Radian GroupFRA:RAG +9.66%88 ROE % is 10.42% as of Mar. 2026, which is 24% below its 10-year median of 13.73. 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 502 Insurance companies, Radian Group ranks better than 51.39% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Radian Group's annualized net income for the quarter that ended in Mar. 2026 was €429 Mil. Radian Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €4,122 Mil. Therefore, Radian Group's annualized ROE % for the quarter that ended in Mar. 2026 was 10.42%.
The historical rank and industry rank for Radian Group's ROE % or its related term are showing as below:
FRA:RAG'
s ROE % Range Over the Past 10 Years
Min: 4.12 Med: 13.73 Max: 18.68
Current: 12.05
During the past 13 years, Radian Group's highest ROE % was 18.68%. The lowest was 4.12%. And the median was 13.73%.
FRA:RAG's ROE % is ranked better than 51.39% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs FRA:RAG: 12.05
Radian Group (FRA:RAG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Radian Group ROE % Related Terms
Radian Group ROE % Historical Data
* Premium members only.
The historical data trend for Radian Group's ROE % 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.
For the Insurance - Specialty subindustry, Radian Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Radian Group's ROE % distribution charts can be found below:
* The bar in red indicates where Radian Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Radian Group (FRA:RAG) has a ROE % of 10.42% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Radian Group and its competitors. This is 24% below median its historical median of 13.73. Over the past decade, Radian Group's ROE % has ranged from 4.12 to 18.68. According to the industry distribution chart, Radian Group ranks #244 out of 502 companies in the Insurance industry, placing it in the top 48.6%.
Is Radian Group's ROE % too high?
Radian Group's current ROE % of 10.42% is 24% below median its 10-year median of 13.73. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 18.68. The Insurance industry median ROE % is 11.73. Radian Group's value of 10.42% is 11.2% below this industry median. Based on the distribution chart, Radian Group ranks #244 out of 502 companies in the Insurance industry, which is above 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 ROE % compare to RYAN and MTG?
According to the Insurance industry distribution chart, Radian Group ranks #244 out of 502 companies for ROE %. This puts Radian Group in the upper half of its industry. The industry median ROE % is 11.73. Radian Group's value of 10.42% is 11.2% below this benchmark. Historically, Radian Group's own ROE % has ranged from 4.12 to 18.68 over the past decade. While the company's 10-year median is 13.73 vs. the industry median of 11.73, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Radian Group's current ROE % of 10.42% is 11.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Radian Group and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radian Group's current ROE % is 10.42%, which is 24% below median its own 10-year median of 13.73. 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 ROE % of 10.42%. 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 ROE % is 10.42%, which is 24% below median its 10-year median of 13.73 and 11.2% below the Insurance industry median of 11.73. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Radian Group (FRA:RAG), the current ROE % is 10.42% 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:
ROE %: 10.42% (24% below median its 10-year median of 13.73)
GF Value™: €32.89 vs. price of €31.80 (3.3% below fair value)
Industry Position: 11.2% below the Insurance median (#244 of 502)
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
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