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Radware

Nasdaq:RDWR
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDWR
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The last earnings update was 4 days ago. More info.


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RDWR Share Price and Events
7 Day Returns
2.8%
NasdaqGS:RDWR
4.7%
US Communications
0.9%
US Market
1 Year Returns
-5%
NasdaqGS:RDWR
1.1%
US Communications
10.5%
US Market
RDWR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Radware (RDWR) 2.8% 0% -9.2% -5% 77.9% 12.4%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • RDWR underperformed the Communications industry which returned 1.1% over the past year.
  • RDWR underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
RDWR
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Radware undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Radware to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Radware.

NasdaqGS:RDWR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:RDWR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 23%) (1.8%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%)
9.28%

Discounted Cash Flow Calculation for NasdaqGS:RDWR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Radware is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:RDWR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.28%)
2020 56.00 Analyst x1 51.25
2021 63.00 Analyst x1 52.76
2022 62.36 Est @ -1.01% 47.79
2023 62.43 Est @ 0.11% 43.78
2024 62.99 Est @ 0.9% 40.43
2025 63.91 Est @ 1.45% 37.53
2026 65.08 Est @ 1.83% 34.97
2027 66.44 Est @ 2.1% 32.68
2028 67.97 Est @ 2.29% 30.59
2029 69.61 Est @ 2.42% 28.67
Present value of next 10 years cash flows $400.00
NasdaqGS:RDWR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $69.61 × (1 + 2.73%) ÷ (9.28% – 2.73%)
$1,092.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,092.41 ÷ (1 + 9.28%)10
$449.91
NasdaqGS:RDWR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $400.00 + $449.91
$849.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $849.91 / 46.89
$18.12
NasdaqGS:RDWR Discount to Share Price
Calculation Result
Value per share (USD) From above. $18.12
Current discount Discount to share price of $23.37
= -1 x ($23.37 - $18.12) / $18.12
-28.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Radware is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Radware's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Radware's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RDWR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.50
NasdaqGS:RDWR Share Price ** NasdaqGS (2019-11-08) in USD $23.37
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Radware.

NasdaqGS:RDWR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RDWR Share Price ÷ EPS (both in USD)

= 23.37 ÷ 0.50

46.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Radware is overvalued based on earnings compared to the US Communications industry average.
  • Radware is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Radware's expected growth come at a high price?
Raw Data
NasdaqGS:RDWR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
32.6%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NasdaqGS:RDWR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.99x ÷ 32.6%

1.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Radware is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Radware's assets?
Raw Data
NasdaqGS:RDWR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $8.26
NasdaqGS:RDWR Share Price * NasdaqGS (2019-11-08) in USD $23.37
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:RDWR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RDWR Share Price ÷ Book Value per Share (both in USD)

