48.1 USD
-0.11 (-0.23%)
Overall RDVT gets a fundamental rating of 7 out of 10. We evaluated RDVT against 278 industry peers in the Software industry. RDVT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RDVT is growing strongly while it is still valued neutral. This is a good combination! This makes RDVT very considerable 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.
- Of the past 5 years RDVT 4 years were profitable.
- In the past 5 years RDVT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of RDVT (10.00%) is better than 82.73% of its industry peers.
- RDVT has a Return On Equity of 11.01%. This is in the better half of the industry: RDVT outperforms 74.46% of its industry peers.
- RDVT's Return On Invested Capital of 8.51% is amongst the best of the industry. RDVT outperforms 80.58% 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 10.74%.
- 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
- RDVT's Profit Margin of 12.96% is fine compared to the rest of the industry. RDVT outperforms 74.10% of its industry peers.
- In the last couple of years the Profit Margin of RDVT has grown nicely.
- The Operating Margin of RDVT (13.78%) is better than 80.22% of its industry peers.
- RDVT has a Gross Margin of 83.50%. This is amongst the best in the industry. RDVT outperforms 89.57% of its industry peers.
- In the last couple of years the Gross Margin of RDVT has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDVT is destroying value.
- The number of shares outstanding for RDVT has been reduced compared to 1 year ago.
- RDVT has more shares outstanding than it did 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 41.21 indicates that RDVT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 41.21, RDVT belongs to the best of the industry, outperforming 98.20% 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 | 41.21 |
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.
- The Current ratio of RDVT (8.39) is better than 93.53% of its industry peers.
- RDVT has a Quick Ratio of 8.39. This indicates that RDVT is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 8.39, RDVT belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
| 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.
- RDVT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 114.84% yearly.
- 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
- RDVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.70% yearly.
- 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.
- 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
- Based on the Price/Earnings ratio of 44.13, the valuation of RDVT can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of RDVT is on the same level as its industry peers.
- 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 36.83, the valuation of RDVT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RDVT is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. RDVT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 36.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RDVT is valued a bit cheaper than 69.42% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RDVT is valued a bit cheaper than the industry average as 64.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.79 | ||
| EV/EBITDA | 28.44 |
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.
- A more expensive valuation may be justified as RDVT's earnings are expected to grow with 15.70% in the coming years.
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 0.62%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.54, RDVT pays a better dividend. On top of this RDVT pays more dividend than 89.21% of the companies listed in the same industry.
- With a Dividend Yield of 0.62, RDVT pays less dividend than the S&P500 average, which is at 1.81.
| 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 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.