49.98 USD
+0.77 (+1.56%)
49.98 USD
0 (0%)
RDVT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, RDVT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year RDVT was profitable.
- In the past year RDVT had a positive cash flow from operations.
- 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
- RDVT's Return On Assets of 10.00% is amongst the best of the industry. RDVT outperforms 82.67% of its industry peers.
- RDVT has a Return On Equity of 11.01%. This is in the better half of the industry: RDVT outperforms 74.73% of its industry peers.
- RDVT's Return On Invested Capital of 8.51% is amongst the best of the industry. RDVT outperforms 80.51% 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 10.78%.
- The last Return On Invested Capital (8.51%) for RDVT is above the 3 year average (3.09%), which is a sign of increasing profitability.
| 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 74.01% of its industry peers.
- RDVT's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 13.78%, RDVT belongs to the top of the industry, outperforming 80.51% of the companies in the same industry.
- RDVT's Gross Margin of 83.50% is amongst the best of the industry. RDVT outperforms 89.53% 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
- RDVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for RDVT has been reduced compared to 1 year ago.
- 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 42.03 indicates that RDVT is not in any danger for bankruptcy at the moment.
- RDVT has a Altman-Z score of 42.03. This is amongst the best in the industry. RDVT outperforms 98.19% of its industry peers.
- 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 | 42.03 |
ROIC/WACC0.77
WACC11.11%
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's Current ratio of 8.39 is amongst the best of 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 has a better Quick ratio (8.39) than 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 8.39 |
3. Growth
3.1 Past
- RDVT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.30%, which is quite impressive.
- 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 22.27% in the past year. This is a very strong growth!
- RDVT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.94% yearly.
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
- Based on estimates for the next years, RDVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.70% on average per year.
- 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 45.85, which means the current valuation is very expensive for RDVT.
- Compared to the rest of the industry, the Price/Earnings ratio of RDVT is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.32. RDVT is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 38.27, 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.
- RDVT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.85 | ||
| Fwd PE | 38.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RDVT is valued a bit cheaper than the industry average as 69.31% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RDVT is valued a bit cheaper than 63.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.19 | ||
| EV/EBITDA | 29.07 |
4.3 Compensation for Growth
- RDVT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.01
PEG (5Y)N/A
EPS Next 2Y26.98%
EPS Next 3Y15.7%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.60%, RDVT is not a good candidate for dividend investing.
- 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.
- With a Dividend Yield of 0.60, RDVT pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 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.