RDWRRadware Ltd.
Is the business good?
The checks split: earnings fully cash-backed (6.4×), but margins compressing.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RDWR?
Radware Ltd. earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 3.8%
Operating margin · Software - Infrastructure median 5.8% · fiscal year to FY2025
- Cash conversion
- 6.35×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +3.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 2.5% |
| FY2021 | 6.4% |
| FY2022 | −1.1% |
| FY2023 | −12% |
| FY2024 | −1.4% |
| FY2025 | 3.8% |
Details›
- Gross marginfiscal year to FY2025
- 81%
- Operating marginfiscal year to FY2025
- 3.8%
- Net marginfiscal year to FY2025
- 6.7%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 26%
- Revenue, trailing twelve months
- $302M
- Free cash flow, trailing twelve months
- $42M
- Net income, trailing twelve months
- $20M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #51 of 80 by RyuScore