traditional mortgage insurance, in the past it has used Radian Insurance to provide other forms of credit enhancement on residential mortgage assets. These products include mortgage insurance on second-lien mortgages, credit enhancement on net interest margin securities, credit default swaps on domestic and international mortgages, and traditional mortgage insurance in international markets. The Company's financial guaranty business has mainly provided direct insurance and reinsurance on credit-based risks through Radian Asset Assurance Inc., a wholly-owned subsidiary of Radian Guaranty, and through Radian Asset Assurance's wholly-owned subsidiary Radian Asset Assurance Limited, located in the United Kingdom. Financial guaranty insurance provides an unconditional and irrevocable guaranty to the holder of a financial obligation of full and timely payment of main and interest when due. Historically, financial guaranty insurance has been used to lower an issuer's cost of borrowing when the insurance premium is less than the value of the spread between the market yield required to be paid on the insured obligation and the market yield required to be paid on the obligation if sold on the basis of its uninsured credit rating. Financial guaranty insurance also has been used to increase the marketability of obligations issued by infrequent or unknown issuers or obligations with complex structures. The Company has traditionally offered the following financial guaranty products: Public Finance, Structured Finance and Reinsurance. The Company competes directly with six other private mortgage insurers-Genworth Financial Inc., MGIC, PMI Mortgage Insurance Co., Republic Mortgage Insurance Company, CMG Mortgage Insurance Company and United Guaranty Corporation, some of which are subsidiaries of larger companies with stronger financial strength ratings. It also competes against various federal and state governmental and quasi-governmental agencies, mainly the Federal Housing Administration, the Vete
Company Website
SEC Reports
Industry: Insurance - Property & Casualty
Compare:RLI, TRV, MBI, QBIEY, TKOMY
Traded in other countries:RAG.Germany
» More Articles for RDN

Headlines

Articles On GuruFocus.com
Weekly CFO Buys Highlight: MTG, MWA, MWW, BLD, RDN Sep 04 2011 
Weekly Guru Bargains Highlights: PPC, ALR, RDN, HRB, CHS Oct 23 2010 
Weekly Guru Bargains Highlights: RDN, VMC, BKE, OSK, NBG Oct 02 2010 
Radian Group Inc. Reports Operating Results (10-Q) Aug 09 2010 
Radian Group Inc. Reports Operating Results (10-Q) Aug 09 2010 
Radian Group Inc. Reports Operating Results (10-Q/A) Nov 13 2009 
Radian Group Inc. Reports Operating Results (10-Q) Nov 09 2009 
Martin Whitman Buys more Forest City Enterprises Inc., Sells CIT Group Inc., Radian Group Inc. Sep 02 2009 
Martin Whitman: Sued MBIA, Sold Suncor Energy, St. Joe Company, MGIC Investment Corporation, and Red Jun 22 2009 
Marty Whitman’s Conviction in Ambac is Working out; Still waiting for MBIA and Radian Group? Aug 29 2008 

Personalized Checklist





Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial