Radware EBITDA vs. Profit Margin

RDWR Stock  USD 23.84  0.42  1.79%   
Based on the measurements of profitability obtained from Radware's financial statements, Radware may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Radware's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
-19.4 M
Current Value
-18.5 M
Quarterly Volatility
18.6 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of 12/04/2024, Price To Sales Ratio is likely to drop to 2.60. In addition to that, Days Sales Outstanding is likely to drop to 26.90. At this time, Radware's Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 12/04/2024, Total Other Income Expense Net is likely to grow to about 14.6 M, though Net Loss is likely to grow to (20.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.90.8021
Moderately Up
Slightly volatile
For Radware profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Radware to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Radware utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Radware's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Radware over time as well as its relative position and ranking within its peers.
  
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Is Communications Equipment 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 Radware. If investors know Radware 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 Radware 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
(0.29)
Earnings Share
(0.06)
Revenue Per Share
6.379
Quarterly Revenue Growth
0.128
Return On Assets
(0.02)
The market value of Radware is measured differently than its book value, which is the value of Radware that is recorded on the company's balance sheet. Investors also form their own opinion of Radware's value that differs from its market value or its book value, called intrinsic value, which is Radware'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 Radware's market value can be influenced by many factors that don't directly affect Radware'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 Radware's value and its price as these two are different measures arrived at by different means. Investors typically determine if Radware is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radware'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.

Radware Profit Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Radware's current stock value. Our valuation model uses many indicators to compare Radware value to that of its competitors to determine the firm's financial worth.
Radware is rated below average in ebitda category among its peers. It is rated below average in profit margin category among its peers . Radware reported last year EBITDA of (19.44 Million). Comparative valuation analysis is a catch-all technique that is used if you cannot value Radware by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Radware Profit Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Radware

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(19.44 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Radware

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.01) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Radware Profit Margin Comparison

Radware is currently under evaluation in profit margin category among its peers.

Radware Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Radware, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Radware will eventually generate negative long term returns. The profitability progress is the general direction of Radware's change in net profit over the period of time. It can combine multiple indicators of Radware, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income77 K80.8 K
Operating Income-31.7 M-30.1 M
Total Other Income Expense Net13.9 M14.6 M
Net Loss-21.6 M-20.5 M
Income Tax Expense3.8 M2.6 M
Income Before Tax-17.8 M-16.9 M
Net Loss-149.4 K-141.9 K
Net Loss-19.9 M-18.9 M
Interest Income11.5 MM
Net Interest Income11.3 M6.9 M
Change To Netincome34.1 M17.1 M
Net Loss(0.50)(0.48)
Income Quality 0.16  0.17 
Net Income Per E B T 1.22  1.14 

Radware Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Radware. 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 Radware 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 Radware's important profitability drivers and their relationship over time.

Use Radware 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 Radware 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 Radware will appreciate offsetting losses from the drop in the long position's value.

Radware Pair Trading

Radware Pair Trading Analysis

The ability to find closely correlated positions to Radware could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Radware 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 Radware - 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 Radware to buy it.
The correlation of Radware 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 Radware moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Radware 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 Radware 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Radware position

In addition to having Radware 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.

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Recycling
Recycling Theme
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 37 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 Recycling Theme or any other thematic opportunities.
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Additional Tools for Radware Stock Analysis

When running Radware's price analysis, check to measure Radware's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Radware is operating at the current time. Most of Radware's value examination focuses on studying past and present price action to predict the probability of Radware's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Radware's price. Additionally, you may evaluate how the addition of Radware to your portfolios can decrease your overall portfolio volatility.