# RadNet (RDNT.US)

Canonical: https://gigainvestors.com/s/RDNT

Analysis as of: 2026-10-16T07:31:29.670Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $70.41 per share; close as of 2026-10-15.

Estimated value: low $9.37 per share, central $10.01 per share, high $10.54 per share. Buy at or below the central value $10.01 per share. Valuation as of 2026-10-16T07:31:29.670Z; scenarios are not confidence intervals.

Expected annual return: 3.4% at the stated quote. About 3.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.05×

- FY2018: 0.03×

- FY2019: 0.06×

- FY2020: 0.03×

- FY2021: 0.06×

- FY2022: 0.03×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.2%

- ROIC, second-lowest year: 3.6%

- Typical minus recent gross margin: 8.2 pp

- Typical gross margin (annual median): 12.6%

- Recent gross margin (lower of latest and 3-year median): 4.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.7%

- ROIC including acquisitions, ten-year median: 0.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.8%

- FY2017: 8.9%

- FY2018: 8.2%

- FY2019: 6.0%

- FY2020: 3.6%

- FY2021: 6.4%

- FY2022: 3.5%

- FY2023: 7.0%

- FY2024: 7.7%

- FY2025: 4.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.57×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $35M

- Net income, five-year total: $23M

- Return on incremental invested capital: 21.9%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -7.6 pp

- Working capital / revenue, final three-year average: 4.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 5.24×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.2% vs 7.0%

- Per-share earnings: 0.15 to 0.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.2%

- Ordinary dilution, 5-year annual growth: 8.1%

- Market cap gain: $5.0B

- Cumulative retained earnings: $55M

- Diluted shares, 10-year annual growth: 5.2%

- Diluted shares, 5-year annual growth: 8.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -16.3%

- Per-share value change: -$0.12

- Per-share value, starting three-year median: $0.15

- Per-share value, ending three-year median: $0.04

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 0.2%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $670M

- Cumulative net income, 10 years: $62M

- ROIC, first three-year median: 8.2%

- ROIC, last three-year median: 7.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.15

- FY2017: $0.00

- FY2018: $0.66

- FY2019: $0.29

- FY2020: -$0.29

- FY2021: $0.46

- FY2022: $0.19

- FY2023: $0.05

- FY2024: $0.04

- FY2025: -$0.25

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.4%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 18.3%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.97×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.9%

- FY2017: -16.2%

- FY2018: -7.6%

- FY2019: -5.4%

- FY2020: -13.9%

- FY2021: -6.1%

- FY2022: -5.6%

- FY2023: -8.1%

- FY2024: -7.0%

- FY2025: -8.4%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 43.5% a year for ten years · "RadNet Non-GAAP EPS of $0.29, revenue of $622.7M; updates FY2026 outlook" (seekingalpha.com, Aug 2026) · sales +11.5%

Story as of 2026-10-16T09:59:28.975Z; price observation 2026-10-15.

Price needs cash profits to grow 43.5% a year for ten years

- 2025-05-12: RadNet (RDNT) Fell on Lower Than Expected Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/radnet-rdnt-fell-lower-expected-123504772.html))

- 2025-08-11: RadNet beats top-line and bottom-line estimates; updates FY25 outlook ([seekingalpha.com](https://seekingalpha.com/news/4482982-radnet-beats-top-line-and-bottom-line-estimates-updates-fy25-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-10: RadNet raises 2025 revenue guidance as advanced imaging volumes and digital health drive growth ([seekingalpha.com](https://seekingalpha.com/news/4519533-radnet-raises-2025-revenue-guidance-as-advanced-imaging-volumes-and-digital-health-drive?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-11: RadNet misses top-line and bottom-line estimates; updates FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4590289-radnet-misses-top-line-and-bottom-line-estimates-updates-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-10: RadNet Non-GAAP EPS of $0.29, revenue of $622.7M; updates FY2026 outlook ([seekingalpha.com](https://seekingalpha.com/news/4629686-radnet-non-gaap-eps-of-029-revenue-of-6227m-updates-fy2026-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +11.5%; source https://www.sec.gov/Archives/edgar/data/790526/000162828026013337/rdnt-20251231.htm; observed 2026-03-02.

