Radian Group (RDN) AI Stock Analysis

• Market Cap: $4.95B
• Dividend Yield: 2.78%
• Average Volume (3M): 831.83K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.65
• 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: 1,067,763
• 30 Day Avg. Volume: 831,825
• 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: 1.34
• Enterprise Value/Revenue: 5.27
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $38.25
• Price Target Upside: 4.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.18
• Revenue Forecast (FY): $1.26B

• Rating: 66 Neutral
• Price Target: $37.00 ▲(0.79% Upside)

Radian Group's overall stock score reflects strong earnings call insights and attractive valuation, offset by mixed financial performance and technical analysis signals. The strategic acquisition of Inigo and robust profitability metrics are key strengths, while cash flow issues and strategic shifts pose risks.

Positive Factors

Strategic Acquisition

The acquisition of Inigo will transform Radian into a global multiline specialty insurer, expanding its market reach and product expertise, expected to drive long-term growth.

Strong Profitability

High profitability margins indicate strong operational efficiency and ability to generate income, supporting sustainable financial health and shareholder value.

Stable Investment Portfolio

A well-diversified, highly rated investment portfolio provides a steady income stream, enhancing financial stability and supporting long-term growth initiatives.

Negative Factors

Revenue Decline

Declining revenue growth could indicate challenges in market expansion or product demand, potentially impacting future earnings and competitive positioning.

Cash Flow Issues

Negative cash flow trends suggest difficulties in generating sufficient cash from operations, which may limit investment capabilities and financial flexibility.

Divestiture of Non-Core Businesses

Divesting non-core businesses could lead to short-term disruption and loss of revenue streams, impacting overall business stability during the transition.

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

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	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: Positive
• Last Price: 36.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 36.71 is above the 20-day moving average (MA) of 35.74, above the 50-day MA of 34.71, and above the 200-day MA of 33.75, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.50 is Neutral, 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
ACT	82 Outperform	$5.83B	9.29	12.75%	2.02%	2.40%	1.18%
NMIH	79 Outperform	$3.18B	8.70	16.17%	―	8.86%	9.51%
MTG	78 Outperform	$6.64B	9.54	14.40%	1.89%	2.20%	9.90%
ESNT	73 Outperform	$6.37B	9.58	12.35%	1.88%	2.78%	-0.50%
AGO	73 Outperform	$4.20B	11.15	7.06%	1.50%	7.56%	-38.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RDN	66 Neutral	$4.95B	9.17	12.56%	2.78%	-3.68%	3.65%

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.

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.