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RED VIOLET INC (RDVT) Stock Fundamental Analysis

NASDAQ:RDVT - Nasdaq - US75704L1044 - Common Stock - Currency: USD

43.61  -0.41 (-0.93%)

Fundamental Rating

7

Overall RDVT gets a fundamental rating of 7 out of 10. We evaluated RDVT against 283 industry peers in the Software industry. RDVT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RDVT has a correct valuation and a medium growth rate. These ratings could make RDVT a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year RDVT was profitable.
RDVT had a positive operating cash flow in the past year.
Of the past 5 years RDVT 4 years were profitable.
RDVT had a positive operating cash flow in each of the past 5 years.
RDVT Yearly Net Income VS EBIT VS OCF VS FCFRDVT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M -20M

1.2 Ratios

RDVT's Return On Assets of 8.74% is amongst the best of the industry. RDVT outperforms 83.39% of its industry peers.
With a decent Return On Equity value of 9.43%, RDVT is doing good in the industry, outperforming 77.03% of the companies in the same industry.
RDVT's Return On Invested Capital of 8.11% is amongst the best of the industry. RDVT outperforms 80.21% of its industry peers.
RDVT had an Average Return On Invested Capital over the past 3 years of 3.09%. This is significantly below the industry average of 12.04%.
The last Return On Invested Capital (8.11%) for RDVT is above the 3 year average (3.09%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.74%
ROE 9.43%
ROIC 8.11%
ROA(3y)7.49%
ROA(5y)2.05%
ROE(3y)8.22%
ROE(5y)1.98%
ROIC(3y)3.09%
ROIC(5y)N/A
RDVT Yearly ROA, ROE, ROICRDVT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80 -100

1.3 Margins

RDVT's Profit Margin of 10.87% is fine compared to the rest of the industry. RDVT outperforms 74.56% of its industry peers.
In the last couple of years the Profit Margin of RDVT has grown nicely.
With a decent Operating Margin value of 12.74%, RDVT is doing good in the industry, outperforming 78.09% of the companies in the same industry.
RDVT has a better Gross Margin (82.55%) than 89.40% of its industry peers.
RDVT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.74%
PM (TTM) 10.87%
GM 82.55%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y83.83%
PM growth 5YN/A
GM growth 3Y2.95%
GM growth 5Y6.46%
RDVT Yearly Profit, Operating, Gross MarginsRDVT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RDVT is destroying value.
The number of shares outstanding for RDVT has been reduced compared to 1 year ago.
The number of shares outstanding for RDVT has been increased compared to 5 years ago.
RDVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RDVT Yearly Shares OutstandingRDVT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
RDVT Yearly Total Debt VS Total AssetsRDVT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 52.59 indicates that RDVT is not in any danger for bankruptcy at the moment.
The Altman-Z score of RDVT (52.59) is better than 97.17% of its industry peers.
There is no outstanding debt for RDVT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 52.59
ROIC/WACC0.71
WACC11.36%
RDVT Yearly LT Debt VS Equity VS FCFRDVT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M

2.3 Liquidity

RDVT has a Current Ratio of 9.00. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
RDVT has a Current ratio of 9.00. This is amongst the best in the industry. RDVT outperforms 94.70% of its industry peers.
RDVT has a Quick Ratio of 9.00. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RDVT (9.00) is better than 94.70% of its industry peers.
Industry RankSector Rank
Current Ratio 9
Quick Ratio 9
RDVT Yearly Current Assets VS Current LiabilitesRDVT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

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6

3. Growth

3.1 Past

The earnings per share for RDVT have decreased strongly by -33.81% in the last year.
RDVT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 114.84% yearly.
RDVT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.89%.
RDVT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.94% yearly.
EPS 1Y (TTM)-33.81%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)24.89%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%14.24%

3.2 Future

The Earnings Per Share is expected to grow by 18.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.15% on average over the next years. This is quite good.
EPS Next Y34.11%
EPS Next 2Y21.8%
EPS Next 3Y18.16%
EPS Next 5YN/A
Revenue Next Year18.87%
Revenue Next 2Y16.41%
Revenue Next 3Y16.15%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
RDVT Yearly Revenue VS EstimatesRDVT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M 80M 100M
RDVT Yearly EPS VS EstimatesRDVT Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 47.40 indicates a quite expensive valuation of RDVT.
RDVT's Price/Earnings is on the same level as the industry average.
RDVT is valuated expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 36.29, RDVT can be considered very expensive at the moment.
RDVT's Price/Forward Earnings is on the same level as the industry average.
RDVT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.24.
Industry RankSector Rank
PE 47.4
Fwd PE 36.29
RDVT Price Earnings VS Forward Price EarningsRDVT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RDVT is valued a bit cheaper than 73.14% of the companies in the same industry.
RDVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDVT is cheaper than 65.72% of the companies in the same industry.
Industry RankSector Rank
P/FCF 40.69
EV/EBITDA 29.01
RDVT Per share dataRDVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