- FY2016: $885M 

- FY2017: $922M 

- FY2018: $975M 

- FY2019: $1.2B 

- FY2020: $1.1B 

- FY2021: $1.3B 

- FY2022: $1.4B 

- FY2023: $1.6B 

- FY2024: $1.8B 

- FY2025: $2.0B 

### Gross margin · FY2025

gross margin 4.5%; source https://www.sec.gov/Archives/edgar/data/790526/000162828026013337/rdnt-20251231.htm; observed 2026-03-02.

- FY2016: 12.3% 

- FY2017: 13.0% 

- FY2018: 11.0% 

- FY2019: 13.4% 

- FY2020: 9.9% 

- FY2021: 14.6% 

- FY2022: 11.6% 

- FY2023: 13.7% 

- FY2024: 13.6% 

- FY2025: 4.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/790526/000162828026013337/rdnt-20251231.htm (filed 2026-03-02); FY2025: revenue 2040210000; grossProfit 90804000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RDNT.US: RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States and internationally. The company operates in two segments, Imaging Centers and Digital Health. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretations of breast, lung, and prostate images, as well as solutions for prostate cancer screening. In addition, it develops and delivers AI-powered health informatics solutions to drive quality, efficiency, and outcomes in imaging and radiology; informatics designed for outpatient radiology; and DeepHealth OS, a cloud-native operating system that helps in the operations of the radiology service. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

### Why customers stay

Margins ranged from 4.5% to 13.7% during 2023–25; it earns 6.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: grossProfit / revenue = 13.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: grossProfit / revenue = 13.6%.

- Source: https://www.sec.gov/Archives/edgar/data/790526/000162828026013337/rdnt-20251231.htm (filed 2026-03-02); FY2025: grossProfit / revenue = 4.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); 10-year return on capital observations [[2016,0.05808720047190625],[2017,0.08877624810686169],[2018,0.08240352311122331],[2019,0.06032867157127904],[2020,0.036338975534990804],[2021,0.06351996418955788],[2022,0.0348355956958719],[2023,0.07014978325298528],[2024,0.07672080507919878],[2025,0.04633344480502659]]; median 0.06192431788041846. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2016: growth capex 0; upkeep 65892000; owner earnings 7948000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2019: growth capex 0; upkeep 101303000; owner earnings 43805930.71672355. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2020: growth capex 0; upkeep 125437000; owner earnings 14433000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2021: growth capex 50034000; upkeep 170661000; owner earnings 24727000. Growth capex / owner earnings = 2.0234561410603793.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2022: growth capex 64688000; upkeep 184724000; cash acquisitions 131402000; owner earnings 10650000. Growth capex plus acquisitions / owner earnings = 18.412206572769954.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: growth capex 0; upkeep 176600000; cash acquisitions 24953000; owner earnings 15937000. Growth capex plus acquisitions / owner earnings = 1.565727552236933.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: growth capex 50232000; upkeep 137838000; cash acquisitions 45157000; owner earnings 2793000. Growth capex plus acquisitions / owner earnings = 34.152882205513784.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Dividend observations: [[2016,492000],[2017,1528000],[2018,1427000],[2019,0],[2020,1577000],[2021,6260000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 10% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RDNT.US SharesStats.PercentInsiders = 9.957 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 43.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Ten-year compound average after fade. Initial solved rate 0.6345677042402016. Price 70.41; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.787780642940404 → FY2025 -0.24806532454264585. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.95 per share

