Radnet (RDNT) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: N/A
• Average Volume (3M): 801.91K
• Price to Earnings (P/E): 1632.4
• Beta (1Y): 1.17
• Revenue Growth: 13.18%
• EPS Growth: 401.41%
• Country: US
• Employees: 8,546
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.03
• Shares Outstanding: 74,041,720
• 10 Day Avg. Volume: 576,633
• 30 Day Avg. Volume: 801,915
• PEG Ratio: 4.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.00
• Price Target Upside: 25.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

RadNet's strong financial performance and promising strategic initiatives, including the merger with iCAD, are significant positives. However, the high P/E ratio suggests overvaluation, and technical indicators show bearish momentum, warranting caution. Despite short-term challenges, the company's strategic positioning and growth prospects are promising.

Positive Factors

Acquisition

RDNT's acquisition of ICAD positions the company as a leading global AI tech player in breast cancer imaging.

Product Expansion

There is a strong interest in the newly introduced DeepHealth OS software suite, with expectations for expansion and a potential hospital win.

Revenue Growth

RDNT's Digital Health segment experienced a strong 29% year-over-year increase in revenue.

Negative Factors

Earnings Forecast

FY25 EBITDA guidance fell short of expectations primarily due to the Q1 impact from fires and winter storms.

Earnings Guidance

RDNT shares dropped after management guided EBITDA below expectations due to fires and winter storms.

Wage Inflation

Wage inflation remains elevated, with expectations for further increases in the radiology space.

Radnet Business Overview & Revenue Model

Company Description

RadNet, Inc. (RDNT) is a leading provider of outpatient diagnostic imaging services in the United States. It operates a network of imaging centers offering a comprehensive range of imaging services, including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), ultrasound, X-ray, and other related healthcare services. The company primarily serves patients, healthcare providers, and hospitals, focusing on delivering high-quality, cost-effective diagnostic imaging solutions.

How the Company Makes Money

RadNet makes money primarily through the provision of diagnostic imaging services at its network of outpatient imaging centers. The company's revenue model is based on fees for imaging services provided to patients, which are typically paid by private insurers, government programs such as Medicare and Medicaid, or directly by patients. Key revenue streams include charges for various imaging procedures like MRI, CT scans, and X-rays. RadNet also benefits from partnerships and affiliations with hospitals and healthcare providers, which often refer patients to RadNet's facilities for imaging services. Additionally, RadNet may engage in joint ventures or strategic acquisitions to expand its network and enhance its service offerings, thus contributing to its revenue growth.

Radnet Financial Statement Overview

Summary

Radnet demonstrates strong growth with increasing revenues and improved operational efficiency. The balance sheet shows significant equity growth, though high debt levels remain a risk. Cash flow is robust but with potential concerns from investing cash flows.

Income Statement

Radnet has shown a positive trajectory with consistent revenue growth over the years, highlighted by a significant revenue increase from $1.43 billion in 2022 to $1.83 billion in 2024. The EBIT margin has improved, reflecting better operational efficiency. However, the net profit margin remains modest, suggesting room for improvement in cost management.

Balance Sheet

The company exhibits a strong equity growth, with stockholders' equity increasing significantly from $332.9 million in 2022 to $902.3 million in 2024. The debt-to-equity ratio has improved, indicating better leverage management, though the debt level remains relatively high, posing a risk in fluctuating interest rate environments.

Cash Flow

Radnet's operating cash flow has shown stability, and there is a notable improvement in free cash flow, indicating better capital expenditure management. The free cash flow to net income ratio suggests a healthy conversion of earnings into cash, although the volatility in investing cash flows could be a concern for future liquidity.

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
1.83B	221.39M	165.72M	191.80M	105.94M
	EBIT
104.62M	98.70M	46.36M	82.55M	53.23M
	EBITDA
323.10M	292.79M	278.53M	278.37M	199.74M
	Net Income Common Stockholders
2.79M	3.04M	33.61M	44.32M	-1.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
740.02M	342.57M	127.83M	134.61M	102.02M
	Total Assets
3.29B	2.69B	2.43B	2.06B	1.79B
	Total Debt
1.73B	1.49B	1.51B	1.40B	1.18B
	Net Debt
988.84M	1.15B	1.39B	1.26B	1.08B
	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: Neutral
• Last Price: 53.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 53.38 is above the 20-day moving average (MA) of 50.95, above the 50-day MA of 51.36, and below the 200-day MA of 64.09, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 87.81 is Negative, 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
CDNA	71 Outperform	$835.21M	14.75	19.46%	―	19.07%	―
SHC	68 Neutral	$3.51B	142.96	5.88%	―	2.78%	-54.72%
RDNT	67 Neutral	$3.95B	1,632.42	0.36%	―	13.18%	401.41%
GH	57 Neutral	$6.05B	―	-4584.47%	―	28.20%	13.87%
NEO	52 Neutral	$990.95M	―	-8.57%	―	10.10%	8.79%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
MYGN	51 Neutral	$696.82M	―	-17.15%	―	12.15%	61.33%

Radnet Corporate Events

RadNet Announces Merger Agreement with iCAD

On April 15, 2025, RadNet, Inc. announced a definitive merger agreement to acquire iCAD, Inc. in an all-stock transaction valued at approximately $103 million. This acquisition aims to enhance RadNet’s AI-powered breast cancer detection capabilities by integrating iCAD’s ProFound Breast Health Suite into RadNet’s DeepHealth portfolio. The merger is expected to accelerate RadNet’s growth and leadership in cancer screening and AI, with iCAD’s team joining RadNet to expand their AI-driven solutions. The transaction, subject to iCAD stockholder approval and other conditions, is anticipated to close in the second or third quarter of 2025.

Spark’s Take on RDNT Stock

According to Spark, TipRanks’ AI Analyst, RDNT is a Neutral.

Radnet’s overall score reflects strong financial performance and promising earnings call insights, which are offset by technical indicators showing bearish momentum and a high valuation. While the company is on a solid growth path with strategic expansions, potential risks from high debt and labor challenges necessitate caution.

To see Spark’s full report on RDNT stock, click here.