= 23.37 ÷ 8.26

2.83x

* Primary Listing of Radware.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Radware is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Radware's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Radware has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Radware expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Radware expected to grow at an attractive rate?
  • Radware's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Radware's earnings growth is expected to exceed the United States of America market average.
  • Radware's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RDWR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RDWR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 32.6%
NasdaqGS:RDWR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.3%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:RDWR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RDWR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 347 1
2021-12-31 307 71 47 2
2020-12-31 278 66 30 4
2019-12-31 252 50 23 2
2019-11-10
NasdaqGS:RDWR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 249 75 23
2019-06-30 244 63 19
2019-03-31 241 61 17
2018-12-31 234 49 12
2018-09-30 229 32 6
2018-06-30 223 29 1
2018-03-31 217 37 -4
2017-12-31 211 31 -7
2017-09-30 205 47 -12
2017-06-30 198 40 -13
2017-03-31 197 36 -10
2016-12-31 197 38 -9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Radware's earnings are expected to grow significantly at over 20% yearly.
  • Radware's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:RDWR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Radware Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RDWR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.97 0.97 0.97 1.00
2020-12-31 0.62 0.83 0.40 2.00
2019-12-31 0.48 0.70 0.26 2.00
2019-11-10
NasdaqGS:RDWR Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.50
2019-06-30 0.41
2019-03-31 0.37
2018-12-31 0.26
2018-09-30 0.13
2018-06-30 0.03
2018-03-31 -0.10
2017-12-31 -0.17
2017-09-30 -0.27
2017-06-30 -0.29
2017-03-31 -0.23
2016-12-31 -0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Radware will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Radware's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Radware has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Radware performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Radware's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Radware's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Radware's 1-year earnings growth exceeds its 5-year average (292% vs -20.3%)
  • Radware's earnings growth has exceeded the US Communications industry average in the past year (292% vs 21.7%).
Earnings and Revenue History
Radware's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Radware Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RDWR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 248.53 23.18 126.00 59.68
2019-06-30 244.43 19.17 125.56 59.01
2019-03-31 241.27 17.10 126.08 58.24
2018-12-31 234.40 11.74 126.97 57.67
2018-09-30 229.04 5.91 127.92 59.23
2018-06-30 223.32 1.32 127.87 59.48
2018-03-31 216.99 -4.41 126.59 59.86
2017-12-31 211.37 -7.49 124.02 59.43
2017-09-30 204.63 -11.75 122.13 56.17
2017-06-30 198.44 -12.72 119.36 54.56
2017-03-31 197.07 -9.99 118.52 52.55
2016-12-31 196.59 -8.66 117.61 51.73
2016-09-30 200.13 -2.26 114.29 52.47
2016-06-30 201.33 0.85 113.26 52.22
2016-03-31 207.77 9.36 109.98 51.46
2015-12-31 216.57 18.57 106.98 49.99
2015-09-30 222.34 23.47 104.44 48.26
2015-06-30 231.08 30.57 104.92 46.74
2015-03-31 228.11 27.33 106.86 45.47
2014-12-31 221.89 24.95 106.60 44.08
2014-09-30 213.89 21.51 106.17 43.56
2014-06-30 205.11 16.65 103.79 42.40
2014-03-31 198.88 17.65 98.57 41.67
2013-12-31 193.00 18.06 94.21 40.98
2013-09-30 189.81 21.44 93.45 39.23
2013-06-30 189.30 26.76 89.57 38.21
2013-03-31 189.28 29.37 87.80 36.90
2012-12-31 189.17 31.76 86.34 36.19

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Radware has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Radware used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • Radware has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Radware's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Radware has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Radware's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Radware's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Radware is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Radware's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Radware's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Radware has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Radware Company Filings, last reported 1 month ago.

NasdaqGS:RDWR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 386.81 0.00 221.94
2019-06-30 381.15 0.00 254.06
2019-03-31 380.23 0.00 312.71
2018-12-31 363.96 0.00 316.40
2018-09-30 355.08 0.00 299.87
2018-06-30 342.17 0.00 252.53
2018-03-31 329.71 0.00 195.42
2017-12-31 315.36 0.00 200.96
2017-09-30 302.93 0.00 165.79
2017-06-30 300.72 0.00 156.27
2017-03-31 300.04 0.00 169.52
2016-12-31 299.76 0.00 226.09
2016-09-30 308.69 0.00 207.00
2016-06-30 308.47 0.00 221.73
2016-03-31 312.15 0.00 199.98
2015-12-31 319.12 0.00 130.67
2015-09-30 321.87 0.00 91.69
2015-06-30 343.85 0.00 80.64
2015-03-31 325.45 0.00 76.74
2014-12-31 333.70 0.00 104.42
2014-09-30 314.75 0.00 137.75
2014-06-30 305.62 0.00 164.81
2014-03-31 303.03 0.00 166.76
2013-12-31 294.12 0.00 134.83
2013-09-30 289.43 0.00 90.89
2013-06-30 282.36 0.00 54.84
2013-03-31 279.54 0.00 62.78
2012-12-31 271.23 0.00 88.21
  • Radware has no debt.
  • Radware has not taken on any debt in the past 5 years.
  • Radware has no debt, it does not need to be covered by operating cash flow.
  • Radware has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Radware's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Radware has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Radware's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Radware dividends.
If you bought $2,000 of Radware shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Radware's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Radware's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:RDWR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RDWR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2019-11-10

