RDVT

Red Violet

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

Red Violet operates an application software model that monetizes data, analytics, and identity intelligence services, generating revenue through recurring software and data-driven solutions. Its moat is built around proprietary data assets and embedded customer workflows, which increase switching costs once integrated into enterprise systems. With a 13.00% operating margin and strong returns on capital, the company converts software revenue into cash efficiently without relying on heavy leverage. The strength of its balance sheet, evidenced by a 29 Altman Z-Score and 7.2 Current Ratio, reinforces durability, allowing it to reinvest in product enhancement while maintaining financial flexibility.

 


VALUATION

P/E

39.1

Market Cap ($M USD)

$501

Forward P/E

22.9

PEG

-

PRICE TO SALES

5.7

PRICE TO BOOK

5

EV / EBITDA

19.4

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.94

Next Year EPS Growth Estimate

$1.55

Next Year Revenue Growth Estimate

14.70%

Return on Equity (ROE)

13.00%

FREE CASH FLOW

Operating Margin

14.60%

Debt-to-Equity

0

Piotroski F-Score

6

Altman Z-Score

29

Return on Invested Capital (ROIC)

12.40%

Current Ratio

7.2

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Gainseekers Quantitative Analysis

Summary

At 39.1x trailing earnings with a Forward P/E of 22.9, RDVT is priced as a growth software name but not at nosebleed SaaS multiples, implying the market expects earnings normalization or acceleration. The compression from 39.1 to 22.9 suggests forward earnings expansion, yet the absence of a PEG ratio makes it difficult to confirm whether that growth is adequately priced. Financially, the Altman Z-Score of 29 and a Current Ratio of 7.2 signal an exceptionally strong balance sheet with negligible distress risk, which materially de-risks the equity despite a $501M market cap. This is not a distressed deep-value play — it is a fundamentally solvent mid-cap software company priced at a moderate premium that assumes execution.

AI Exposure / Tech Reliance

Operating in Software – Application within the Technology sector, RDVT sits in a segment that is structurally advantaged by AI-driven data processing and automation trends. Application-layer software businesses are typically able to integrate AI capabilities without heavy capital intensity, preserving margins. With a 13.00% operating margin and 14.70% ROE, the company appears positioned to monetize modern tech enhancements rather than be disrupted by them.

The Bull Case

A disciplined GARP investor would focus on capital efficiency and balance sheet strength here. ROIC at 12.40% comfortably exceeds typical cost of capital assumptions, while a 14.70% ROE demonstrates the company is generating meaningful shareholder returns without excessive leverage, as reflected in a modest 14.60% Debt/Equity ratio. The Piotroski F-Score of 6 indicates solid but not perfect financial health — operationally stable, not deteriorating. A 13.00% operating margin in application software shows pricing power and cost discipline, and with a Forward P/E of 22.9, investors are not paying extreme multiples for a business generating double-digit returns on capital and carrying virtually no balance sheet risk.

The Bear Case

The valuation is not cheap on a trailing basis at 39.1x earnings, especially with no PEG ratio provided to justify growth acceleration. The Forward P/E of 22.9 assumes earnings materialize as projected, yet EPS Next Year is listed at $0.94, creating a visibility gap relative to the current EPS figure of 19.4, which raises questions about earnings consistency. Sales Growth Next Year is shown as $1.55, but without context, it is difficult to assess scalability, and Price/Sales at 5.7 is not a bargain for a company with a 13.00% operating margin. Additionally, the lack of dividend yield, payout, or short interest data removes potential signaling mechanisms about capital return discipline or market skepticism.

Market Sentiment & Smart Money

Short Interest %

6.70%

Analyst Consensus

1

Average Analyst Price Target

$63.50

Institutional Ownership %

68.20%

1-Year Beta

1.05

Insider Buying % (6 Mo)

20.50%%

Distance to 52-Week High

55.40%

Distance to 52-Week Low

106.40%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.