📊 RDN Key Takeaways
Is RDN a Good Investment? Thesis Analysis
Radian Group demonstrates fortress-like financial health with exceptional operating margins (66.1%), minimal leverage (0.21x debt/equity), and strong free cash flow generation, positioning it as a stable, profitable business. However, declining revenue (-0.8% YoY) and stagnant net income growth present headwinds that require monitoring, though EPS growth (+5.6%) reflects effective capital allocation through likely share buybacks.
Why Buy RDN? Key Strengths
- Exceptional operating margin of 66.1% demonstrates pricing power and operational efficiency in surety insurance
- Fortress balance sheet with low leverage (0.21x debt/equity) and strong interest coverage (11.6x) provides financial flexibility
- Consistent free cash flow generation ($115.7M) with 9.7% FCF margin despite top-line headwinds
RDN Investment Risks to Consider
- Revenue declining trend (-0.8% YoY) suggests market share loss or structural headwinds in surety insurance sector
- Stagnant net income growth (0.0% YoY) indicates lack of organic growth momentum and operational leverage
- Cyclical surety insurance business is sensitive to economic downturns and credit conditions
Key Metrics to Watch
- Revenue growth trajectory and stabilization timing
- Underwriting profitability and combined ratios
- Free cash flow sustainability and capital allocation decisions
RDN Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RDN Profitability Ratios
RDN vs Finance Sector
How RADIAN GROUP INC compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RDN Overvalued or Undervalued?
Based on fundamental analysis, RADIAN GROUP INC appears fundamentally strong 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.
RDN Balance Sheet & Liquidity
RDN 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
RDN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $286.8M | $146.1M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RDN Capital Allocation
RDN SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RDN's key strengths?
Claude: Exceptional operating margin of 66.1% demonstrates pricing power and operational efficiency in surety insurance. Fortress balance sheet with low leverage (0.21x debt/equity) and strong interest coverage (11.6x) provides financial flexibility.
What are the risks of investing in RDN?
Claude: Revenue declining trend (-0.8% YoY) suggests market share loss or structural headwinds in surety insurance sector. Stagnant net income growth (0.0% YoY) indicates lack of organic growth momentum and operational leverage.
What is RDN's revenue and growth?
RADIAN GROUP INC reported revenue of $1.2B.
Does RDN pay dividends?
RADIAN GROUP INC pays dividends, with $145.6M 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 $4.14.
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 April 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 12.2% (sector avg: 12%), net margin of 48.7% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
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 $119.9M, with capital expenditures of $4.2M. FCF margin is 9.7%.
How does RDN compare to other Finance stocks?
Vs Finance sector averages: Net margin 48.7% (avg: 25%), ROE 12.2% (avg: 12%), current ratio N/A (avg: 1.2).