Radian GroupFRA:RAG +3.80%86 Return-on-Tangible-Equity is 10.90% as of Mar. 2026, which is 21% below its 10-year median of 13.77. GuruFocus rates FRA:RAG with a GF Score™ of 86/100 and a GF Value™ of €33.21. The stock has 5 warning signs investors should review. Among 500 Insurance companies, Radian Group ranks worse than 54.6% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Radian Group's annualized net income for the quarter that ended in Mar. 2026 was €429 Mil. Radian Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,940 Mil. Therefore, Radian Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.90%.
The historical rank and industry rank for Radian Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:RAG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.42 Med: 13.77 Max: 19.34
Current: 12.27
During the past 13 years, Radian Group's highest Return-on-Tangible-Equity was 19.34%. The lowest was 4.42%. And the median was 13.77%.
FRA:RAG's Return-on-Tangible-Equity is ranked worse than 54.6% of 500
companies
in the Insurance industry
Industry Median: 13.515
vs FRA:RAG: 12.27
Radian Group (FRA:RAG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Radian Group Return-on-Tangible-Equity Related Terms
Radian Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Radian Group's Return-on-Tangible-Equity 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.
FRA:RAG vs RYAN, MTG, ESNT: Return-on-Tangible-Equity Comparison
For the Insurance - Specialty subindustry, Radian Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Radian Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Radian Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.90% mean?
Radian Group (FRA:RAG) has a Return-on-Tangible-Equity of 10.90% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Radian Group and its competitors. This is 21% below median its historical median of 13.77. Over the past decade, Radian Group's Return-on-Tangible-Equity has ranged from 4.42 to 19.34. According to the industry distribution chart, Radian Group ranks #273 out of 500 companies in the Insurance industry, placing it in the top 54.6%.
Is Radian Group's Return-on-Tangible-Equity too high?
Radian Group's current Return-on-Tangible-Equity of 10.90% is 21% below median its 10-year median of 13.77. Over the past 10 years, this metric has ranged from a low of 4.42 to a high of 19.34. The Insurance industry median Return-on-Tangible-Equity is 13.52. Radian Group's value of 10.90% is 19.3% below this industry median. Based on the distribution chart, Radian Group ranks #273 out of 500 companies in the Insurance industry, which is below the industry midpoint. Overall, Radian Group has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Radian Group's Return-on-Tangible-Equity compare to RYAN and MTG?
According to the Insurance industry distribution chart, Radian Group ranks #273 out of 500 companies for Return-on-Tangible-Equity. This places Radian Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.52. Radian Group's value of 10.90% is 19.3% below this benchmark. Historically, Radian Group's own Return-on-Tangible-Equity has ranged from 4.42 to 19.34 over the past decade. While the company's 10-year median is 13.77 vs. the industry median of 13.52, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Radian Group's current Return-on-Tangible-Equity of 10.90% is 19.3% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Radian Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radian Group's current Return-on-Tangible-Equity is 10.90%, which is 21% below median its own 10-year median of 13.77. 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 Return-on-Tangible-Equity of 10.90%. The stock's GF Value™ is €33.21, compared to a current price of €32.80 — trading 1.2% below its estimated fair value. The current Return-on-Tangible-Equity is 10.90%, which is 21% below median its 10-year median of 13.77 and 19.3% below the Insurance industry median of 13.52. Radian Group's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Radian Group (FRA:RAG), the current Return-on-Tangible-Equity is 10.90% 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 €32.80 is trading 1.2% below its estimated GF Value™ of €33.21.
Key valuation signals for FRA:RAG:
Return-on-Tangible-Equity: 10.90% (21% below median its 10-year median of 13.77)
GF Value™: €33.21 vs. price of €32.80 (1.2% below fair value)
Industry Position: 19.3% below the Insurance median (#273 of 500)
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.
86GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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