NasdaqCM:RDVT

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 Analysis

Flawless balance sheet with weak fundamentals.


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: RDVT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

RDVT

0.06%

US Professional Services

0.06%

US Market


1 Year Return

231.7%

RDVT

29.6%

US Professional Services

19.3%

US Market

Return vs Industry: RDVT exceeded the US Professional Services industry which returned 29.6% over the past year.

Return vs Market: RDVT exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

RDVTIndustryMarket
7 Day7.9%0.06%0.06%
30 Day14.1%2.8%1.7%
90 Day46.6%13.6%9.0%
1 Year231.7%231.7%30.8%29.6%21.8%19.3%
3 Yearn/a62.8%57.6%49.5%39.9%
5 Yearn/a82.9%73.0%73.1%54.1%

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

Valuation

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

6.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: RDVT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RDVT is overvalued based on its PB Ratio (6.8x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

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

28.4%

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: RDVT is currently unprofitable.

Growing Profit Margin: RDVT is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: RDVT is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (10.6%).


Return on Equity

High ROE: RDVT 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: RDVT's short term assets ($17.6M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: RDVT's short term assets ($17.6M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: RDVT is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RDVT'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: RDVT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RDVT has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 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%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RDVT'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 RDVT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDVT'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 RDVT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Derek Dubner (47yo)

2.5yrs

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 ($USD3.32M) is above average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Derek Dubner
CEO & Interim Chairman2.5yrsUS$3.32m2.26% $6.4m
James Reilly
President2.5yrsUS$2.39m1.29% $3.7m
Daniel MacLachlan
Chief Financial Officer2.5yrsUS$2.47mno data
Jacky Wang
Chief Accounting Officer0yrsno datano data
Angus Macnab
Chief Technology Officer0yrsno datano data
Jeffrey Dell
Chief Information Officer2.5yrsno data0.22% $622.5k
Camilo Ramirez
Director of Finance & Investor Relations0yrsno datano data
Joshua Weingard
Corporate Counsel & Corporate Secretary0yrsno datano data
Ole Poulsen
Chief Science Officer1.9yrsno datano data

2.5yrs

Average Tenure

46yo

Average Age

Experienced Management: RDVT's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Derek Dubner
CEO & Interim Chairman2.5yrsUS$3.32m2.26% $6.4m
Peter Benz
Independent Director1.9yrsUS$314.25k0.47% $1.3m
Steven Rubin
Independent Director1.9yrsUS$314.25k0.49% $1.4m
Robert Swayman
Independent Director1.9yrsUS$193.73k0.23% $663.0k

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RDVT's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Red Violet, Inc.
  • Ticker: RDVT
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$285.058m
  • 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. Its proprietary platform includes CORE, a cloud-based technology platform, which serves various industries within risk management. The company serves various industries, including law enforcement, government, financial services, insurance, and corporate risk for identity verification, risk assessment, fraud detection, and compliance. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective clients, distributors, resellers, strategic partners, and installed base of current clients, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:17
End of Day Share Price2020/02/20 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.