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RED VIOLET INC (RDVT) Stock Fundamental Analysis

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

39.73  +0.01 (+0.03%)

After market: 39.73 0 (0%)

Fundamental Rating

6

Overall RDVT gets a fundamental rating of 6 out of 10. We evaluated RDVT against 281 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. While showing a medium growth rate, RDVT is valued expensive at the moment. These ratings would make RDVT suitable for quality investing!


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

RDVT had positive earnings in the past year.
In the past year RDVT had a positive cash flow from operations.
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.
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 has a Return On Assets of 7.11%. This is in the better half of the industry: RDVT outperforms 79.79% of its industry peers.
The Return On Equity of RDVT (8.08%) is better than 73.40% of its industry peers.
RDVT's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. RDVT outperforms 78.72% 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 12.03%.
The last Return On Invested Capital (6.75%) for RDVT is above the 3 year average (3.09%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.11%
ROE 8.08%
ROIC 6.75%
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 has a Profit Margin of 9.31%. This is in the better half of the industry: RDVT outperforms 74.47% of its industry peers.
RDVT's Profit Margin has improved in the last couple of years.
RDVT has a Operating Margin of 10.53%. This is in the better half of the industry: RDVT outperforms 77.66% of its industry peers.
RDVT has a Gross Margin of 81.38%. This is amongst the best in the industry. RDVT outperforms 85.82% of its industry peers.
RDVT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.53%
PM (TTM) 9.31%
GM 81.38%
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.
Compared to 1 year ago, RDVT has less shares outstanding
Compared to 5 years ago, RDVT has more shares outstanding
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 29.40 indicates that RDVT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 29.40, RDVT belongs to the best of the industry, outperforming 97.16% of the companies in the same industry.
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 29.4
ROIC/WACC0.64
WACC10.59%
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 4.48. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.48, RDVT belongs to the top of the industry, outperforming 82.27% of the companies in the same industry.
A Quick Ratio of 4.48 indicates that RDVT has no problem at all paying its short term obligations.
RDVT has a Quick ratio of 4.48. This is amongst the best in the industry. RDVT outperforms 82.27% of its industry peers.
Industry RankSector Rank
Current Ratio 4.48
Quick Ratio 4.48
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 -22.12% in the last year.
The Earnings Per Share has been growing by 114.84% on average over the past years. This is a very strong growth
The Revenue has grown by 24.88% in the past year. This is a very strong growth!
Measured over the past years, RDVT shows a quite strong growth in Revenue. The Revenue has been growing by 19.94% on average per year.
EPS 1Y (TTM)-22.12%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%350%
Revenue 1Y (TTM)24.88%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%29.91%

3.2 Future

The Earnings Per Share is expected to grow by 17.32% on average over the next years. This is quite good.
Based on estimates for the next years, RDVT will show a quite strong growth in Revenue. The Revenue will grow by 14.89% on average per year.
EPS Next Y16.23%
EPS Next 2Y17.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.94%
Revenue Next 2Y14.89%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
RDVT Yearly Revenue VS EstimatesRDVT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
RDVT Yearly EPS VS EstimatesRDVT Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 49.05, RDVT can be considered very expensive at the moment.
RDVT's Price/Earnings ratio is in line with the industry average.
RDVT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 42.20, RDVT can be considered very expensive at the moment.
RDVT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.86. RDVT is valued rather expensively when compared to this.
Industry RankSector Rank
PE 49.05
Fwd PE 42.2
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

RDVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDVT is cheaper than 75.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDVT indicates a somewhat cheap valuation: RDVT is cheaper than 68.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 38.51
EV/EBITDA 29.62
RDVT Per share dataRDVT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RDVT does not grow enough to justify the current Price/Earnings ratio.
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 17.32% in the coming years.
PEG (NY)3.02
PEG (5Y)N/A
EPS Next 2Y17.32%
EPS Next 3YN/A

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2

5. Dividend

5.1 Amount

RDVT has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 14.65, RDVT pays a better dividend. On top of this RDVT pays more dividend than 92.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RDVT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.76%

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 2Y17.32%
EPS Next 3YN/A
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 (5/2/2025, 8:20:28 PM)

After market: 39.73 0 (0%)

39.73

+0.01 (+0.03%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners60.85%
Inst Owner Change0.27%
Ins Owners16.81%
Ins Owner Change2.37%
Market Cap554.23M
Analysts82.86
Price Target46.92 (18.1%)
Short Float %6.91%
Short Ratio8.8
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
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)0
Avg EPS beat(2)-5.84%
Min EPS beat(2)-7.12%
Max EPS beat(2)-4.56%
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)3.7%
Min Revenue beat(2)1.32%
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)0%
PT rev (3m)6.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 49.05
Fwd PE 42.2
P/S 7.37
P/FCF 38.51
P/OCF 23.13
P/B 6.4
P/tB 12.21
EV/EBITDA 29.62
EPS(TTM)0.81
EY2.04%
EPS(NY)0.94
Fwd EY2.37%
FCF(TTM)1.03
FCFY2.6%
OCF(TTM)1.72
OCFY4.32%
SpS5.39
BVpS6.21
TBVpS3.26
PEG (NY)3.02
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.11%
ROE 8.08%
ROCE 8.98%
ROIC 6.75%
ROICexc 11.51%
ROICexgc 56.7%
OM 10.53%
PM (TTM) 9.31%
GM 81.38%
FCFM 19.14%
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-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 100.05%
Cap/Sales 12.72%
Interest Coverage 250
Cash Conversion 137.06%
Profit Quality 205.53%
Current Ratio 4.48
Quick Ratio 4.48
Altman-Z 29.4
F-Score7
WACC10.59%
ROIC/WACC0.64
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)-22.12%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%350%
EPS Next Y16.23%
EPS Next 2Y17.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)24.88%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%29.91%
Revenue Next Year15.94%
Revenue Next 2Y14.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y216.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.92%
FCF growth 3Y57.13%
FCF growth 5YN/A
OCF growth 1Y58.98%
OCF growth 3Y38.85%
OCF growth 5Y70.77%