RED VIOLET INC (RDVT) Stock Fundamental Analysis
USA - NASDAQ:RDVT - US75704L1044 - Common Stock
57.98 USD
+0.01 (+0.02%)
57.98 USD
0 (0%)
RDVT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make RDVT a good candidate 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.
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
Looking at the Return On Assets, with a value of 8.31%, RDVT belongs to the top of the industry, outperforming 83.27% of the companies in the same industry.
RDVT has a better Return On Equity (9.05%) than 75.44% of its industry peers.
The Return On Invested Capital of RDVT (7.44%) is better than 77.22% 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 11.92%.
The 3 year average ROIC (3.09%) for RDVT is below the current ROIC(7.44%), indicating increased profibility in the last year.
| 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 73.31% of its industry peers.
In the last couple of years the Profit Margin of RDVT has grown nicely.
The Operating Margin of RDVT (11.93%) is better than 77.22% of its industry peers.
RDVT's Gross Margin of 83.07% is amongst the best of the industry. RDVT outperforms 90.04% of its industry peers.
In the last couple of years the Gross Margin of RDVT has grown nicely.
| 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.
Compared to 1 year ago, RDVT has less shares outstanding
RDVT has more shares outstanding than it did 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
RDVT has an Altman-Z score of 58.04. This indicates that RDVT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RDVT (58.04) is better than 97.86% 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 | 58.04 |
ROIC/WACC0.68
WACC10.97%
2.3 Liquidity
A Current Ratio of 9.12 indicates that RDVT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 9.12, RDVT belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
A Quick Ratio of 9.12 indicates that RDVT has no problem at all paying its short term obligations.
RDVT has a Quick ratio of 9.12. This is amongst the best in the industry. RDVT outperforms 94.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.12 | ||
| Quick Ratio | 9.12 |
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
The Revenue has grown by 24.89% in the past year. This is a very strong growth!
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)24.89%
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 18.16% yearly.
RDVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.15% yearly.
EPS Next Y33.61%
EPS Next 2Y21.56%
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.
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
RDVT is valuated quite expensively with a Price/Earnings ratio of 53.19.
The rest of the industry has a similar Price/Earnings ratio as RDVT.
Compared to an average S&P500 Price/Earnings ratio of 26.34, RDVT is valued quite expensively.
RDVT is valuated quite expensively with a Price/Forward Earnings ratio of 48.44.
RDVT's Price/Forward Earnings is on the same level as the industry average.
RDVT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.19 | ||
| Fwd PE | 48.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RDVT is valued a bit cheaper than 66.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDVT indicates a somewhat cheap valuation: RDVT is cheaper than 60.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.19 | ||
| EV/EBITDA | 38.69 |
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)1.58
PEG (5Y)N/A
EPS Next 2Y21.56%
EPS Next 3Y18.16%
5. Dividend
5.1 Amount
RDVT has a yearly dividend return of 0.52%, which is pretty low.
RDVT's Dividend Yield is rather good when compared to the industry average which is at 41.10. RDVT pays more dividend than 88.97% of the companies in the same industry.
With a Dividend Yield of 0.52, RDVT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 2Y21.56%
EPS Next 3Y18.16%
57.98
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners68.02%
Inst Owner Change-1.88%
Ins Owners14.38%
Ins Owner Change-0.75%
Market Cap810.56M
Revenue(TTM)75.19M
Net Income(TTM)8.71M
Analysts82.5
Price Target57.12 (-1.48%)
Short Float %8.44%
Short Ratio10.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.19 | ||
| Fwd PE | 48.44 | ||
| P/S | 9.84 | ||
| P/FCF | 49.19 | ||
| P/OCF | 30.67 | ||
| P/B | 8.43 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 38.69 |
EPS(TTM)1.09
EY1.88%
EPS(NY)1.2
Fwd EY2.06%
FCF(TTM)1.18
FCFY2.03%
OCF(TTM)1.89
OCFY3.26%
SpS5.89
BVpS6.88
TBVpS3.81
PEG (NY)1.58
PEG (5Y)N/A
Graham Number12.99
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
ROICexgc growth 3YN/A
ROICexgc 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 | 58.04 |
F-Score6
WACC10.97%
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)47.3%
EPS 3Y114.84%
EPS 5YN/A
EPS Q2Q%77.27%
EPS Next Y33.61%
EPS Next 2Y21.56%
EPS Next 3Y18.16%
EPS Next 5YN/A
Revenue 1Y (TTM)24.89%
Revenue growth 3Y19.54%
Revenue growth 5Y19.94%
Sales Q2Q%21.13%
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 Year307.42%
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%
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.
Can you provide the valuation status for RED VIOLET INC?
ChartMill assigns a valuation rating of 3 / 10 to RED VIOLET INC (RDVT). This can be considered as Overvalued.
Can you provide the profitability details for RED VIOLET INC?
RED VIOLET INC (RDVT) has a profitability rating of 7 / 10.
How financially healthy is RED VIOLET INC?
The financial health rating of RED VIOLET INC (RDVT) is 9 / 10.
What is the expected EPS growth for RED VIOLET INC (RDVT) stock?
The Earnings per Share (EPS) of RED VIOLET INC (RDVT) is expected to grow by 33.61% in the next year.