Stock fact sheet · data as of
Radian Group Inc. (RDN): fair value, margin of safety and Wheel Score
Ticker symbol RDN · Financial Services · Insurance - Specialty · United States · Value Quality
Is RDN undervalued?
At 36.59 (close of 5 Nov 2026), RDN trades 55% below the GLS average fair value of 82.19. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Radian Group Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: GLS Growth gives 11.60 while 10 Cap gives 270.96. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, RDN is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 76, growth score 16, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for RDN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 78.32 | +114% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 56.28 | +54% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 59.84 | +64% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 13.75 | -62% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 11.60 | -68% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 270.96 | +641% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 189.90 | +419% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 15.01 | -59% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 44.04 | +20% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 30.88 | -16% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 41.00 | +12% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health RDN scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.7 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are moderate - ROIC 9.9%, ROE 12.2%, ROA 7.2% - with debt at 0.24 times equity and a free-cash-flow yield of 34.6%.
The dividend yield is 2.79% at a payout ratio of 33%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Mortgage Insurance 100% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 9.9% |
|---|---|---|---|
| GLS Moat | 7.7 / 10 | ROE | 12.2% |
| Debt / equity | 0.24 | ROA | 7.2% |
| Free-cash-flow yield | 34.6% | Payout ratio | 33% |
| Institutions | 10 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 82: Good
RDN scores 82 out of 100 on the Wheel Score (Good band, 70-84): it passes all 9 Wheel Trade Filters. How it ranks: value strong, premium strong, moat good, health good, red flags fair, option trading weak, stability good; Option trading (weak) holds it back.
Implied volatility is 51% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,900 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.0M shares a day on a market cap of $4.8B, with a beta of 0.69 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 55% below fair value | |
| Premium | Strong | implied volatility 51% | |
| Moat | Good | moat 7.7/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 330 contracts a day, 2,900 open interest | |
| Stability | Good | beta 0.69, $4.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for RDN in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Specialty
The 12 companies below are the closest to Radian Group Inc. by market cap within the Insurance - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MTG MGIC Investment Corporation | 29.13 | 48.62 | +40% | 82Good | $6.0B |
| ESNT Essent Group Ltd. | 69.34 | 106.71 | +35% | 51Fair | $6.2B |
| ACT Enact Holdings Inc. | 48.24 | 66.67 | +28% | 53Fair | $6.6B |
| FAF First American Financial Corporation | 67.67 | 100.36 | +33% | 50Fair | $6.9B |
| NMIH NMI Holdings, Inc. | 43.96 | 98.38 | +55% | 54Fair | $3.3B |
| AGO Assured Guaranty Ltd. | 72.51 | 187.86 | +61% | 44Weak | $3.2B |
| FNF Fidelity National Financial, Inc. | 43.28 | 112.42 | +62% | 89Prime | $11.6B |
| EIG Employers Holdings, Inc. | 47.58 | 29.35 | -62% | 32Weak | $834M |
| TIPT Tiptree Inc. | 17.95 | 260.65 | +93% | 46Weak | $654M |
| ITIC Investors Title Company | 268.89 | 319.62 | +16% | 29No options | $508M |
| AMSF AMERISAFE, Inc. | 20.34 | 25.98 | +22% | 45Weak | $377M |
| OSG Octave Specialty Group, Inc. | 5.22 | 9.54 | +45% | 40Weak | $235M |
⚖ Compare RDN with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about RDN
Is RDN undervalued right now?
By the GLS models, yes: at 36.59 the stock is 55% below the average fair value of 82.19 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RDN and what does it mean?
RDN scores 82 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RDN?
82.19 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Radian Group Inc. report earnings next?
No upcoming earnings date is recorded for RDN in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does RDN have listed options, and how liquid are they?
Yes. The nightly snapshot found 90 listed contracts with 2,900 open interest across all expiries and implied volatility of 51% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.