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Radware has not reported any payouts.
  • Unable to verify if Radware's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Radware's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Radware has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Radware's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Radware afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Radware has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Radware's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Roy Zisapel
COMPENSATION $3,236,000
AGE 48
TENURE AS CEO 23.5 years
CEO Bio

Mr. Roy Zisapel has been President, Chief Executive Officer, and Director of Radware Ltd. since its inception in May 1996. He serves as Chief Executive Officer at Radware Canada Holdings Inc. Before founding Radware in May 1996. Mr. Zisapel directed research and development projects for RND Networks Ltd. Prior to this, Mr. Zisapel led algorithmic research for Madge Networks' LAN ATM switch. Mr. Zisapel began his career as a software engineer at Algotech Systems, a medical imaging solutions company. Mr. Zisapel graduated summa cum laude with a B.Sc. degree in mathematics and computer science from Tel Aviv University, where he was honored with the International Wolf Prize for research students. Additionally, Mr. Zisapel holds several U.S. patents and patent applications in the areas of global load balancing, network proximity, traffic redirection and multi-homing.

CEO Compensation
  • Roy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Roy's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Radware management team in years:

3.8
Average Tenure
51
Average Age
  • The tenure for the Radware management team is about average.
Management Team

Yehuda Zisapel

TITLE
Co-Founder & Chairman
AGE
77

Roy Zisapel

TITLE
Co-Founder
COMPENSATION
$3M
AGE
48
TENURE
23.5 yrs

Doron Abramovitch

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
51
TENURE
4.2 yrs

Gabi Malka

TITLE
Chief Operating Officer
COMPENSATION
$682K
AGE
43
TENURE
5.7 yrs

David Aviv

TITLE
CTO & VP of Advanced Services
COMPENSATION
$491K
AGE
63
TENURE
3.8 yrs

Anat Earon-Heilborn

TITLE
Vice President of Investor Relations

Hannah Mordechai

TITLE
VP & General Counsel
TENURE
0.3 yrs

Anna Convery-Pelletier

TITLE
Chief Marketing Officer
COMPENSATION
$908K
AGE
50
TENURE
2.9 yrs

Riki Goldreich

TITLE
Vice President of Global Human Resources

Sharon Trachtman

TITLE
Chief Business Operation Officer
AGE
53
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Radware board of directors in years:

10.1
Average Tenure
71
Average Age
  • The average tenure for the Radware board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Yehuda Zisapel

TITLE
Co-Founder & Chairman
AGE
77
TENURE
10 yrs

Roy Zisapel

TITLE
Co-Founder
COMPENSATION
$3M
AGE
48
TENURE
23.5 yrs

Tibor Rubner

TITLE
Independent Director
AGE
79
TENURE
10.1 yrs

Yair Tauman

TITLE
Independent Director
AGE
71
TENURE
9.1 yrs

Yael Langer

TITLE
Director
AGE
54
TENURE
10.3 yrs

Avraham Asheri

TITLE
Independent Director
AGE
81
TENURE
10.3 yrs

Joel Maryles

TITLE
Independent Director
AGE
60
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Feb 19 Sell Yehuda Zisapel Individual 12. Feb 19 15. Feb 19 -58,214 $24.50 $-1,421,925
X
Management checks
We assess Radware's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Radware has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Radware Ltd. (NASDAQ:RDWR) Focus On Improving This Fundamental Metric?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Radware: 5.0% = US$19m ÷ US$381m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Radware's Debt And Its 5.0% Return On Equity Shareholders will be pleased to learn that Radware has not one iota of net debt! … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Here's Why We Think Radware (NASDAQ:RDWR) Is Well Worth Watching

So if you're like me, you might be more interested in profitable, growing companies, like Radware (NASDAQ:RDWR). … It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. … That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company.

