Radian Return On Asset vs. Return On Equity
| RDN Stock | USD 33.72 0.12 0.36% |
For Radian profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Radian to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Radian Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Radian's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Radian Group over time as well as its relative position and ranking within its peers.
Radian |
Radian's Revenue Breakdown by Earning Segment
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Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Radian. If investors know Radian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Radian listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.01 | Dividend Share 0.96 | Earnings Share 3.86 | Revenue Per Share 8.473 | Quarterly Revenue Growth 0.068 |
The market value of Radian Group is measured differently than its book value, which is the value of Radian that is recorded on the company's balance sheet. Investors also form their own opinion of Radian's value that differs from its market value or its book value, called intrinsic value, which is Radian's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Radian's market value can be influenced by many factors that don't directly affect Radian's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Radian's value and its price as these two are different measures arrived at by different means. Investors typically determine if Radian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radian's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Radian Group Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Radian's current stock value. Our valuation model uses many indicators to compare Radian value to that of its competitors to determine the firm's financial worth. Radian Group is rated fourth in return on asset category among its peers. It is rated below average in return on equity category among its peers reporting about 1.91 of Return On Equity per Return On Asset. At this time, Radian's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Radian's earnings, one of the primary drivers of an investment's value.Radian Return On Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0709 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Radian Return On Equity Comparison
Radian is currently under evaluation in return on equity category among its peers.
Radian Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Radian, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Radian will eventually generate negative long term returns. The profitability progress is the general direction of Radian's change in net profit over the period of time. It can combine multiple indicators of Radian, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -330.9 M | -314.3 M | |
| Operating Income | 767.5 M | 805.9 M | |
| Income Before Tax | 767.5 M | 805.9 M | |
| Total Other Income Expense Net | 5.5 M | 5.7 M | |
| Net Income | 603.1 M | 633.3 M | |
| Income Tax Expense | 164.4 M | 172.6 M | |
| Net Income Applicable To Common Shares | 854.4 M | 427.2 M | |
| Net Income From Continuing Ops | 622.8 M | 468.9 M | |
| Non Operating Income Net Other | -20.5 M | -21.5 M | |
| Interest Income | 76 M | 59.3 M | |
| Net Interest Income | -90.7 M | -95.3 M | |
| Change To Netincome | 343.9 M | 361.1 M | |
| Net Income Per Share | 3.81 | 4.00 | |
| Income Quality | 0.88 | 1.07 | |
| Net Income Per E B T | 0.79 | 0.63 |
Radian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Radian. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Radian position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Radian's important profitability drivers and their relationship over time.
Use Radian in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Radian position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Radian will appreciate offsetting losses from the drop in the long position's value.Radian Pair Trading
Radian Group Pair Trading Analysis
The ability to find closely correlated positions to Radian could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Radian when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Radian - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Radian Group to buy it.
The correlation of Radian is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Radian moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Radian Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Radian can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Radian position
In addition to having Radian in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Robots And Drones
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Robots And Drones Theme or any other thematic opportunities.
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To fully project Radian's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Radian Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Radian's income statement, its balance sheet, and the statement of cash flows.