- 2016-11: $6.20 per share

- 2016-12: $6.45 per share

- 2017-01: $5.80 per share

- 2017-02: $5.95 per share

- 2017-03: $5.90 per share

- 2017-04: $6.05 per share

- 2017-05: $7.20 per share

- 2017-06: $7.75 per share

- 2017-07: $7.70 per share

- 2017-08: $10.25 per share

- 2017-09: $11.55 per share

- 2017-10: $10.95 per share

- 2017-11: $10.50 per share

- 2017-12: $10.10 per share

- 2018-01: $10.15 per share

- 2018-02: $10.00 per share

- 2018-03: $14.40 per share

- 2018-04: $13.25 per share

- 2018-05: $12.70 per share

- 2018-06: $15.00 per share

- 2018-07: $13.40 per share

- 2018-08: $13.85 per share

- 2018-09: $15.05 per share

- 2018-10: $14.80 per share

- 2018-11: $12.89 per share

- 2018-12: $10.17 per share

- 2019-01: $13.65 per share

- 2019-02: $13.64 per share

- 2019-03: $12.39 per share

- 2019-04: $12.11 per share

- 2019-05: $12.08 per share

- 2019-06: $13.79 per share

- 2019-07: $14.73 per share

- 2019-08: $13.91 per share

- 2019-09: $14.36 per share

- 2019-10: $15.62 per share

- 2019-11: $19.16 per share

- 2019-12: $20.30 per share

- 2020-01: $22.57 per share

- 2020-02: $20.43 per share

- 2020-03: $10.51 per share

- 2020-04: $14.12 per share

- 2020-05: $17.04 per share

- 2020-06: $15.87 per share

- 2020-07: $15.89 per share

- 2020-08: $14.42 per share

- 2020-09: $15.35 per share

- 2020-10: $14.51 per share

- 2020-11: $18.62 per share

- 2020-12: $19.57 per share

- 2021-01: $17.91 per share

- 2021-02: $18.44 per share

- 2021-03: $21.75 per share

- 2021-04: $22.34 per share

- 2021-05: $26.47 per share

- 2021-06: $33.69 per share

- 2021-07: $36.74 per share

- 2021-08: $31.41 per share

- 2021-09: $29.31 per share

- 2021-10: $31.09 per share

- 2021-11: $26.96 per share

- 2021-12: $30.11 per share

- 2022-01: $25.75 per share

- 2022-02: $24.67 per share

- 2022-03: $22.37 per share

- 2022-04: $19.50 per share

- 2022-05: $20.53 per share

- 2022-06: $17.28 per share

- 2022-07: $20.57 per share

- 2022-08: $20.09 per share

- 2022-09: $20.35 per share

- 2022-10: $19.12 per share

- 2022-11: $19.77 per share

- 2022-12: $18.83 per share

- 2023-01: $21.05 per share

- 2023-02: $23.59 per share

- 2023-03: $25.03 per share

- 2023-04: $27.66 per share

- 2023-05: $28.94 per share

- 2023-06: $32.62 per share

- 2023-07: $33.08 per share

- 2023-08: $33.41 per share

- 2023-09: $28.19 per share

- 2023-10: $26.96 per share

- 2023-11: $33.23 per share

- 2023-12: $34.77 per share

- 2024-01: $36.97 per share

- 2024-02: $37.86 per share

- 2024-03: $48.66 per share

- 2024-04: $48.50 per share

- 2024-05: $58.64 per share

- 2024-06: $58.92 per share

- 2024-07: $59.75 per share

- 2024-08: $66.29 per share

- 2024-09: $69.39 per share

- 2024-10: $65.04 per share

- 2024-11: $81.76 per share

- 2024-12: $69.84 per share

- 2025-01: $65.47 per share

- 2025-02: $55.47 per share

- 2025-03: $49.72 per share

- 2025-04: $52.38 per share

- 2025-05: $57.49 per share

- 2025-06: $56.91 per share

- 2025-07: $54.73 per share

- 2025-08: $71.76 per share

- 2025-09: $76.21 per share

- 2025-10: $75.99 per share

- 2025-11: $82.79 per share

- 2025-12: $71.35 per share

- 2026-01: $70.10 per share

- 2026-02: $69.81 per share

- 2026-03: $55.89 per share

- 2026-04: $56.55 per share

- 2026-05: $55.53 per share

- 2026-06: $61.67 per share

- 2026-07: $63.78 per share

- 2026-08: $75.82 per share

- 2026-09: $68.94 per share

- 2026-10: $70.41 per share

## Annual estimated value (USD per share)

- FY2016: low $2.10 per share, central $2.61 per share, high $3.03 per share

- FY2017: low $2.29 per share, central $2.55 per share, high $2.85 per share

- FY2020: low $3.08 per share, central $3.37 per share, high $3.75 per share

- FY2021: low $5.02 per share, central $5.90 per share, high $6.69 per share

- FY2022: low $4.22 per share, central $4.73 per share, high $5.40 per share

- FY2023: low $7.63 per share, central $8.47 per share, high $9.26 per share

- FY2024: low $3.31 per share, central $3.68 per share, high $4.16 per share

- FY2025: low $10.18 per share, central $10.78 per share, high $11.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/790526/000162828026013337/rdnt-20251231.htm); period 2025-12-31, filed 2026-03-02.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.