📊 RDN Key Takeaways
Is Radian Group Inc. (RDN) a Good Investment?
Radian Group demonstrates exceptional profitability (37% operating margin) and outstanding free cash flow generation ($284M, 61% FCF margin), supported by a conservative balance sheet with 0.16x debt/equity. However, the company faces headwinds with revenue declining 0.8% YoY, flat net income, and critically low returns on equity (2.6%) and assets (1.2%), indicating capital deployment challenges despite strong cash generation.
Radian shows exceptional profitability with very high operating and net margins, solid ROE, and conservative leverage with strong interest coverage, indicating healthy core underwriting and balance sheet strength. However, revenue is slightly declining and cash conversion is modest versus earnings, suggesting some reliance on non-cash items like reserve movements. If credit performance remains stable and underwriting discipline persists, fundamentals support durable earnings power.
Why Buy Radian Group Inc. Stock? RDN Key Strengths
- Exceptional operating margin of 37.2% and net margin of 26.6% demonstrates pricing power and operational efficiency
- Superior free cash flow generation of $284.3M with 61% FCF margin indicates high-quality, sustainable earnings
- Conservative capital structure with 0.16x debt/equity ratio and 8.4x interest coverage provides financial flexibility and downside protection
- Minimal capital requirements ($749K CapEx) typical of insurance model creates cash compounding potential
- Very high operating and net margins indicating strong underwriting discipline
- Low leverage (0.21x D/E) and robust interest coverage (11.6x)
- Stable net income with improving EPS, reflecting operational efficiency/capital discipline
RDN Stock Risks: Radian Group Inc. Investment Risks
- Declining revenue (-0.8% YoY) and flat net income (+0.0% YoY) signal secular headwinds or market share loss in core surety insurance business
- Critically low ROE of 2.6% and ROA of 1.2% despite strong cash flow suggests poor capital allocation or structural underutilization of assets
- Low absolute cash position ($55.4M) relative to $10.7B asset base may constrain flexibility for dividend increases or acquisitions
- Mature industry dynamics with minimal growth suggest limited upside from operational improvements alone
- Housing/credit cycle downturn driving higher delinquencies and loss severity
- Earnings quality risk if results depend on reserve releases and non-cash items
- Sluggish mortgage originations could pressure NIW and premium growth
Key Metrics to Watch
- Revenue and underwriting volume trends - growth inflection point needed to drive equity returns
- Return on equity trajectory - sustainable improvement above 5-6% minimum acceptable threshold required
- Combined ratio and underwriting profitability - key driver of cash flow sustainability in surety insurance
- Capital deployment strategy - watch for dividend increases, buybacks, or strategic investments to improve returns on accumulated capital
- Net loss ratio and delinquency rate
- Reserve development (releases vs strengthening)
Radian Group Inc. (RDN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 61.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
RDN Profit Margin, ROE & Profitability Analysis
RDN vs Finance Sector: How Radian Group Inc. Compares
How Radian Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Radian Group Inc. Stock Overvalued? RDN Valuation Analysis 2026
Based on fundamental analysis, Radian Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Radian Group Inc. Balance Sheet: RDN Debt, Cash & Liquidity
RDN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Radian Group Inc.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $3.77 reflects profitable operations.
RDN Revenue Growth, EPS Growth & YoY Performance
RDN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $294.8M | $124.1M | $0.89 |
| Q3 2025 | $303.2M | $141.4M | $0.99 |
| Q2 2025 | $318.0M | $141.8M | $0.98 |
| Q1 2025 | $318.1M | $144.6M | $0.98 |
| Q3 2024 | $312.5M | $151.9M | $0.98 |
| Q2 2024 | $289.6M | $146.1M | $0.91 |
| Q1 2024 | $309.9M | $152.4M | $0.98 |
| Q3 2023 | $296.2M | $156.6M | $0.98 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Radian Group Inc. Dividends, Buybacks & Capital Allocation
RDN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Radian Group Inc. (CIK: 0000890926)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RDN
What is the AI rating for RDN?
Radian Group Inc. (RDN) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RDN's key strengths?
Claude: Exceptional operating margin of 37.2% and net margin of 26.6% demonstrates pricing power and operational efficiency. Superior free cash flow generation of $284.3M with 61% FCF margin indicates high-quality, sustainable earnings. ChatGPT: Very high operating and net margins indicating strong underwriting discipline. Low leverage (0.21x D/E) and robust interest coverage (11.6x).
What are the risks of investing in RDN?
Claude: Declining revenue (-0.8% YoY) and flat net income (+0.0% YoY) signal secular headwinds or market share loss in core surety insurance business. Critically low ROE of 2.6% and ROA of 1.2% despite strong cash flow suggests poor capital allocation or structural underutilization of assets. ChatGPT: Housing/credit cycle downturn driving higher delinquencies and loss severity. Earnings quality risk if results depend on reserve releases and non-cash items.
What is RDN's revenue and growth?
Radian Group Inc. reported revenue of $466.3M.
Does RDN pay dividends?
Radian Group Inc. pays dividends, with $35.3M distributed to shareholders in the trailing twelve months.
Where can I find RDN SEC filings?
Official SEC filings for Radian Group Inc. (CIK: 0000890926) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RDN's EPS?
Radian Group Inc. has a diluted EPS of $0.89.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RDN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Radian Group Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is RDN stock overvalued or undervalued?
Valuation metrics for RDN: ROE of 2.6% (sector avg: 12%), net margin of 26.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy RDN stock in 2026?
Our dual AI analysis gives Radian Group Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RDN's free cash flow?
Radian Group Inc.'s operating cash flow is $285.0M, with capital expenditures of $749.0K. FCF margin is 61.0%.
How does RDN compare to other Finance stocks?
Vs Finance sector averages: Net margin 26.6% (avg: 25%), ROE 2.6% (avg: 12%), current ratio N/A (avg: 1.2).