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Radware Ltd.

Rank #163Value

RDWR · Nasdaq · Technology

Radware Ltd. (RDWR) — Rank #163 by gross profitability (GP/assets 0.36) · ROE 5.8% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001094366 · all metrics point-in-time as of the filing date.

About

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers.

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The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers cloud application protection service, cloud WAF, bot manager, API protection, web DDoS protection, client-side protection, threat intelligence, Kubernetes WAAP, and Alteon integrated WAF; cloud DDoS protection service, web DDoS protection defencepro X, cyber controller, AI SOC Xpert, and firewall-as-a-service; and Alteon, linkproof NG, and SSL inspection services. The company serves healthcare, government, online business, SaaS, education, open banking, MSSP solutions, and financial services through independent distributors, which include value added resellers, original equipment manufacturers, and system integrators. It operates in the United States, the Asia Pacific, Europe, the Middle East, Africa, and internationally. Radware Ltd.

was incorporated in 1996 and is headquartered in Tel Aviv-Yafo, Israel.

Industry
Software - Infrastructure
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

RDWR-23.4% · -5.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$1.25B

P/E (annual)

65.9

P/S (annual)

4.1

P/B

3.6

P/OCF (annual)

24.9

Shareholder Yield

-3.1%

Employees

1,228

Industry

Software - Infrastructure

Exchange

Nasdaq

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.36
Return on equity
5.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.72
Current ratio
1.63×
Net cash
$327.13M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.0%

Growth

1/2 pass
Revenue growth
9.8%
Piotroski F-Score
6 / 9
Share dilution
3.1%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

14.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.1% — per-share value needs a total required return of 17.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.8%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.4%

r = 10% (base)

14.0%

r = 12%

18.1%

Net debt / market cap: -24.7%

Base FCF: $41.6M3Y mean FCF: $33M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

58.5xCheap
43.6xmed 124.9x189.1x

P / S

Price / revenue per share

3.9xFair
3.1xmed 4.5x5.9x

P / B

Price / book value per share

3.4xFair
2.5xmed 3.4x3.9x

P / GP

Price / gross profit per share

4.8xFair
3.8xmed 5.5x7.2x

P / FCF

Price / free cash flow per share

28.3xFair
14.4xmed 28.3x47.1x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.36

Primary signal (Novy-Marx).

7th of 9 SIC 7389 peers

Return on equity

5.8%

Gross margin

80.7%

2nd of 9 SIC 7389 peers

Revenue growth (YoY)

9.8%

RPO growth (YoY)

13.1%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

0.9%

Revenue CAGR (5Y)

3.8%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

21.2%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

2nd of 7 SIC 7389 peers (best = lowest)

Current ratio

1.63×

6th of 9 SIC 7389 peers

Quick ratio

0.80×

Net cash

$327.13M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$41.55M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.05

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Op. Leverage
Startup
Decline
Value
View full financial statements →