Radnet (RDNT) AI Stock Analysis

• Market Cap: $4.21B
• Dividend Yield: N/A
• Average Volume (3M): 635.44K
• Price to Earnings (P/E): 1704.6
• Beta (1Y): 1.28
• Revenue Growth: 12.76%
• EPS Growth: -231.18%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.50
• Shares Outstanding: 76,889,880
• 10 Day Avg. Volume: 723,972
• 30 Day Avg. Volume: 635,438
• PEG Ratio: 12.24
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.08
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 53.52
• Enterprise Value/Ebitda: 12.89
• 1Y Price Target: $68.00
• Price Target Upside: 24.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $63.00 ▲(15.11%Upside)

Radnet's strong revenue growth and strategic acquisitions in AI technology are significant strengths. However, profitability challenges, high leverage, and valuation concerns weigh on the overall score. The stock benefits from strong corporate actions and guidance but needs to address profitability for improved investor appeal.

Positive Factors

AI and Technology

AI benefits could improve capacity and reduce costs through better workflow and efficiency.

Industry Trends

The company benefits from favorable industry trends, such as the shift of imaging procedures from hospitals to non-hospital imaging centers.

Negative Factors

Earnings and Financial Performance

RDNT shares traded off after management guided EBITDA below buy-side expectations due to the impact of fires and winter storms.

Regulatory Challenges

Medicare has been cutting reimbursement rates for radiology procedures, which is a headwind worth investors' attention.

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 at its network of outpatient centers. The company's key revenue streams include payments from third-party payers such as insurance companies, government healthcare programs like Medicare and Medicaid, and direct payments from patients. RadNet also derives income from providing imaging services to hospitals and other healthcare facilities through joint ventures and partnerships. Additionally, the company benefits from strategic acquisitions and expansion of its service offerings, which enhance its market presence and revenue potential.

Radnet Financial Statement Overview

Summary

Radnet exhibits strong revenue growth and operational efficiency, particularly in cash flow management. However, challenges remain with profitability and a high leverage ratio, necessitating focus on improving net margins and managing debt.

Income Statement

Radnet has demonstrated consistent revenue growth, with a notable increase from $1.07 billion in 2020 to $1.87 billion in TTM 2025. However, the net profit margin has declined, with a negative net income in TTM 2025, indicating profitability challenges. The EBITDA margin remains strong at 34.6% in TTM 2025, highlighting efficient operational performance amidst rising revenues.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting significant leverage, which may pose a risk in unstable market conditions. However, Radnet's equity has strengthened over the years, with stockholders' equity rising to $898 million in TTM 2025. The return on equity has shown variability, with a negative ROE in TTM 2025 due to net losses.

Cash Flow

Radnet's operating cash flow remains robust, with $257 million in TTM 2025. The free cash flow has improved significantly compared to the past negative figures, reaching $126.8 million in TTM 2025, indicating better cash management and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.62B	1.43B	1.32B	1.07B
Gross Profit	249.12M	221.39M	165.72M	191.80M	105.94M
EBITDA	262.55M	292.79M	278.53M	278.37M	199.74M
Net Income	2.79M	3.04M	33.61M	44.32M	-1.75M
Balance Sheet
Total Assets	3.29B	2.69B	2.43B	2.06B	1.79B
Cash, Cash Equivalents and Short-Term Investments	740.02M	342.57M	127.83M	134.61M	102.02M
Total Debt	1.73B	1.49B	1.51B	1.40B	1.18B
Total Liabilities	2.15B	1.88B	1.94B	1.71B	1.53B
Stockholders Equity	902.31M	630.70M	333.00M	228.90M	165.74M
Cash Flow
Free Cash Flow	1.29M	44.26M	-103.00M	-71.20M	108.32M
Operating Cash Flow	233.02M	220.86M	146.42M	149.49M	233.76M
Investing Cash Flow	-233.07M	-201.47M	-246.95M	-221.51M	-126.24M
Financing Cash Flow	397.95M	195.63M	93.65M	104.67M	-45.56M

Radnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 54.73 is below the 20-day moving average (MA) of 56.79, below the 50-day MA of 56.94, and below the 200-day MA of 61.91, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 14.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDNT.

Radnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDNT	72 Outperform	$4.21B	1,704.59	-3.65%	―	12.76%	-231.18%
CDNA	67 Neutral	$684.04M	10.66	21.57%	―	25.92%	―
SHC	58 Neutral	$3.45B	137.59	5.88%	―	2.78%	-54.72%
Sector *	50 Neutral	AU$2.64B	3.25	-57.47%	2.67%	36.37%	14.48%
GH	46 Neutral	$5.37B	―	-4584.47%	―	28.74%	18.25%
NEO	42 Neutral	$625.22M	―	-11.76%	―	9.70%	-30.94%
MYGN	40 Underperform	$353.96M	―	-13.84%	―	7.38%	60.45%

Radnet Corporate Events

RadNet Completes Acquisition of iCAD for AI Expansion

On July 17, 2025, RadNet, Inc. announced the completion of its acquisition of iCAD, Inc., a leader in AI-powered breast health solutions. This acquisition, through RadNet’s subsidiary DeepHealth, integrates iCAD’s technology and capabilities, enhancing DeepHealth’s suite of AI-powered breast cancer image interpretation and workflow solutions. The merger is expected to accelerate AI adoption and expand access to advanced breast cancer screening technologies globally, impacting over 10 million mammograms annually and improving cancer detection rates and workflow efficiency.

The most recent analyst rating on (RDNT) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Radnet stock, see the RDNT Stock Forecast page.

RadNet Secures $100 Million Loan for Growth

On June 11, 2025, RadNet, Inc. announced that it secured a $100 million incremental term loan from Barclays Bank PLC, which will be used for future acquisitions and general corporate purposes. This financial move is part of an amendment to their existing credit agreement, with the new loan maturing on April 18, 2031. The loan enhances RadNet’s capacity to pursue strategic growth opportunities, supporting its national imaging center network and technology platforms. Additionally, at the 2025 Annual Meeting of Stockholders held on June 10, 2025, RadNet’s stockholders elected seven directors and approved the appointment of Ernst & Young LLP as the company’s independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (RDNT) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Radnet stock, see the RDNT Stock Forecast page.