DB:2KH

Stock Analysis Report

Executive Summary

Red Violet, Inc., a software and services company, specializes in big data analysis providing cloud-based mission-critical information solutions to enterprises in various industries in the United States.

Snowflake

Fundamentals

Flawless balance sheet with poor track record.


Similar Companies

Share Price & News

How has Red Violet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2KH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

2KH

-0.1%

DE Professional Services

-0.3%

DE Market


1 Year Return

156.8%

2KH

18.7%

DE Professional Services

10.9%

DE Market

Return vs Industry: 2KH exceeded the German Professional Services industry which returned 18.7% over the past year.

Return vs Market: 2KH exceeded the German Market which returned 10.9% over the past year.


Shareholder returns

2KHIndustryMarket
7 Day-0.7%-0.1%-0.3%
30 Day9.4%4.3%2.6%
90 Day21.6%2.8%11.8%
1 Year156.8%156.8%22.1%18.7%14.4%10.9%
3 Yearn/a49.5%37.3%24.1%13.2%
5 Yearn/a83.7%59.9%33.0%14.8%

Price Volatility Vs. Market

How volatile is Red Violet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Red Violet undervalued compared to its fair value and its price relative to the market?

4.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2KH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2KH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2KH is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: 2KH is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2KH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2KH is overvalued based on its PB Ratio (4.5x) compared to the XE Professional Services industry average (2.2x).


Next Steps

Future Growth

How is Red Violet forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Red Violet has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Red Violet performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2KH has high quality earnings.

Growing Profit Margin: 2KH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2KH is unprofitable, but has reduced losses over the past 5 years at a rate of 23.4% per year.

Accelerating Growth: Unable to compare 2KH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2KH is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (7.1%).


Return on Equity

High ROE: 2KH has a negative Return on Equity (-19.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Red Violet's financial position?


Financial Position Analysis

Short Term Liabilities: 2KH's short term assets ($17.6M) exceeds its short term liabilities ($5.0M)

Long Term Liabilities: 2KH's short term assets ($17.6M) exceeds its long term liabilities (2.6M)


Debt to Equity History and Analysis

Debt Level: 2KH is debt free.

Reducing Debt: 2KH has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 2KH has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2KH's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2KH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 2KH has sufficient cash runway for 1.144887 years if free cash flow continues to grow at historical rates of 17.9% each year.


Next Steps

Dividend

What is Red Violet's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2KH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2KH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2KH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2KH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2KH's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Red Violet's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Derek Dubner (47yo)

2.3yrs

Tenure

US$3,317,978

Compensation

Mr. Derek Dubner has been Interim Chairman of Red Violet, Inc. since September 2018 and also has been its Chief Executive Officer and Director since August 2017. Mr. Dubner served as its Interim President  ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD3.32M) is above average for companies of similar size in the German market ($USD513.69K).

Compensation vs Earnings: Derek's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: 2KH's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 2KH's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$21,03911 Jun 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares2,000
Max PriceUS$10.56
BuyUS$17,76114 May 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares2,000
Max PriceUS$9.01
BuyUS$8,14710 May 19
Derek Dubner
EntityIndividual
Role
Chief Executive Officer
CEO & Interim Chairman
Shares1,000
Max PriceUS$8.15
BuyUS$7,90710 May 19
James Reilly
EntityIndividual
Role
President
President
Shares1,000
Max PriceUS$7.91
BuyUS$66,59303 Apr 19
Peter Benz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,596
Max PriceUS$6.36
BuyUS$39,07901 Apr 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares6,500
Max PriceUS$6.04
BuyUS$18,04329 Mar 19
Derek Dubner
EntityIndividual
Role
Chief Executive Officer
CEO & Interim Chairman
Shares3,000
Max PriceUS$6.01
BuyUS$9,02129 Mar 19
James Reilly
EntityIndividual
Role
President
President
Shares1,500
Max PriceUS$6.01
BuyUS$23,57427 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares4,000
Max PriceUS$5.90
BuyUS$20,20525 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares3,500
Max PriceUS$5.77
BuyUS$26,65422 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares4,500
Max PriceUS$5.92
BuyUS$16,91621 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares2,800
Max PriceUS$6.04
BuyUS$31,75014 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares4,949
Max PriceUS$6.44
BuyUS$65,94712 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares10,500
Max PriceUS$6.29
BuyUS$64,78411 Mar 19
Peter Benz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,332
Max PriceUS$6.27
BuyUS$12,62911 Mar 19
Derek Dubner
EntityIndividual
Role
Chief Executive Officer
CEO & Interim Chairman
Shares2,000
Max PriceUS$6.31
BuyUS$9,47211 Mar 19
James Reilly
EntityIndividual
Role
President
President
Shares1,500
Max PriceUS$6.31
BuyUS$60,84608 Mar 19
Grander Holdings Inc., 401K plan
EntityCompany
Shares9,500
Max PriceUS$6.40
SellUS$4,586,50817 Dec 18
Matthew Conlin
EntityIndividual
Shares542,330
Max PriceUS$8.46
SellUS$006 Dec 18
Ryan Schulke
EntityIndividual
Shares277,474
Max PriceUS$7.17
BuyUS$6,17327 Nov 18
Grander Holdings Inc., 401K plan
EntityCompany
Shares1,000
Max PriceUS$6.17
BuyUS$6,05826 Nov 18
Grander Holdings Inc., 401K plan
EntityCompany
Shares992
Max PriceUS$6.28

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ole Poulsen

    Chief Science Officer

    • Tenure: 1.7yrs
  • Derek Dubner (47yo)

    CEO & Interim Chairman

    • Tenure: 2.3yrs
    • Compensation: US$3.32m
  • James Reilly (45yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$2.39m
  • Jeff Dell (47yo)

    Chief Information Officer

    • Tenure: 2.3yrs
  • Dan MacLachlan (40yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.47m
  • Jacky Wang

    Chief Accounting Officer

    • Tenure: 0yrs
  • Joshua Weingard

    Corporate Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Angus Macnab

    Chief Technology Officer

    • Tenure: 0yrs
  • Camilo Ramirez

    Director of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Peter Benz (58yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$314.25k
  • Steve Rubin (59yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$314.25k
  • Bob Swayman (64yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$193.73k
  • Derek Dubner (47yo)

    CEO & Interim Chairman

    • Tenure: 2.3yrs
    • Compensation: US$3.32m

Company Information

Red Violet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Violet, Inc.
  • Ticker: 2KH
  • Exchange: DB
  • Founded: 2017
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$194.499m
  • Listing Market Cap: US$175.750m
  • Shares outstanding: 11.54m
  • Website: https://www.redviolet.com

Number of Employees


Location

  • Red Violet, Inc.
  • 2650 North Military Trail
  • Suite 300
  • Boca Raton
  • Florida
  • 33431
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDVTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2018
2KHDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2018

Biography

Red Violet, Inc., a software and services company, specializes in big data analysis providing cloud-based mission-critical information solutions to enterprises in various industries in the United States. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 22:24
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.