Radian Group (RDN) AI Stock Analysis

• Market Cap: $4.46B
• Dividend Yield: 2.78%
• Average Volume (3M): 937.90K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.67
• 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: 929,172
• 30 Day Avg. Volume: 937,900
• 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: 1.25
• Enterprise Value/Revenue: 4.41
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 6.13
• 1Y Price Target: $39.50
• Price Target Upside: 20.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $35.00 ▲(6.97% Upside)

The score is supported by strong profitability and a conservative balance sheet, plus attractive valuation (low P/E and meaningful dividend). Offsetting these positives are weak cash flow trends and clearly negative price momentum (below key moving averages with negative MACD and low RSI), which cap the overall rating despite constructive strategic/guidance commentary.

Positive Factors

Strategic Acquisition of Inigo

The acquisition of Inigo marks a strategic transformation for Radian, significantly expanding its market reach and product capabilities, positioning it for long-term growth in the global insurance market.

Strong Profitability

Radian's strong profitability margins indicate efficient operations and a robust business model, supporting sustainable earnings and financial stability over the long term.

Stable Investment Portfolio

A well-diversified and highly rated investment portfolio provides a steady income stream, enhancing Radian's financial resilience and ability to fund future growth initiatives.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can signal challenges in market conditions or competitive pressures, potentially impacting long-term business expansion and market share.

Weak Cash Flow Trends

Weak cash flow trends may limit Radian's ability to invest in growth opportunities, manage debt, or return capital to shareholders, posing risks to financial flexibility.

Increase in Total Defaults

An increase in loan defaults can strain Radian's financial resources and risk management capabilities, potentially affecting profitability and operational stability.

Radian Group Business Overview & Revenue Model

Company Description

Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. Its Mortgage segment offers credit-related insurance coverage primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management, contract underwriting, and fulfillment solutions. This segment primarily serves mortgage originators, such as mortgage banks, commercial banks, savings institutions, credit unions, and community banks. The company's Homegenius segment offers title services, including a suite of insurance and non-insurance title, tax and title data, centralized recording, document retrieval and default curative title services, and deed and property reports, as well as closing and settlement services comprising electronic execution and traditional signing services; real estate valuation products and services; and asset management services, as well as a suite of real estate technology products and services to facilitate real estate transactions, such as software as a service solutions. This segment serves consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, and real estate brokers and agents. The company was founded in 1977 and is headquartered in Wayne, Pennsylvania.

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

Mixed fundamentals: very strong profitability (TTM net margin 45.90%, EBIT margin 66.88%) and a solid balance sheet (debt-to-equity 0.24, equity ratio 56.69%), but pressured by slightly negative revenue growth (-0.70%) and weak cash generation (negative operating and free cash flow; FCF growth -51.47%).

Income Statement

Radian Group's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -0.70%, which is concerning. However, the company maintains strong profitability with a net profit margin of 45.90% and an EBIT margin of 66.88%. The gross profit margin is also healthy at 72.06%. Despite the revenue decline, the company demonstrates strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.24 in the TTM period, indicating prudent leverage management. The return on equity is 12.55%, showing decent profitability relative to shareholder equity. The equity ratio stands at 56.69%, suggesting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is significantly negative at -51.47%, indicating cash flow issues. However, the free cash flow to net income ratio is close to 1, suggesting that the company is converting its net income into free cash flow effectively despite the negative growth.

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	1.16B	1.23B	1.22B	1.42B	1.18B	837.70M
EBITDA	908.75M	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	5.59B	5.64B	5.87B	5.48B	6.22B	6.43B
Total Debt	1.15B	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	-560.23M	-666.75M	513.15M	370.63M	544.51M	641.42M
Operating Cash Flow	-556.55M	-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	302.60M	357.23M	-265.09M	-479.18M	-496.78M	222.62M

Radian Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDN, the sentiment is Negative. The current price of 32.72 is below the 20-day moving average (MA) of 33.57, below the 50-day MA of 34.90, and below the 200-day MA of 34.13, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 42.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDN.

Radian Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	82 Outperform	$5.84B	9.29	12.75%	2.02%	2.40%	1.18%
ESNT	81 Outperform	$6.16B	9.27	12.35%	1.88%	2.78%	-0.50%
NMIH	79 Outperform	$3.02B	8.09	16.17%	―	8.86%	9.51%
MTG	78 Outperform	$6.16B	8.77	14.40%	1.89%	2.20%	9.90%
AGO	70 Outperform	$3.95B	10.50	7.06%	1.50%	7.56%	-38.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RDN	63 Neutral	$4.46B	8.21	12.56%	2.78%	-3.68%	3.65%

Radian Group Corporate Events

Radian Group Completes Transformational Acquisition of Inigo Limited

On February 2, 2026, Radian Group and its subsidiary Radian US Holdings completed the previously announced acquisition of UK-based specialty insurer Inigo Limited for $1.67 billion in largely cash consideration, a price representing roughly 1.4 times Inigo’s estimated 2025 tangible equity, with a portion of management’s payout taken in Radian stock and $25 million of retention cash awards granted to Inigo’s senior team. The deal, funded from Radian’s available liquidity and excess capital at its mortgage insurance unit, transforms Radian from a primarily U.S. private mortgage insurer into a global, diversified multi-line specialty insurer, with Inigo operating as a standalone London-based business unit under its existing leadership and brand, and is expected to roughly double Radian’s annual revenue, optimize use of surplus capital and strengthen its competitive position across insurance cycles; in tandem, Radian amended its short-term incentive plan and adopted a UK sub-plan under its equity compensation program to integrate Inigo’s employees into its broader reward structure.

The most recent analyst rating on (RDN) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.

Radian Group Announces Planned Retirement of Longtime Board Member

Radian Group announced that board member Gregory Serio, who has served on the company’s Board of Directors since 2012, notified the company on January 21, 2026, that he will not stand for reelection at the 2026 annual meeting of stockholders and will retire from the Board at the end of his current term at that meeting. The company indicated that Serio’s decision was not the result of any disagreement over Radian’s operations, policies or practices, suggesting an orderly and non-contentious board transition for stakeholders.

The most recent analyst rating on (RDN) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.

Radian Group funds Inigo acquisition with intercompany note

On December 29, 2025, Radian Group Inc. entered into a $600 million, ten-year intercompany note with its wholly owned subsidiary Radian Guaranty Inc., bearing interest at 6.50% annually, to help fund the purchase price for its planned acquisition of U.K.-based Inigo Limited, which the company expects to close in February 2026, subject to customary conditions. The note, approved by the Pennsylvania Insurance Department, comes with enhanced regulatory reporting and liquidity protections, including a requirement that Radian prepay the note if Radian Guaranty needs funds to meet policyholder obligations, prior regulatory approval for all Radian Guaranty dividends for at least three years, and a minimum policyholders’ surplus of $500 million, underscoring tighter oversight as Radian pursues its expansion strategy.

The most recent analyst rating on (RDN) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Radian Group stock, see the RDN Stock Forecast page.

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.