RADIAN GROUP Reports Strong Second Quarter Earnings for FY2023

August 25, 2023

☀️Earnings Overview

Radian Group ($NYSE:RDN) reported their financial performance for the second quarter of FY2023, which ended on June 30 2023. Revenue for the quarter was USD 290.4 million, a 1.2% increase compared to the same period in the prior year. Net income decreased by 27.4%, totaling USD 146.1 million.

Market Price

On Thursday, RADIAN GROUP reported strong second quarter earnings for FY2023, prompting a rise in their stock price. The stock opened at $27.1 and closed at $27.5, up 1.7% from the previous closing price of $27.0. Pre-tax income also grew significantly, rising 8% year-over-year. This was driven by higher premiums written, which was up 4% year-over-year to $1.2 billion.

The strong earnings reported by RADIAN GROUP demonstrate the strength of the company and its ability to generate solid returns for its shareholders. This is a positive sign for investors, as a strong second quarter performance sets up a favorable outlook for the remainder of the year. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • 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%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • 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
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    As GoodWhale, I conducted an analysis of RADIAN GROUP‘s wellbeing. This makes it an attractive investment opportunity for income-focused investors such as retirees, those looking for a reliable source of income or those who want to diversify their portfolios with income-yielding assets. RADIAN GROUP is strong in dividend, medium in assets and weak in growth and profitability. It has a high health score of 8/10 with regard to its cashflows and debt, which demonstrates its capability to pay off debt and fund future operations. This indicates that RADIAN GROUP will be able to continue to provide regular dividend payments in the foreseeable future. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • 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 earnings results for the second quarter of FY2023, showing total revenue increasing by 1.2% from the same period in the previous year. Unfortunately, net income decreased by 27.4%. This could be attributed to the pandemic environment, which has put a strain on the company’s ability to generate profits.

    Investors should be cautious when evaluating this company, as it appears to be facing headwinds from the current market conditions. Nevertheless, the company’s fundamentals remain strong, so it may be worth considering investing in Radian Group.

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