Red Violet, Inc. (RDVT) Analyse boursière

Présentation de l'entreprise

Red Violet, Inc. operates as an analytics and information solutions provider, specializing in proprietary technologies that apply analytical capabilities to deliver identity intelligence within the United States market. The company is firmly situated within the Technology sector and specifically targets the Software - Application industry, which implies a focus on developing scalable digital tools and software infrastructure. In terms of scale, the firm reports a market capitalization of $539.56M, generates annual revenue of $90.25M, and employs a workforce of 250 individuals. These financial figures indicate that Red Violet, Inc. has established itself as a mid-cap entity with a significant operational footprint, positioning it as a substantial player capable of influencing its niche within the broader technology landscape.

Santé financière

The company reported a trailing twelve-month revenue of $90.25M and generated a net income of $13.15M, resulting in an EBITDA of $13.88M. The gap between the revenue figure of $90.25M and the net income of $13.15M reveals a cost structure where operating expenses, such as cost of goods sold and general administrative costs, consume a significant portion of top-line revenue before reaching the bottom line. The free cash flow stands at $8.73M, which signifies that the company possesses substantial cash generation capabilities independent of non-cash accounting items, thereby providing a high degree of financial flexibility for operational investments or strategic acquisitions. Margin analysis shows a gross margin of 83.7%, indicating high pricing power and low direct production costs typical of software models, while an operating margin of 6.8% and a profit margin of 14.6% suggest that general and administrative expenses are substantial relative to revenue, compressing the final profitability before interest and taxes. The balance sheet demonstrates a conservative stance with cash holdings of $43.56M against total debt of $2.79M, supported by a debt-to-equity ratio of 2.77 which, despite the higher ratio, is underpinned by significant cash reserves. Liquidity is exceptionally strong, evidenced by a current ratio of 7.18, which indicates that the company holds more than seven times the current assets required to cover its short-term liabilities without difficulty. Return on Equity stands at 14.0% and return on assets is 8.0%, metrics that reveal management's effectiveness in generating shareholder value and utilizing the company's asset base to produce earnings efficiently.

Évaluation de la valorisation

Valuation metrics indicate a trailing P/E ratio of 41.12 and a forward P/E of 24.67, suggesting that the market expects earnings growth that will significantly bridge the current high valuation multiple down to a more moderate level in the coming year. The price-to-book ratio is calculated at 5.36, which indicates that the market values the company at a significant premium over its net asset value, reflecting confidence in its intangible assets and future growth potential rather than just its tangible book equity. Alternative valuation metrics such as a price-to-sales ratio of 5.98 and an EV/EBITDA of 35.95 suggest that investors are willing to pay a high multiple for revenue and earnings, consistent with high-growth technology stocks that prioritize expansion over current cash flow. Price action over the last year has fluctuated between a 52-week high of $64.14 and a 52-week low of $33.40, providing a trading range that contextualizes current share price movements against historical volatility. The beta value of 1.81 indicates that the stock's price volatility is substantially higher than the broader market, meaning the asset will likely experience amplified swings during periods of market stress or rally.

Growth & Income

Revenue growth year-over-year is recorded at 19.6% while earnings growth year-over-year is recorded at 215.2%, demonstrating that earnings are growing at a rate significantly faster than revenue. This divergence implies that the company is experiencing a step-change in profitability, potentially driven by operational leverage, cost efficiencies, or a shift to higher-margin product lines as it scales. As a non-dividend payer, the company maintains a dividend yield of N/A and a payout ratio of 0.0%, meaning it reinvests all of its net income into business expansion, research and development, or debt reduction rather than distributing cash to shareholders. The overall growth and income profile is characterized by aggressive top-line expansion and a sharp improvement in bottom-line performance, with no reliance on dividend income for total shareholder return.