Radnet (RDNT) AI Stock Analysis

• Market Cap: $4.25B
• Dividend Yield: N/A
• Average Volume (3M): 769.64K
• Price to Earnings (P/E): 1704.6
• Beta (1Y): 1.22
• Revenue Growth: 12.76%
• EPS Growth: -231.18%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.50
• Shares Outstanding: 75,030,100
• 10 Day Avg. Volume: 917,090
• 30 Day Avg. Volume: 769,636
• PEG Ratio: 12.94
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.19
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 9.99
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $69.25
• Price Target Upside: 22.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $63.00 ▲( 11.29% Upside)

RadNet's strong revenue growth, strategic acquisition, and improved operational efficiency are key strengths. However, challenges with profitability, high debt levels, and labor costs temper the outlook.

Positive Factors

Cash Balance Utilization

With a $740MM cash balance, management's disciplined acquisition strategy should translate to EBITDA and growth boosts not currently reflected in the stock.

Mergers and Acquisitions

RDNT's announcement of its intent to acquire publicly-traded AI company ICAD in a $103MM all-stock transaction is a positive.

Revenue Growth

RDNT saw strong revenue growth in its Digital Health segment with a 29% year-over-year increase.

Negative Factors

Earnings Expectations

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

Margin Pressure

Margin de-leveraging occurred in Q1 due to the volume impact from weather issues, posing margin headwinds.

Wage Inflation

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

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 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 shows a strong growth trajectory with significant revenue increases and improved EBIT margins. However, the net profit margin is modest, and the high debt level poses a risk. Cash flow generation is robust, but there are concerns regarding the volatility in 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.42B	1.83B	1.62B	1.43B	1.32B	1.07B
	Gross Profit
562.17M	249.12M	221.39M	165.72M	191.80M	105.94M
	EBIT
87.17M	104.62M	98.70M	46.36M	82.55M	53.23M
	EBITDA
621.66M	262.55M	292.79M	278.53M	278.37M	199.74M
	Net Income Common Stockholders
23.29M	2.79M	3.04M	33.61M	44.32M	-1.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
717.32M	740.02M	342.57M	127.83M	134.61M	102.02M
	Total Assets
3.34B	3.29B	2.69B	2.43B	2.06B	1.79B
	Total Debt
1.75B	1.73B	1.49B	1.51B	1.40B	1.18B
	Net Debt
1.03B	988.84M	1.15B	1.39B	1.26B	1.08B
	Total Liabilities
2.20B	2.15B	1.88B	1.94B	1.71B	1.53B
	Stockholders Equity
898.14M	902.31M	630.70M	333.00M	228.90M	165.74M
Cash Flow		Free Cash Flow
126.76M	1.29M	44.26M	-103.00M	-71.20M	108.32M
	Operating Cash Flow
257.42M	233.02M	220.86M	146.42M	149.49M	233.76M
	Investing Cash Flow
-233.05M	-233.07M	-201.47M	-246.95M	-221.51M	-126.24M
	Financing Cash Flow
166.31M	397.95M	195.63M	93.65M	104.67M	-45.56M

Radnet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 56.61
• 50DMA: Positive
• 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 RDNT, the sentiment is Neutral. The current price of 56.61 is above the 20-day moving average (MA) of 56.31, above the 50-day MA of 52.67, and below the 200-day MA of 63.88, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 25.43 is Neutral, 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	77 Outperform	$943.79M	14.71	21.57%	―	25.92%	―
RDNT	72 Outperform	$4.25B	1,704.59	-3.65%	―	12.76%	-231.18%
SHC	66 Neutral	$3.45B	140.42	5.88%	―	2.78%	-54.72%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
NEO	52 Neutral	$953.63M	―	-8.57%	―	10.10%	8.79%
GH	52 Neutral	$4.71B	―	-4584.47%	―	28.20%	13.87%
MYGN	51 Neutral	$360.41M	―	-13.84%	―	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.