Radian Group (RDN) AI Stock Analysis

• Market Cap: $4.79B
• Dividend Yield: 2.85%
• Average Volume (3M): 841.00K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.70
• Revenue Growth: -3.68%
• EPS Growth: 3.65%
• Country: US
• Employees: 1,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.15
• Shares Outstanding: 135,489,060
• 10 Day Avg. Volume: 915,004
• 30 Day Avg. Volume: 840,997
• PEG Ratio: 2.03
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 3.75
• P/FCF Ratio: -7.25
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: $39.40
• Price Target Upside: 11.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.08
• Revenue Forecast (FY): $1.25B

• Rating: 77 Outperform
• Price Target: $40.00 ▲(12.71% Upside)

Radian Group's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's strategic acquisition of Inigo and robust core business performance further enhance its outlook. However, technical indicators suggest a neutral trend, and strategic shifts such as divestitures and paused share repurchases present potential short-term challenges.

Positive Factors

Strategic Acquisition of Inigo

The acquisition of Inigo is expected to significantly expand Radian's market reach and product offerings, positioning it as a global player in specialty insurance, which can drive long-term growth and diversification.

Strong Cash Flow Generation

Robust cash flow generation indicates effective cash management, providing Radian with the flexibility to invest in growth opportunities and manage debt, supporting long-term financial stability.

High Net Income and Return on Equity

Strong net income and ROE reflect Radian's effective cost management and profitability, enhancing its ability to reinvest in business operations and reward shareholders over the long term.

Negative Factors

Divestiture of Non-Core Businesses

Divesting non-core businesses may lead to short-term operational disruptions and loss of revenue streams, posing challenges in maintaining current business momentum during the transition.

Paused Share Repurchase Program

Pausing share repurchases may temporarily impact shareholder returns and signal a shift in capital allocation priorities, potentially affecting investor sentiment and stock performance.

Increase in Total Defaults

An increase in loan defaults can strain Radian's financial resources and risk management capabilities, potentially impacting its profitability and requiring adjustments in underwriting practices.

Radian Group Business Overview & Revenue Model

Company Description

Radian Group Inc. (RDN) is a leading provider of mortgage and real estate services, primarily focusing on mortgage insurance and risk management solutions. The company operates through its subsidiaries, offering a range of products that include mortgage insurance, risk management, and related services to lenders, investors, and homeowners in the United States. Radian aims to facilitate homeownership while managing credit risk in the mortgage finance sector.

How the Company Makes Money

Radian Group generates revenue primarily through the sale of mortgage insurance premiums, which are collected from lenders who require coverage for loans with higher risk profiles. The company also earns income from its risk management services, which include analytics and consulting for mortgage lenders and investors. Additionally, Radian benefits from investment income derived from its portfolio of investments, which includes fixed-income securities. Significant partnerships with various financial institutions enhance Radian's market reach and contribute to its earnings, as these partnerships often lead to increased business volume and cross-selling opportunities.

Radian Group Financial Statement Overview

Summary

Radian Group is financially solid, with strengths in profitability and cash management. While revenue and profit growth are positive, the lack of detailed operational performance metrics suggests potential areas for transparency improvement. The balance sheet is stable, albeit with potential for more efficient asset utilization.

Income Statement

Radian Group shows a strong gross profit margin with consistent revenue growth over the years. However, the absence of EBIT and EBITDA figures in the latest year reduces visibility into operational efficiency. The net profit margin is healthy, indicating effective cost management.

Balance Sheet

The company maintains a solid equity base with a moderate debt-to-equity ratio, indicative of prudent financial leverage. However, there is room for improvement in terms of asset utilization efficiency, as evidenced by a stable return on equity.

