Red Violet, Inc. Fundamental Analysis (NASDAQ: RDVT)
Red Violet, Inc. (NASDAQ: RDVT) shows moderate financial fundamentals with a PE ratio of 60.09, profit margin of 16.54%, and ROE of 15.64%. The company generates $0.1B in annual revenue with strong year-over-year growth of 20.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RDVT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRDVT demonstrates superior asset utilization.
Valuation Score
ModerateRDVT shows balanced valuation metrics.
Growth Score
ExcellentRDVT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRDVT maintains a strong and stable balance sheet.
Profitability Score
ExcellentRDVT achieves industry-leading margins.
Key Financial Metrics
Is RDVT Expensive or Cheap?
P/E Ratio
RDVT trades at 60.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RDVT's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Red Violet, Inc. at 8.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.78 times EBITDA. This signals the market has high growth expectations.
How Well Does RDVT Make Money?
Net Profit Margin
For every $100 in sales, Red Violet, Inc. keeps $16.54 as profit after all expenses.
Operating Margin
Core operations generate 17.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.64 in profit for every $100 of shareholder equity.
ROA
Red Violet, Inc. generates $13.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Red Violet, Inc. generates strong operating cash flow of $31.02M, reflecting robust business health.
Free Cash Flow
Red Violet, Inc. generates strong free cash flow of $27.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.97 in free cash annually.
FCF Yield
RDVT converts 2.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How RDVT Stacks Against Its Sector Peers
| Metric | RDVT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.09 | 34.93 | Worse (Expensive) |
| ROE | 15.64% | 750.00% | Weak |
| Net Margin | 16.54% | -3058.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 10.88 | 6.21 | Strong Liquidity |
| ROA | 13.61% | 308.00% | Weak |
RDVT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Red Violet, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
120.54%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
263.18%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
280.50%
Industry Style: Growth, Innovation, High Beta
High Growth