48.21 USD
-1.77 (-3.54%)
48.21 USD
0 (0%)
Overall RDVT gets a fundamental rating of 7 out of 10. We evaluated RDVT against 277 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 not priced too expensively while it is growing strongly. 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
- 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.
1.2 Ratios
- RDVT has a better Return On Assets (10.00%) than 82.67% of its industry peers.
- Looking at the Return On Equity, with a value of 11.01%, RDVT is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
- RDVT has a Return On Invested Capital of 8.51%. This is amongst the best in the industry. RDVT outperforms 80.51% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RDVT is significantly below the industry average of 10.78%.
- The 3 year average ROIC (3.09%) for RDVT is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 11.01% | ||
| ROIC | 8.51% |
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
- Looking at the Profit Margin, with a value of 12.96%, RDVT is in the better half of the industry, outperforming 74.01% of the companies in the same industry.
- RDVT's Profit Margin has improved in the last couple of years.
- RDVT's Operating Margin of 13.78% is amongst the best of the industry. RDVT outperforms 80.51% of its industry peers.
- RDVT has a better Gross Margin (83.50%) than 89.53% of its industry peers.
- RDVT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.78% | ||
| PM (TTM) | 12.96% | ||
| GM | 83.5% |
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.
- 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
- An Altman-Z score of 42.66 indicates that RDVT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 42.66, RDVT belongs to the top of the industry, outperforming 98.19% of the companies in the same industry.
- 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 | 42.66 |
ROIC/WACC0.77
WACC11.1%
2.3 Liquidity
- RDVT has a Current Ratio of 8.39. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
- RDVT has a Current ratio of 8.39. This is amongst the best in the industry. RDVT outperforms 93.50% of its industry peers.
- A Quick Ratio of 8.39 indicates that RDVT has no problem at all paying its short term obligations.
- RDVT's Quick ratio of 8.39 is amongst the best of the industry. RDVT outperforms 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 8.39 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 47.30% over the past year.
- 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 22.27%.
- 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)47.3%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%77.27%
Revenue 1Y (TTM)22.27%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%21.13%
3.2 Future
- The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
- RDVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.40% yearly.
EPS Next Y45.44%
EPS Next 2Y26.98%
EPS Next 3Y15.7%
EPS Next 5YN/A
Revenue Next Year20.57%
Revenue Next 2Y17.38%
Revenue Next 3Y16.4%
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
- The Price/Earnings ratio is 44.23, which means the current valuation is very expensive for RDVT.
- The rest of the industry has a similar Price/Earnings ratio as RDVT.
- RDVT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 36.91, the valuation of RDVT can be described as expensive.
- RDVT's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of RDVT to the average of the S&P500 Index (24.26), we can say RDVT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.23 | ||
| Fwd PE | 36.91 |
4.2 Price Multiples
- 68.95% of the companies in the same industry are more expensive than RDVT, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDVT indicates a somewhat cheap valuation: RDVT is cheaper than 64.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.87 | ||
| EV/EBITDA | 29.55 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of RDVT may justify a higher PE ratio.
- RDVT's earnings are expected to grow with 15.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y26.98%
EPS Next 3Y15.7%
5. Dividend
5.1 Amount
- RDVT has a yearly dividend return of 0.60%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.52, RDVT pays a better dividend. On top of this RDVT pays more dividend than 89.17% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RDVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 2Y26.98%
EPS Next 3Y15.7%
RED VIOLET INC / RDVT FAQ
Can you provide the ChartMill fundamental rating for RED VIOLET INC?
ChartMill assigns a fundamental rating of 7 / 10 to RDVT.
What is the valuation status for RDVT stock?
ChartMill assigns a valuation rating of 4 / 10 to RED VIOLET INC (RDVT). This can be considered as Fairly Valued.
How profitable is RED VIOLET INC (RDVT) stock?
RED VIOLET INC (RDVT) has a profitability rating of 8 / 10.
What is the financial health of RED VIOLET INC (RDVT) stock?
The financial health rating of RED VIOLET INC (RDVT) is 9 / 10.
Can you provide the expected EPS growth for RDVT stock?
The Earnings per Share (EPS) of RED VIOLET INC (RDVT) is expected to grow by 45.44% in the next year.