RDVT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RDVT has a very decent profitability rating, which may justify a higher PE ratio.
RDVT's earnings are expected to grow with 18.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y21.8%
EPS Next 3Y18.16%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.69%, RDVT is not a good candidate for dividend investing.
RDVT's Dividend Yield is rather good when compared to the industry average which is at 48.86. RDVT pays more dividend than 91.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RDVT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.69%

5.2 History

RDVT is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
RDVT Yearly Dividends per shareRDVT Yearly Dividends per shareYearly Dividends per share 2025 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

DPN/A
EPS Next 2Y21.8%
EPS Next 3Y18.16%
RDVT Yearly Income VS Free CF VS DividendRDVT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M -20M

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RED VIOLET INC

NASDAQ:RDVT (8/19/2025, 11:47:07 AM)

43.61

-0.41 (-0.93%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-04 2025-11-04
Inst Owners66.47%
Inst Owner Change7.09%
Ins Owners14.4%
Ins Owner Change-0.1%
Market Cap608.80M
Analysts82.86
Price Target57.12 (30.98%)
Short Float %8.28%
Short Ratio9.22
Dividend
Industry RankSector Rank
Dividend Yield 0.69%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date01-31 2025-01-31 (0.3)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.08%
Min EPS beat(2)-7.12%
Max EPS beat(2)41.28%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.83%
Min Revenue beat(2)5.58%
Max Revenue beat(2)6.08%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.69%
PT rev (3m)21.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.53%
Valuation
Industry RankSector Rank
PE 47.4
Fwd PE 36.29
P/S 7.64
P/FCF 40.69
P/OCF 24.69
P/B 6.63
P/tB 12.39
EV/EBITDA 29.01
EPS(TTM)0.92
EY2.11%
EPS(NY)1.2
Fwd EY2.76%
FCF(TTM)1.07
FCFY2.46%
OCF(TTM)1.77
OCFY4.05%
SpS5.71
BVpS6.58
TBVpS3.52
PEG (NY)1.39
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.74%
ROE 9.43%
ROCE 10.8%
ROIC 8.11%
ROICexc 12.84%
ROICexgc 45.74%
OM 12.74%
PM (TTM) 10.87%
GM 82.55%
FCFM 18.78%
ROA(3y)7.49%
ROA(5y)2.05%
ROE(3y)8.22%
ROE(5y)1.98%
ROIC(3y)3.09%
ROIC(5y)N/A
ROICexc(3y)5.18%
ROICexc(5y)N/A
ROICexgc(3y)25.46%
ROICexgc(5y)N/A
ROCE(3y)4.11%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y83.83%
PM growth 5YN/A
GM growth 3Y2.95%
GM growth 5Y6.46%
F-Score8
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 98.5%
Cap/Sales 12.17%
Interest Coverage 250
Cash Conversion 123.34%
Profit Quality 172.79%
Current Ratio 9
Quick Ratio 9
Altman-Z 52.59
F-Score8
WACC11.36%
ROIC/WACC0.71
Cap/Depr(3y)113.92%
Cap/Depr(5y)114.58%
Cap/Sales(3y)14.83%
Cap/Sales(5y)14.55%
Profit Quality(3y)278.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.81%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y34.11%
EPS Next 2Y21.8%
EPS Next 3Y18.16%
EPS Next 5YN/A
Revenue 1Y (TTM)24.89%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%14.24%
Revenue Next Year18.87%
Revenue Next 2Y16.41%
Revenue Next 3Y16.15%
Revenue Next 5YN/A
EBIT growth 1Y148.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year299.47%
EBIT Next 3Y77.64%
EBIT Next 5YN/A
FCF growth 1Y544.91%
FCF growth 3Y57.13%
FCF growth 5YN/A
OCF growth 1Y113.29%
OCF growth 3Y38.85%
OCF growth 5Y70.77%