Radian GroupFRA:RAG +9.66%88 Interest Coverage is 9.43 as of Mar. 2026, which is 15% below its 10-year median of 11.06. GuruFocus rates FRA:RAG with a GF Score™ of 88/100 and a GF Value™ of €32.89. The stock has 5 warning signs investors should review. Among 351 Insurance companies, Radian Group ranks worse than 62.11% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Radian Group's
EBIT
for the
three
months ended in Mar. 2026 was €168 Mil. Radian Group's Interest Expense for the
three
months ended in Mar. 2026 was €-18 Mil.
Radian Group's interest coverage for the quarter that ended in Mar. 2026 was 9.43.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Radian Group's Interest Coverage or its related term are showing as below:
FRA:RAG'
s Interest Coverage Range Over the Past 10 Years
Min: 6.52 Med: 11.06 Max: 16.08
Current: 10.32
FRA:RAG's Interest Coverage is ranked worse than 62.11% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs FRA:RAG: 10.32
Radian Group (FRA:RAG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Radian Group Interest Coverage Related Terms
Radian Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Radian Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:RAG vs RYAN, MTG, ESNT: Interest Coverage Comparison
For the Insurance - Specialty subindustry, Radian Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Radian Group Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Radian Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Radian Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Radian Group (FRA:RAG) has a Interest Coverage of 9.43 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Radian Group and its competitors. This is 15% below median its historical median of 11.06. Over the past decade, Radian Group's Interest Coverage has ranged from 6.52 to 16.08. According to the industry distribution chart, Radian Group ranks #218 out of 351 companies in the Insurance industry, placing it in the top 62.1%.
Is Radian Group's Interest Coverage too high?
Radian Group's current Interest Coverage of 9.43 is 15% below median its 10-year median of 11.06. Over the past 10 years, this metric has ranged from a low of 6.52 to a high of 16.08. The Insurance industry median Interest Coverage is 16.23. Radian Group's value of 9.43 is 41.9% below this industry median. Based on the distribution chart, Radian Group ranks #218 out of 351 companies in the Insurance industry, which is below the industry midpoint. Overall, Radian Group has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Radian Group's Interest Coverage compare to RYAN and MTG?
According to the Insurance industry distribution chart, Radian Group ranks #218 out of 351 companies for Interest Coverage. This places Radian Group in the lower half of its industry. The industry median Interest Coverage is 16.23. Radian Group's value of 9.43 is 41.9% below this benchmark. Historically, Radian Group's own Interest Coverage has ranged from 6.52 to 16.08 over the past decade. While the company's 10-year median is 11.06 vs. the industry median of 16.23, Radian Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Radian Group's current Interest Coverage of 9.43 is 41.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Radian Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radian Group's current Interest Coverage is 9.43, which is 15% below median its own 10-year median of 11.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Radian Group stock overvalued right now?
Radian Group (FRA:RAG) has a current Interest Coverage of 9.43. The stock's GF Value™ is €32.89, compared to a current price of €31.80 — trading 3.3% below its estimated fair value. The current Interest Coverage is 9.43, which is 15% below median its 10-year median of 11.06 and 41.9% below the Insurance industry median of 16.23. Radian Group's overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Radian Group (FRA:RAG), the current Interest Coverage is 9.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Radian Group (FRA:RAG) Overvalued in 2026?
Based on GuruFocus' analysis, Radian Group stock appears to be undervalued.
The current stock price of €31.80 is trading 3.3% below its estimated GF Value™ of €32.89.
Key valuation signals for FRA:RAG:
Interest Coverage: 9.43 (15% below median its 10-year median of 11.06)
GF Value™: €32.89 vs. price of €31.80 (3.3% below fair value)
Industry Position: 41.9% below the Insurance median (#218 of 351)
No single metric tells the full story. See the FRA:RAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Radian Group Inc is engaged in mortgage and real estate services. It provides both credit-related mortgage insurance coverage and other products and services across the residential real estate and mortgage finance industries. It has one reportable segment, Mortgage Insurance, which primarily derives its revenue by providing private mortgage insurance on residential first-lien mortgage loans to mortgage lending institutions and mortgage credit investors.
88GF Score
Get the complete analysis for FRA:RAG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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