RED VIOLET INC (RDVT) Stock Fundamental Analysis
NASDAQ:RDVT - Nasdaq - US75704L1044 - Common Stock - Currency: USD
RDVT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. Both the health and profitability get an excellent rating, making RDVT a very profitable company, without any liquidiy or solvency issues. RDVT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, RDVT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year RDVT was profitable.
RDVT had a positive operating cash flow in the past year.
RDVT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RDVT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.74%, RDVT belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
RDVT has a Return On Equity of 9.43%. This is in the better half of the industry: RDVT outperforms 77.46% of its industry peers.
RDVT has a better Return On Invested Capital (8.11%) than 82.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDVT is significantly below the industry average of 12.36%.
The 3 year average ROIC (3.09%) for RDVT is below the current ROIC(8.11%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
With a decent Profit Margin value of 10.87%, RDVT is doing good in the industry, outperforming 77.11% of the companies in the same industry.
RDVT's Profit Margin has improved in the last couple of years.
RDVT has a Operating Margin of 12.74%. This is in the better half of the industry: RDVT outperforms 79.93% of its industry peers.
Looking at the Gross Margin, with a value of 82.55%, RDVT belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
In the last couple of years the Gross Margin of RDVT has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RDVT is destroying value.
RDVT has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 56.56 indicates that RDVT is not in any danger for bankruptcy at the moment.
The Altman-Z score of RDVT (56.56) is better than 98.59% of its industry peers.
RDVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 56.56 |
ROIC/WACC0.9
WACC9.02%
2.3 Liquidity
A Current Ratio of 9.00 indicates that RDVT has no problem at all paying its short term obligations.
RDVT has a Current ratio of 9.00. This is amongst the best in the industry. RDVT outperforms 93.31% of its industry peers.
A Quick Ratio of 9.00 indicates that RDVT has no problem at all paying its short term obligations.
The Quick ratio of RDVT (9.00) is better than 93.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9 | ||
| Quick Ratio | 9 |
3. Growth
3.1 Past
RDVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.97%.
The Earnings Per Share has been growing by 114.84% on average over the past years. This is a very strong growth
RDVT shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.29%.
The Revenue has been growing by 19.94% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.97%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)26.29%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%25.66%
3.2 Future
Based on estimates for the next years, RDVT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.80% on average per year.
Based on estimates for the next years, RDVT will show a quite strong growth in Revenue. The Revenue will grow by 16.41% on average per year.
EPS Next Y34.11%
EPS Next 2Y21.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.94%
Revenue Next 2Y16.41%
Revenue Next 3YN/A
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.92, the valuation of RDVT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RDVT.
Compared to an average S&P500 Price/Earnings ratio of 26.34, RDVT is valued quite expensively.
The Price/Forward Earnings ratio is 39.76, which means the current valuation is very expensive for RDVT.
RDVT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RDVT to the average of the S&P500 Index (21.03), we can say RDVT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.92 | ||
| Fwd PE | 39.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDVT is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RDVT is valued a bit cheaper than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.57 | ||
| EV/EBITDA | 31.41 |
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.
A more expensive valuation may be justified as RDVT's earnings are expected to grow with 21.80% in the coming years.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y21.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RDVT has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 16.54, RDVT pays a better dividend. On top of this RDVT pays more dividend than 91.90% of the companies listed in the same industry.
With a Dividend Yield of 0.63, RDVT pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
RDVT does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y21.8%
EPS Next 3YN/A
NASDAQ:RDVT (6/23/2025, 10:57:45 AM)
47.77
+0.32 (+0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners64.41%
Inst Owner Change4.85%
Ins Owners14.21%
Ins Owner Change-0.09%
Market Cap666.87M
Analysts82.86
Price Target53.04 (11.03%)
Short Float %7.21%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)13.04%
PT rev (3m)13.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)18.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.92 | ||
| Fwd PE | 39.76 | ||
| P/S | 8.37 | ||
| P/FCF | 44.57 | ||
| P/OCF | 27.05 | ||
| P/B | 7.26 | ||
| P/tB | 13.57 | ||
| EV/EBITDA | 31.41 |
EPS(TTM)0.92
EY1.93%
EPS(NY)1.2
Fwd EY2.52%
FCF(TTM)1.07
FCFY2.24%
OCF(TTM)1.77
OCFY3.7%
SpS5.71
BVpS6.58
TBVpS3.52
PEG (NY)1.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 56.56 |
F-Score8
WACC9.02%
ROIC/WACC0.9
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)-23.97%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y34.11%
EPS Next 2Y21.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)26.29%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%25.66%
Revenue Next Year15.94%
Revenue Next 2Y16.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y148.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year299.47%
EBIT Next 3YN/A
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%