RED VIOLET INC (RDVT) Stock Fundamental Analysis
USA - NASDAQ:RDVT - US75704L1044 - Common Stock
52.26 USD
+1.21 (+2.37%)
52.26 USD
0 (0%)
Taking everything into account, RDVT scores 6 out of 10 in our fundamental rating. RDVT was compared to 280 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 could make RDVT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RDVT had positive earnings in the past year.
RDVT had a positive operating cash flow in the past year.
Of the past 5 years RDVT 4 years were profitable.
Each year in the past 5 years RDVT had a positive operating cash flow.
1.2 Ratios
RDVT has a Return On Assets of 8.31%. This is amongst the best in the industry. RDVT outperforms 82.86% of its industry peers.
RDVT's Return On Equity of 9.05% is fine compared to the rest of the industry. RDVT outperforms 75.00% of its industry peers.
The Return On Invested Capital of RDVT (7.44%) is better than 78.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RDVT is significantly below the industry average of 11.76%.
The last Return On Invested Capital (7.44%) for RDVT is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 9.05% | ||
| ROIC | 7.44% |
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
RDVT has a Profit Margin of 10.57%. This is in the better half of the industry: RDVT outperforms 73.93% of its industry peers.
In the last couple of years the Profit Margin of RDVT has grown nicely.
RDVT's Operating Margin of 11.93% is fine compared to the rest of the industry. RDVT outperforms 77.50% of its industry peers.
The Gross Margin of RDVT (83.07%) is better than 90.00% of its industry peers.
RDVT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.93% | ||
| PM (TTM) | 10.57% | ||
| GM | 83.07% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDVT is destroying value.
RDVT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RDVT has more shares outstanding
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.
2.2 Solvency
RDVT has an Altman-Z score of 51.31. This indicates that RDVT is financially healthy and has little risk of bankruptcy at the moment.
RDVT has a better Altman-Z score (51.31) than 97.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 51.31 |
ROIC/WACC0.67
WACC11.08%
2.3 Liquidity
RDVT has a Current Ratio of 9.12. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RDVT (9.12) is better than 95.00% of its industry peers.
RDVT has a Quick Ratio of 9.12. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 9.12, RDVT belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.12 | ||
| Quick Ratio | 9.12 |
3. Growth
3.1 Past
RDVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.81%.
The Earnings Per Share has been growing by 114.84% on average over the past years. This is a very strong growth
Looking at the last year, RDVT shows a very strong growth in Revenue. The Revenue has grown by 22.13%.
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)-33.81%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%14.24%
3.2 Future
Based on estimates for the next years, RDVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.16% 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 16.15% on average per year.
EPS Next Y34.99%
EPS Next 2Y21.74%
EPS Next 3Y18.16%
EPS Next 5YN/A
Revenue Next Year19.77%
Revenue Next 2Y16.75%
Revenue Next 3Y16.15%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.80 indicates a quite expensive valuation of RDVT.
The rest of the industry has a similar Price/Earnings ratio as RDVT.
The average S&P500 Price/Earnings ratio is at 27.38. RDVT is valued rather expensively when compared to this.
RDVT is valuated quite expensively with a Price/Forward Earnings ratio of 43.53.
The rest of the industry has a similar Price/Forward Earnings ratio as RDVT.
When comparing the Price/Forward Earnings ratio of RDVT to the average of the S&P500 Index (22.86), we can say RDVT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.8 | ||
| Fwd PE | 43.53 |
4.2 Price Multiples
RDVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDVT is cheaper than 72.50% 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 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.34 | ||
| EV/EBITDA | 33.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RDVT 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)1.62
PEG (5Y)N/A
EPS Next 2Y21.74%
EPS Next 3Y18.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, 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 40.27. RDVT pays more dividend than 90.36% of the companies in the same industry.
With a Dividend Yield of 0.62, RDVT pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 2Y21.74%
EPS Next 3Y18.16%
52.26
+1.21 (+2.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners66.47%
Inst Owner Change7.13%
Ins Owners14.4%
Ins Owner Change-0.22%
Market Cap730.59M
Analysts82.5
Price Target57.12 (9.3%)
Short Float %8.67%
Short Ratio11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)20.37%
Min EPS beat(2)-0.54%
Max EPS beat(2)41.28%
EPS beat(4)1
Avg EPS beat(4)7.26%
Min EPS beat(4)-7.12%
Max EPS beat(4)41.28%
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)1
Avg Revenue beat(2)2.55%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)5.58%
Revenue beat(4)3
Avg Revenue beat(4)3.13%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)6.08%
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)7.69%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)0.66%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.8 | ||
| Fwd PE | 43.53 | ||
| P/S | 8.87 | ||
| P/FCF | 44.34 | ||
| P/OCF | 27.65 | ||
| P/B | 7.59 | ||
| P/tB | 13.71 | ||
| EV/EBITDA | 33.84 |
EPS(TTM)0.92
EY1.76%
EPS(NY)1.2
Fwd EY2.3%
FCF(TTM)1.18
FCFY2.26%
OCF(TTM)1.89
OCFY3.62%
SpS5.89
BVpS6.88
TBVpS3.81
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 9.05% | ||
| ROCE | 9.9% | ||
| ROIC | 7.44% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 42.18% | ||
| OM | 11.93% | ||
| PM (TTM) | 10.57% | ||
| GM | 83.07% | ||
| FCFM | 20% |
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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 98.38% | ||
| Cap/Sales | 12.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.51% | ||
| Profit Quality | 189.23% | ||
| Current Ratio | 9.12 | ||
| Quick Ratio | 9.12 | ||
| Altman-Z | 51.31 |
F-Score6
WACC11.08%
ROIC/WACC0.67
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 Y34.99%
EPS Next 2Y21.74%
EPS Next 3Y18.16%
EPS Next 5YN/A
Revenue 1Y (TTM)22.13%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%14.24%
Revenue Next Year19.77%
Revenue Next 2Y16.75%
Revenue Next 3Y16.15%
Revenue Next 5YN/A
EBIT growth 1Y65.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year299.47%
EBIT Next 3Y77.64%
EBIT Next 5YN/A
FCF growth 1Y399.33%
FCF growth 3Y57.13%
FCF growth 5YN/A
OCF growth 1Y110.06%
OCF growth 3Y38.85%
OCF growth 5Y70.77%