Cash Flow

Radian Group demonstrates robust cash flow generation with positive operating cash flow and free cash flow. The free cash flow to net income ratio is strong, reflecting effective cash management practices. However, the decline in operating cash flow compared to previous years is a point of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.29B	1.24B	1.19B	1.33B	1.44B
Gross Profit	877.64M	1.23B	1.22B	1.42B	1.18B	837.70M
EBITDA	923.12M	953.78M	946.10M	1.11B	924.76M	622.32M
Net Income	576.09M	604.44M	603.12M	742.93M	600.67M	393.63M
Balance Sheet
Total Assets	8.20B	8.66B	7.59B	7.06B	7.84B	7.95B
Cash, Cash Equivalents and Short-Term Investments	15.26M	5.64B	5.87B	5.48B	6.22B	6.43B
Total Debt	1.13B	2.34B	1.58B	1.57B	1.56B	1.58B
Total Liabilities	3.55B	4.04B	3.20B	3.14B	3.58B	3.66B
Stockholders Equity	4.65B	4.62B	4.40B	3.92B	4.26B	4.28B
Cash Flow
Free Cash Flow	273.12M	-666.75M	513.15M	370.63M	544.51M	641.42M
Operating Cash Flow	276.80M	-663.57M	529.43M	388.30M	557.11M	658.43M
Investing Cash Flow	239.92M	327.75M	-300.84M	-5.17M	-1.86M	-883.18M
Financing Cash Flow	245.50M	357.23M	-265.09M	-479.18M	-496.78M	222.62M

Radian Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDN, the sentiment is Positive. The current price of 35.49 is above the 20-day moving average (MA) of 33.98, above the 50-day MA of 34.77, and above the 200-day MA of 33.50, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 92.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDN.

Radian Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMIH	82 Outperform	$2.82B	7.85	16.17%	―	8.86%	9.51%
ACT	80 Outperform	$5.34B	8.50	12.75%	2.14%	2.40%	1.18%
MTG	78 Outperform	$6.33B	9.09	14.40%	1.97%	2.20%	9.90%
RDN	77 Outperform	$4.79B	8.82	12.56%	2.85%	-3.68%	3.65%
ESNT	73 Outperform	$6.10B	9.02	12.35%	1.99%	2.78%	-0.50%
AGO	71 Outperform	$4.14B	10.65	7.06%	1.62%	7.56%	-38.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Radian Group Corporate Events

Radian Group Secures New $500 Million Credit Facility

On November 4, 2025, Radian Group Inc. entered into a new credit agreement with Royal Bank of Canada and other financial institutions, establishing a $500 million unsecured revolving credit facility. This agreement, which replaces a prior one from December 2021, includes an option to increase borrowing capacity by $250 million and is set to mature in 2030. The facility is intended to support Radian’s working capital, corporate purposes, and growth initiatives, with interest rates and fees dependent on the company’s debt rating. The agreement outlines various covenants and conditions, including maintaining certain financial ratios and ratings, and specifies events of default that could lead to immediate repayment obligations.

The most recent analyst rating on (RDN) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.

Radian Group’s Strategic Shift and Financial Highlights

Radian Group Inc., a prominent player in the U.S. private mortgage insurance sector, is known for its commitment to expanding access to affordable homeownership and providing solutions that support sustainable homeownership. The company is currently undergoing a strategic transformation to become a global multi-line specialty insurer.

Radian Group Inc’s Strategic Shifts and Strong Earnings

Radian Group Inc’s recent earnings call revealed a robust performance in its core mortgage insurance business, underscored by strategic maneuvers such as the acquisition of Inigo. While these moves are poised to fuel long-term growth, the company faces challenges due to the divestiture of non-core businesses and a temporary halt in share repurchases, indicating a period of strategic transition.

Radian Group to Acquire Inigo Limited for $1.7B

On September 18, 2025, Radian Group Inc. announced its agreement to acquire Inigo Limited, a Lloyd’s specialty insurer, for $1.7 billion. This acquisition is a strategic move to transform Radian into a global multi-line specialty insurer, significantly enhancing its product expertise and market reach. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals. Concurrently, Radian plans to divest its Mortgage Conduit, Title, and Real Estate Services businesses, aiming to simplify its operations and focus on its new strategic direction. These divestitures are expected to be completed by the third quarter of 2026.

The most recent analyst rating on (RDN) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.

Radian Group Amends Repurchase Agreement with JPMorgan

Radian Mortgage Capital LLC, a subsidiary of Radian Group Inc., has amended its Uncommitted Master Repurchase Agreement with JPMorgan Chase Bank to increase the maximum borrowing amount to $500 million and extend the termination date to August 27, 2026. This amendment, effective as of August 28, 2025, reaffirms the company’s obligations under the existing Parent Guaranty, while maintaining other terms of the agreement unchanged.

The most recent analyst rating on (RDN) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.