Radian Group Inc. Stock Sell Recommendation Reiterated (RDN)
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- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Thrifts & Mortgage Finance industry average. The net income has decreased by 10.8% when compared to the same quarter one year ago, dropping from -$169.23 million to -$187.50 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, RADIAN GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to -$165.97 million or 7.46% when compared to the same quarter last year. Despite a decrease in cash flow RADIAN GROUP INC is still fairing well by exceeding its industry average cash flow growth rate of -31.03%.
- RDN, with its very weak revenue results, has greatly underperformed against the industry average of 39.2%. Since the same quarter one year prior, revenues plummeted by 76.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- RADIAN GROUP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RADIAN GROUP INC swung to a loss, reporting -$3.41 versus $2.25 in the prior year. This year, the market expects an improvement in earnings (-$1.26 versus -$3.41).
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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