Why Radian Group’s latest quarter is getting attention

Radian Group (RDN) is back in focus after first quarter 2026 results comfortably cleared Wall Street revenue expectations, supported by contributions from newly acquired specialty insurer Inigo and continued share repurchases.

Revenue was US$466.34 million, up from US$294.84 million a year earlier, while net income was US$124.09 million compared with US$144.56 million. Reported diluted earnings per share from continuing operations were US$0.93, and total diluted earnings per share were US$0.89.

Radian Group’s share price appears to be building momentum, with a 1-day share price return of 5.29% after the earnings release, a 30-day share price return of 9.94%, and a 1-year total shareholder return of 14.34% that stretches to 95.45% over five years.

If this mix of mortgage insurance and specialty lines has your attention, it could be a good moment to broaden your search and check out 18 top founder-led companies

With Radian trading at US$37.62, sitting below a consensus price target of US$42 and alongside an estimated intrinsic discount, investors may ask whether there is still value on the table or whether the market is already pricing in future growth.

Price-to-Earnings of 8.5x: Is it justified?

Radian Group currently trades on a P/E of 8.5x, which, taken alongside the last close of $37.62, suggests the market prices its earnings more conservatively than many peers.

The P/E ratio compares the share price with earnings per share. It offers a quick read on how much investors are paying for each dollar of profit. For an insurer and mortgage credit risk business like Radian, this often reflects expectations around the stability of future earnings and the perceived risk in the funding and underwriting profile.

On the numbers provided, Radian screens as good value on several fronts. Its P/E of 8.5x is very close to the peer average of 8.6x, yet sits below the estimated fair P/E of 12.8x that the SWS model suggests the market could move toward. It is also well below the broader US Diversified Financial industry average of 18.5x, which implies investors are currently assigning a lower earnings multiple than both the sector and the model indicate.

Result: Price-to-Earnings of 8.5x (UNDERVALUED)

However, you still need to watch for housing market weakness that could pressure mortgage insurance demand and integration risk around the newer specialty insurance lines.

Another way to look at Radian’s value

Price looks appealing on an 8.5x P/E, but the SWS DCF model paints an even starker picture. With the share price at $37.62 and an estimated future cash flow value of $104.14, the model suggests the stock is heavily undervalued. Which signal would you give more weight to?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Radian Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals or a clear opportunity? With both risks and rewards in play, use the numbers here to stress test your own view, and then weigh up the 3 key rewards and 1 important warning sign.

Looking for more investment ideas?

If you are weighing up Radian today, do not stop there. Widen your search with focused stock lists that match the kind of opportunities you want to pursue.

• Target potential bargains by scanning companies that look mispriced on quality and valuation using the 51 high quality undervalued stocks
• Build a steadier income stream by reviewing companies that feature in the 12 dividend fortresses
• Prioritise resilience by concentrating on companies highlighted in the 71 resilient stocks with low risk scores

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.