Fundamentals snapshot
RDN · NYQ · Financial Services · Insurance - Specialty
Current price
$35.80
52-week range
$30.53 - $41.05
Market cap
$4.74B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $632.73M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Radian Group sells insurance that protects lenders if a homeowner stops making mortgage payments, meaning their main income comes from these insurance policies. This is important because it allows more people to get mortgages, and Radian makes money from the premiums (regular payments) it receives for taking on that risk.
Radian Group Inc. has roots dating back to 1977, initially operating as CMAC Investment Corporation. It was spun off as a public company in 1992. A significant turning point was the 1998 merger with Amerin Corporation, after which the company rebranded as Radian Group Inc. in 1999. This merger aimed to create greater efficiency and expand its market presence. Radian has since evolved, navigating the U.S. housing crisis and strategically refocusing on its core mortgage insurance business while also expanding into related real estate services.
Radian Group Inc. is a financial services company primarily known for providing private mortgage insurance. This insurance protects mortgage lenders (the companies that give out loans) from losing money if a borrower stops making payments on their home loan. Radian's services help make it possible for people to buy homes with smaller down payments, which is a key part of making homeownership more accessible. The company also offers a range of other services related to the mortgage and real estate industries.
This is Radian's main business and where most of its earnings come from. When someone buys a home and puts down less than 20% of the home's price, the mortgage lender often requires private mortgage insurance (PMI). Radian provides this PMI, essentially acting as a safety net for the lender. If the homeowner can no longer make their mortgage payments, Radian steps in to cover a portion of the lender's loss. This segment is crucial for enabling more people to qualify for mortgages and achieve homeownership.
This segment, operating under the homegenius brand, encompasses a variety of services that support the real estate and mortgage transaction process. These services include title insurance (which verifies the legal ownership of a property), property valuation (determining a home's market value), asset management, brokerage services, and mortgage workflow technology. The goal of this segment is to deepen relationships with lenders and diversify Radian's revenue streams beyond just mortgage insurance.
Radian's management is focused on two primary strategies: strengthening its core mortgage insurance business and growing its complementary real estate services. They aim to achieve this by maintaining disciplined underwriting in mortgage insurance, focusing on profitable growth, and leveraging technology to improve efficiency and customer experience in their services segment. Radian is also expanding its reach globally through strategic acquisitions, aiming to become a diversified, multi-line specialty insurer. This approach seeks to balance risk management with opportunities for growth across different markets.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $632.7M. Interest coverage 12.7x.
Radian Group Inc.'s profit covers its interest bill about 12.7 times over. which is weaker than most peers shown here.
Total debt $1.34B Interest coverage 12.67x This is the baseline the peer rows are being compared against.
Total debt $646.87M Interest coverage 27.08x +114% vs RDN Carries about 2.1x more debt cushion than RDN.
Total debt $495.97M Interest coverage 26.14x +106% vs RDN Carries about 2.1x more debt cushion than RDN.
Total debt $426.15M Interest coverage 18.55x +46% vs RDN Carries about 1.5x more debt cushion than RDN.
Total debt $745.23M Interest coverage 18.19x +44% vs RDN Carries about 1.4x more debt cushion than RDN.
Total debt $4.29B Interest coverage 34.64x +173% vs RDN Carries about 2.7x more debt cushion than RDN.
What you should know
The numbers
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Valuation
Profitability
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What you should know