Radian Group Intrinsic Value Calculation – RADIAN GROUP Reports Second Quarter Fiscal Year 2023 Earnings Results
August 6, 2023
☀️Earnings Overview
RADIAN GROUP ($NYSE:RDN) revealed its second quarter of fiscal year 2023 earnings results on August 3 2023, for the period ending June 30 2023. Revenue was reported at USD 290.4 million, a 1.2% increase year-over-year. Unfortunately, net income dropped 27.4%, amounting to USD 146.1 million.
Stock Price
The stock opened at $27.1 and closed at $27.5, up by 1.7% from the last closing price of $27.0. This marked the highest closing price of RADIAN GROUP in the last one year. This indicates that investors expect to see further positive results from the company in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Radian Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | 664.45 | 54.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Radian Group. More…
| Operations | Investing | Financing |
| 400.7 | -107.81 | -366.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Radian Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.31k | 3.14k | 26.51 |
Key Ratios Snapshot
Some of the financial key ratios for Radian Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -6.1% | – | 77.0% |
| FCF Margin | ROE | ROA |
| 31.4% | 14.1% | 8.0% |
Analysis – Radian Group Intrinsic Value Calculation
GoodWhale has conducted an analysis of RADIAN GROUP‘s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of RADIAN GROUP shares to be approximately $21.8. Currently, RADIAN GROUP stock is trading at $27.5, which is overvalued by 26.4%. We recommend investors to observe caution when considering investing in RADIAN GROUP. More…
Peers
Radian Group Inc’s primary business is providing private mortgage insurance, reinsurance and mortgage financing solutions in the United States through its principal subsidiaries, Radian Guaranty Inc and Radian Asset Assurance Inc. Radian Group Inc competes with other private mortgage insurers such as Enact Holdings Inc, Tiptree Inc, MGIC Investment Corp.
– Enact Holdings Inc ($NASDAQ:ACT)
Enact Holdings Inc is a holding company that operates through its subsidiaries. The company has a market cap of 3.96B as of 2022 and a ROE of 17.23%. The company’s subsidiaries engage in the business of providing health insurance and other related services to individuals and businesses in the United States.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc is a publicly traded company with a market capitalization of 429.89M as of 2022. The company has a return on equity of 9.05%. Tiptree Inc is engaged in the business of insurance underwriting and reinsurance, as well as investing in real estate and other assets.
– MGIC Investment Corp ($NYSE:MTG)
MGMIC Investment Corp is a holding company that operates through its subsidiaries. The company’s principal business activity is the ownership and management of real estate properties. Its portfolio includes office, retail, and industrial properties in the United States and Europe.
Summary
RADIAN GROUP reported their second quarter of fiscal year 2023 earnings on August 3, 2023. Revenue increased slightly by 1.2% compared to the same period of the prior year, however net income decreased by 27.4%. Investors should take note of the company’s declining profits.
They should further analyze the company’s performance metrics such as cash flow and operating margins to take a more informed investment decision. It is important to have a thorough understanding of RADIAN GROUP’s financials before investing.
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