Radnet (RDNT) AI Stock Analysis

• Market Cap: $5.86B
• Dividend Yield: N/A
• Average Volume (3M): 839.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 11.09%
• EPS Growth: -165.89%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.20
• Shares Outstanding: 77,282,455
• 10 Day Avg. Volume: 667,142
• 30 Day Avg. Volume: 839,216
• PEG Ratio: -90.19
• Price to Book (P/B): 5.65
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 3.95K
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 31.95
• Enterprise Value/Ebitda: 30.01
• 1Y Price Target: $88.75
• Price Target Upside: 15.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $88.00 ▲(14.09% Upside)

RadNet, Inc. shows strong technical momentum and positive earnings call sentiment, with record-breaking revenue and strategic growth initiatives. However, the company's valuation is impacted by negative profitability, and financial performance is constrained by leverage and margin challenges.

Positive Factors

Revenue Growth

Strong revenue growth reflects successful strategic initiatives and market demand, indicating robust business expansion potential.

Digital Health Expansion

Significant growth in digital health and AI revenue suggests a strong position in a rapidly evolving sector, enhancing long-term prospects.

Strategic Acquisition

The acquisition of CIMAR UK enhances RadNet's technological capabilities and market reach, supporting future growth in connected imaging-based care.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial stability and investment capacity.

Profitability Concerns

Negative profitability indicates challenges in cost management and pricing, which could hinder sustainable growth and shareholder returns.

Labor Market Challenges

Labor market challenges can affect operational efficiency and service delivery, potentially limiting the company's ability to scale effectively.

Radnet Business Overview & Revenue Model

Company Description

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems for the diagnostic imaging industry, including picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of images in the field of mammography, as well as AI solutions for lung and prostate cancer. As of December 31, 2021, it owned and managed 347 centers in Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York. The company was founded in 1981 and is headquartered in Los Angeles, California.

How the Company Makes Money

Radnet generates revenue primarily through the provision of diagnostic imaging services to patients, which are often reimbursed by insurance providers, including Medicare and Medicaid. The company operates a fee-for-service model, where it bills patients or their insurance for each imaging procedure performed. Key revenue streams include payments for various imaging modalities such as MRI, CT, and ultrasound services. Additionally, Radnet benefits from strategic partnerships with healthcare providers and payers that facilitate patient referrals and enhance service delivery. The company may also engage in value-based care contracts that incentivize the delivery of cost-effective imaging services, contributing to its overall earnings.

Radnet Financial Statement Overview

Summary

Radnet demonstrates moderate revenue growth and strong cash flow generation, but profitability and leverage remain concerns. The company faces challenges in maintaining margins and managing debt levels, which could impact future financial stability.

Income Statement

Radnet's income statement shows moderate revenue growth with a 3.24% increase in TTM, but profitability is a concern with a negative net profit margin of -0.65%. The gross profit margin has decreased from previous years, indicating rising costs or pricing pressures. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.75, indicating significant leverage, though it has improved from prior years. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the high leverage poses risks.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 95.27% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio suggests that cash flow is not fully translating into profitability. Overall, cash flow management appears robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.83B	1.62B	1.43B	1.32B	1.07B
Gross Profit	225.22M	249.12M	221.39M	165.72M	191.80M	105.94M
EBITDA	239.79M	262.55M	292.79M	278.53M	278.37M	199.74M
Net Income	-12.71M	2.79M	3.04M	10.65M	24.73M	-14.84M
Balance Sheet
Total Assets	3.67B	3.29B	2.69B	2.43B	2.06B	1.79B
Cash, Cash Equivalents and Short-Term Investments	804.72M	740.02M	342.57M	127.83M	134.61M	102.02M
Total Debt	1.85B	1.73B	1.49B	1.51B	1.40B	1.18B
Total Liabilities	2.35B	2.15B	1.88B	1.94B	1.71B	1.53B
Stockholders Equity	1.06B	902.31M	630.70M	333.00M	228.90M	165.74M
Cash Flow
Free Cash Flow	52.06M	44.95M	44.26M	-103.00M	-71.20M	108.32M
Operating Cash Flow	257.19M	233.02M	220.86M	146.42M	149.49M	233.76M
Investing Cash Flow	-278.74M	-233.07M	-201.47M	-246.95M	-221.51M	-126.24M
Financing Cash Flow	77.48M	397.95M	195.63M	93.65M	104.67M	-45.56M

Radnet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.13
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNT, the sentiment is Neutral. The current price of 77.13 is below the 20-day moving average (MA) of 79.09, below the 50-day MA of 78.33, and above the 200-day MA of 63.47, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDNT.

Radnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXAS	70 Outperform	$19.21B	―	-34.54%	―	14.47%	-353.69%
SHC	69 Neutral	$4.34B	78.91	10.86%	―	2.67%	-21.96%
RDNT	67 Neutral	$5.86B	―	-1.30%	―	11.09%	-165.89%
RVTY	67 Neutral	$11.20B	49.40	3.04%	0.27%	3.37%	-18.80%
NEO	55 Neutral	$1.53B	―	-12.99%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	50 Neutral	$1.31B	―	-39.71%	―	-2.77%	-4327.53%

Radnet Corporate Events

RadNet Registers Shares for Resale with SEC

On October 21, 2025, RadNet, Inc. filed a prospectus supplement with the SEC to register for resale up to 59,444 shares of its common stock. This move involves the opinion of Reed Smith LLP on the legality of the securities, potentially impacting the company’s market operations by providing liquidity options for selling stockholders.