Radian Group Inc. (RDN) AI Stock Analysis

Radian Group Inc., founded in 1977 and headquartered in Wayne, Pennsylvania, operates in the mortgage and real estate services sector across the United States. Its Mortgage segment provides credit-related insurance coverage, primarily private mortgage insurance for residential first-lien mortgage loans, alongside credit risk management solutions and contract underwriting for mortgage originators. The Homegenius segment delivers real estate services, including title insurance and non-insurance options, tax and title data management, document retrieval, property valuation products, asset management, and real estate technology solutions for consumers, lenders, and government-sponsored enterprises.

Radian Group reported annual revenue of $1.25B in FY2025, representing a decline of 3.4% from $1.29B in FY2024. Operating margin remained stable at 61.2% in FY2025 compared to 59.8% in FY2024, while net income totaled $582.8M with a net margin of 46.7%. Earnings per share reached $4.23 in FY2025, up from $4.14 in FY2024 and $3.17 in FY2021. For the trailing twelve months, revenue reached $1.65B, supported by 93.5% year-over-year quarterly revenue growth in the period ending June 30, 2026. However, quarterly earnings declined 16.2% year-over-year.

As of June 30, 2026, Radian Group held $119.0M in cash and short-term investments against $1.23B in total debt, resulting in net debt of $1.11B. Shareholders' equity was $4.81B and total assets stood at $10.66B, supporting a debt-to-equity ratio of 0.26 and a current ratio of 0.03. In FY2025, operating cash flow recovered to $119.9M and free cash flow was $115.7M, following free cash flow of -$666.7M in FY2024. Capital expenditures were $4.2M, while the company allocated $431.9M to share buybacks and $145.6M to dividends.

Radian Group carries a market capitalization of $4.50B and an enterprise value of $5.69B. At a trailing P/E of 8.4x and a forward P/E of 6.3x, the stock trades below the median of its US-listed Financial Services peers, which sit at 12.1x trailing and 10.8x forward. Its price-to-sales ratio of 2.7x also trades below the peer median of 3.2x, while its PEG ratio stands at 0.76. Over the past year, the stock returned 7.1%, trailing the S&P 500's return of 16.8%. Over five years, RDN gained 65.1% versus 83.0% for the S&P 500.

Radian Group pays a quarterly dividend with an annualized forward payout of $1.02 per share, representing a 3.00% dividend yield as of October 16, 2026. The payout ratio is 22.2%, and the company has paid dividends for 34 consecutive years. Over the past five years, the dividend grew at an annualized rate of 15.3%, with the last ex-dividend date on August 24, 2026.

Wall Street coverage includes 3 Strong Buy, 2 Buy, and 1 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $44.67, which is 31.2% above the last close of $34.04. Consensus estimates project FY2026 revenue of $2.31B and EPS of $4.89, followed by $2.48B in revenue and EPS of $5.22 for FY2027. Radian Group beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Radian Group Inc. (RDN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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