📊 RDN Key Takeaways
Is Radian Group Inc. (RDN) a Good Investment?
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.
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 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
- 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
- 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
- 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 growth trajectory and stabilization timing
- Underwriting profitability and combined ratios
- Free cash flow sustainability and capital allocation decisions
- Net loss ratio and delinquency rate
- Reserve development (releases vs strengthening)
Radian Group Inc. (RDN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
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. 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.
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 |
|---|---|---|---|
| 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.
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 (BUY) and ChatGPT (BUY) with 76% combined 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. 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: 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. 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 $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 76% 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).