RED VIOLET INC (RDVT) Stock Fundamental Analysis
USA - NASDAQ:RDVT - US75704L1044 - Common Stock
49.82 USD
-0.17 (-0.35%)
49.82 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. RDVT gets an excellent profitability rating and is at the same time showing great financial health properties. RDVT is valied quite expensively at the moment, while it does show a decent growth rate. This makes RDVT very considerable for 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
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.
Looking at the Return On Equity, with a value of 9.05%, RDVT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RDVT has a Return On Invested Capital of 7.44%. This is in the better half of the industry: RDVT outperforms 78.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RDVT is significantly below the industry average of 11.85%.
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's Profit Margin of 10.57% is fine compared to the rest 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.
Looking at the Operating Margin, with a value of 11.93%, RDVT is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
Looking at the Gross Margin, with a value of 83.07%, RDVT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
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
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
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 50.12 indicates that RDVT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 50.12, RDVT belongs to the best of the industry, outperforming 97.14% 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 | 50.12 |
ROIC/WACC0.68
WACC11%
2.3 Liquidity
A Current Ratio of 9.12 indicates that RDVT has no problem at all paying its short term obligations.
RDVT has a better Current ratio (9.12) than 95.00% of its industry peers.
A Quick Ratio of 9.12 indicates that RDVT has no problem at all paying 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
The earnings per share for RDVT have decreased strongly by -33.81% 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
Looking at the last year, RDVT shows a very strong growth in Revenue. The Revenue has grown by 22.13%.
The Revenue has been growing by 19.94% on average over the past years. This is quite good.
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
RDVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.16% yearly.
The Revenue is expected to grow by 16.15% on average over the next years. This is quite good.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
RDVT is valuated quite expensively with a Price/Earnings ratio of 54.15.
RDVT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RDVT is valued quite expensively.
With a Price/Forward Earnings ratio of 41.50, RDVT can be considered very expensive at the moment.
RDVT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. RDVT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.15 | ||
| Fwd PE | 41.5 |
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.
Based on the Price/Free Cash Flow ratio, RDVT is valued a bit cheaper than 64.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.27 | ||
| EV/EBITDA | 32.98 |
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)1.55
PEG (5Y)N/A
EPS Next 2Y21.74%
EPS Next 3Y18.16%
5. Dividend
5.1 Amount
RDVT has a yearly dividend return of 0.62%, which is pretty low.
RDVT's Dividend Yield is rather good when compared to the industry average which is at 40.28. 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 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
5.3 Sustainability
DPN/A
EPS Next 2Y21.74%
EPS Next 3Y18.16%
49.82
-0.17 (-0.35%)
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 Cap696.48M
Analysts82.5
Price Target57.12 (14.65%)
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 | 54.15 | ||
| Fwd PE | 41.5 | ||
| P/S | 8.45 | ||
| P/FCF | 42.27 | ||
| P/OCF | 26.36 | ||
| P/B | 7.24 | ||
| P/tB | 13.07 | ||
| EV/EBITDA | 32.98 |
EPS(TTM)0.92
EY1.85%
EPS(NY)1.2
Fwd EY2.41%
FCF(TTM)1.18
FCFY2.37%
OCF(TTM)1.89
OCFY3.79%
SpS5.89
BVpS6.88
TBVpS3.81
PEG (NY)1.55
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 | 50.12 |
F-Score6
WACC11%
ROIC/WACC0.68
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%