Radware Ltd. Ordinary Shares (RDWR)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with the business: Radware sells cybersecurity and application delivery software for cloud and data centers, a necessary but competitive field. The balance sheet is a genuine strength: debt-to-equity is just 0.04, trailing free cash flow is $32.5M, and the Piotroski F-Score is 7/9. However, quality of earnings is weak. In fiscal Q2 2026, revenue was $82.3M, but net income was only $1.7M, a 2.08% margin. FairStock's calculations on the 2026-10-13 close show a P/E of 75.28, P/B of 3.85, EV/EBITDA of 39.83, ROE of 4.67%, and ROCE of 0.87%. The Graham Number is $8.14, implying a margin of safety of -260.69% versus the $29.36 price. That is not a valuation I can call cheap. The company has modest revenue growth, but the data show profit declining sharply, so sales are not converting into owner earnings. A 3.0% FCF yield and a 75 times earnings multiple leave little room for error. The low debt and positive cash flow give it time, but unless margins and returns on capital improve materially, the stock looks priced for a much better business than the current numbers show. I would want to see durable earnings power before treating this as a value opportunity.

In plain English: Radware is a cybersecurity and application delivery software company that helps protect cloud and data-center systems. Its sales are growing, but profits are very thin and the business does not earn much on the money it uses. At $29.36, the shares look expensive compared with the current earnings and cash flow the business produces.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer