Red Violet, Inc. (RDVT) stock analysis
Close on Nov 11, 2026Market cap $1.21BP/E 63.1Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid15 of 30 checks passed
Red Violet passes 15 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 4/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 17.6%, above the 10% that usually covers the cost of capital.
No debt
Red Violet has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 19.2% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 183% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 38.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $75.14 is above our fair value estimate of $54.22.
Return on equity under 15%
Return on equity was 10.7% over the last twelve months and averaged 8.3% over five years; we look for 15% on both.
P/E above the industry
Red Violet's P/E of 63.1 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
Valuation1/6
P/E below its 5-year median
Red Violet's P/E of 63.1 is below its own 5-year median of 71.5.
P/E above the industry
Red Violet's P/E of 63.1 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA above its 5-year median
Red Violet's EV/EBITDA of 36.6 is above its 5-year median of 31.5.
P/B above the industry
Red Violet's price-to-book of 5.30 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $75.14 is above our fair value estimate of $54.22.
Margin of safety under 20%
The price is 38.6% above fair value, so there is no margin of safety.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 19.2% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 183% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 20.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 85.0% over the last twelve months, against 83.5% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 10.7% over the last twelve months and averaged 8.3% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 17.6%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Red Violet's return on equity of 10.7% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 17.0% over the last twelve months, against a 5-year average of 9.8%.
Net margin above the industry
Red Violet's net margin of 17.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health6/6
No debt
Red Violet has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 16.21 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 71.12; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Red Violet has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$54.22
The share price is 39% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 71.5× | 27.6× | $53.55 | 47% |
| EV/EBITDA | 25.2× | 31.5× | 18.8× | $53.75 | 41% |
| P/B | 4.1× | 4.9× | 3.3× | $58.56 | 12% |
| Earnings powerleft out, too far from the others | 10.3% cost of equity | – | – | $13.64 | – |
| Fair value | $54.22 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 71.5
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $13.33M
- Value traded per 1% price move
- $7.24M
Downside
Medium risk
- Typical loss in a bad month
- 22.3%
- Volatility (annualized)
- 48%
- Sharpe ratio, 1 year
- 0.53
- Beta to the S&P 500 (5Y)
- 1.08
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +20.0% | +19.2% | +21.1% | – | |
| Gross profit | +23.5% | – | – | – | |
| Operating income | +65.9% | +231.4% | – | – | |
| Net income | +87.8% | +177.4% | – | – | |
| EPS, diluted | +82.0% | +183.4% | – | – | |
| Free cash flow | +21.0% | +33.5% | +35.2% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -16.0% | 14.0% | |
| Return on assets | – | -13.5% | 12.5% | |
| Current ratio | – | 3.32 | 7.18 | |
| Interest coverage | – | -569.3× | – | |
| Capex to revenue | – | 0.4% | 0.6% | |
| Diluted shares | – | 12M | 14M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Red Violet generated $89.79M from operations and spent $12.86M on capital expenditure, dividends and share buybacks. 12% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 14.6% | 0.86× | 1.12× | 14.0% |
| FY2024 | 9.3% | 0.79× | 1.11× | 8.1% |
| FY2023 | 22.5% | 0.71× | 1.08× | 17.2% |
| FY2022 | 1.2% | 0.70× | 1.08× | 0.9% |
| FY2021 | 1.5% | 0.70× | 1.12× | 1.2% |
| FY2020 | -19.7% | 0.69× | 1.18× | -16.0% |
| FY2019 | -36.6% | 0.68× | 1.13× | -28.3% |
| FY2018 | -42.1% | 0.50× | 1.20× | -25.4% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$13.15M
- Cash generatingOperating cash flow above zero$29.35M
- Return on assets improvedROA up on the prior year7.5% → 13.4%
- Earnings backed by cashOperating cash flow above net income$29.35M vs $13.15M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose4.48 → 7.18
- No dilutionShare count did not rise14M → 14M
- Gross margin improvedGross margin up on the prior year81.38% → 83.74%
- More efficientAsset turnover rose0.81 → 0.92
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