Simply Wall St -

If You Had Bought Radware (NASDAQ:RDWR) Stock Three Years Ago, You Could Pocket A 105% Gain Today

View our latest analysis for Radware To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Radware moved from a loss to profitability.

Simply Wall St -

Is There Now An Opportunity In Radware Ltd. (NASDAQ:RDWR)?

Let’s take a look at Radware’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, Radware seems to be fairly priced at around 10.17% above my intrinsic value, which means if you buy Radware today, you’d be paying a relatively reasonable price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Should You Worry About Radware Ltd.’s (NASDAQ:RDWR) ROCE?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Radware: 0.031 = US$14m ÷ (US$583m - US$128m) (Based on the trailing twelve months to March 2019.) So, Radware has an ROCE of 3.1%. … With a very reasonable level of current liabilities, so the impact on ROCE is fairly minimal.

Simply Wall St -

Is Radware Ltd. (NASDAQ:RDWR) Excessively Paying Its CEO?

has a market capitalization of US$1.1b, and pays its CEO total annual compensation worth US$3.2m. … We think total compensation is more important but we note that the CEO salary is lower, at US$420k. … Arguably, business quality is much more important than CEO compensation levels.

Simply Wall St -

Estimating The Intrinsic Value Of Radware Ltd. (NASDAQ:RDWR)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $39.00 $53.00 $61.00 $65.65 $69.70 $73.28 $76.51 $79.50 $82.32 $85.04 Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 7.63% Est @ 6.16% Est @ 5.13% Est @ 4.41% Est @ 3.91% Est @ 3.55% Est @ 3.31% Present Value ($, Millions) Discounted @ 9.04% $35.77 $44.58 $47.05 $46.44 $45.22 $43.60 $41.74 $39.78 $37.78 $35.79 Present Value of 10-year Cash Flow (PVCF)= $417.74m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$85m × (1 + 2.7%) ÷ (9% – 2.7%) = US$1.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$1.4b ÷ ( 1 + 9%)10 = $582.68m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.00b.

Simply Wall St -

Is Radware Ltd.'s (NASDAQ:RDWR) 3.2% ROE Worse Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.032 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Introducing Radware (NASDAQ:RDWR), The Stock That Zoomed 147% In The Last Three Years

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. … (NASDAQ:RDWR) share price is 147% higher than it was three years ago. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Simply Wall St -

At US$26.35, Is It Time To Put Radware Ltd. (NASDAQ:RDWR) On Your Watch List?

received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Radware’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Company Info

Description

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack prevention device; AppWall, a Web application firewall; and DefenseFlow, a cyber-command and control application. It also provides Alteon D Line, an application delivery controller/load balancer for Web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications. In addition, the company offers Security Updates Subscription, which provides security updates to protect customers against the latest threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks; Alteon Global Elastic License that captures application lifecycle for large ADC deployments; APSolute Vision, a management and monitoring tool for company’s application delivery and cyber security solutions; and MSSP Portal, a DDoS detection and mitigation service portal. Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

Details
Name: Radware Ltd.
RDWR
Exchange: NasdaqGS
Founded: 1996
$1,095,930,214
46,894,746
Website: http://www.radware.com
Address: Radware Ltd.
22 Raoul Wallenberg Street,
Tel Aviv,
6971917,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RDWR Ordinary Shares Nasdaq Global Select US USD 30. Sep 1999
DB RWA Ordinary Shares Deutsche Boerse AG DE EUR 30. Sep 1999
Number of employees
Current staff
Staff numbers
905
Radware employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:42
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/07
Last earnings filing: 2019/11/06
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.