Radian Group Inc.

Valuation Analysis

About the Company

Radian Group Inc., together with its subsidiaries, provides mortgage insurance in the United States. It aggregates, manages, and distributes mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors through private mortgage insurance on residential first-lien mortgage loans. The company also offers private mortgage insurance, specialty insurance, and reinsurance lines. It serves mortgage originators, such as mortgage banks, commercial banks, savings institutions, credit unions, and community banks. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania.

Radian Group Inc. Stock at a Glance

Radian Group Inc. (RDN) is currently trading at $34.66 with a market capitalization of $4.6B. The trailing P/E ratio stands at 8.08x, with a forward P/E of 6.29x. The 52-week range spans from $31.50 to $38.84; the current price is 10.8% below the yearly high. Year-over-year revenue growth stands at +58.8%. The net profit margin stands at 41.02%.

💰 Dividend

Radian Group Inc. pays an annual dividend of $1.02 per share, representing a yield of 2.94%. The payout ratio stands at 23.78%.

📊 Analyst Rating

6 analysts rate Radian Group Inc. (RDN) on consensus: Buy. The average price target is $43.17, implying +24.54% from the current price. Analyst price targets range from $37.00 to $48.00.

Radian Group Inc.: The Investment Case in Detail

Radian Group Inc. (RDN) operates in the Financial Services — specifically Insurance - Specialty — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 58.8% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 82.48%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 41.02%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Valuation in Context

With a PEG ratio of 0.76, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 5.78x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 6.29x is meaningfully below the trailing 8.08x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 24.54% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Radian Group Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.