48.21 USD
-1.77 (-3.54%)
48.21 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to RDVT. RDVT was compared to 277 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make RDVT a good candidate 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.
- 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.
- With a decent Return On Equity value of 11.01%, RDVT is doing good in the industry, outperforming 74.73% of the companies in the same industry.
- RDVT's Return On Invested Capital of 8.51% is amongst the best of 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
- RDVT has a Profit Margin of 12.96%. This is in the better half of the industry: RDVT outperforms 74.01% of its industry peers.
- In the last couple of years the Profit Margin of RDVT has grown nicely.
- RDVT's Operating Margin of 13.78% is amongst the best of the industry. RDVT outperforms 80.51% of its industry peers.
- The Gross Margin of RDVT (83.50%) is better than 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
- 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
- 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
- An Altman-Z score of 42.66 indicates that RDVT is not in any danger for bankruptcy at the moment.
- RDVT's Altman-Z score of 42.66 is amongst the best of 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 | 42.66 |
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's Current ratio of 8.39 is amongst the best of the industry. RDVT outperforms 93.50% 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.
- 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
- 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
- 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
- With a Price/Earnings ratio of 44.23, RDVT can be considered very expensive at the moment.
- RDVT's Price/Earnings ratio is in line with the industry average.
- RDVT is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 36.91, RDVT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RDVT is on the same level as its industry peers.
- RDVT is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.23 | ||
| Fwd PE | 36.91 |
4.2 Price Multiples
- RDVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDVT is cheaper than 68.95% 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 64.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.87 | ||
| EV/EBITDA | 29.55 |
4.3 Compensation for Growth
- RDVT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- RDVT has an outstanding profitability rating, which 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.
- RDVT's Dividend Yield is rather good when compared to the industry average which is at 0.52. RDVT pays more dividend than 89.17% of the companies 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 | 0.62% |
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 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.