Red Violet, Inc. (RDVT)
Valuation Overview•Is Red Violet, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 84/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
RDVT demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($41M) and minimal debt risk.
The company is driving exceptional top-line expansion (19.2% 3Y CAGR) paired with highly explosive earnings growth (175.1% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 15.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $25.8M | +20.0% | +19.2% | +21.1% | +36.6% | |
| EBITDA | $8.3M | — | +50.1% | — | — | |
| Net Income | $4.4M | +87.8% | +177.4% | — | — | |
| EPS (Diluted) | $0.30 | +82.0% | +175.1% | — | — | |
| Free Cash Flow | $6.5M | +21.0% | +99.4% | +35.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 84.2% | 81.1% | 79.0% | 59.3% |
| Operating Margin | 15.3% | 9.7% | 5.4% | -60.7% |
| Net Margin | 15.0% | 15.5% | 9.8% | -66.8% |
| FCF Margin | 29.4% | 24.5% | 17.7% | -53.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.32 | $0.46 | +43.8% | ||
| Q1'26 | $0.15 | $0.21 | +40.0% | ||
| Q4'25 | $0.32 | $0.39 | +21.9% | ||
| Q3'25 | $0.28 | $0.28 | +0.0% | ||
| Q2'25 | $0.23 | $0.33 | +43.5% | ||
| Q1'25 | $0.09 | $0.09 | +0.0% | ||
| Q4'24 | $0.23 | $0.22 | -4.3% | ||
| Q3'24 | $0.19 | $0.28 | +47.4% |
Total return is +15.5% (1Y), lagging the benchmark by -9.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +7.3% | -2.0% | — |
| 1Y | +15.5% | -9.5% | — |
| 3YCAGR | +38.5% | +19.3% | +1.4% |
| 5YCAGR | +22.5% | +9.8% | +1.5% |
| 10YCAGR | +1.8% | -11.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Red Violet, Inc. (RDVT) valuation, health, and returns.
Based on peer relative multiples, Red Violet, Inc. appears Fair versus peers compared to industry peers.
Red Violet, Inc. has multiple valuation anchors: Peer Relative Fair Value: $53.58 | Wall Street Analyst Target: $62.00 (implying +12.5% upside). A convergence of these signals offers higher conviction.
Red Violet, Inc. displays excellent financial health with a composite quality score of 84/100, supported by a Altman Z-Score of 43.9 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 17.6%.
Red Violet, Inc. pays a 0.5% dividend yield, covered by a 32% payout ratio with 0 years of growth, supplemented by a 0.1% buyback yield.
Red Violet, Inc.'s current growth trajectory is Stable. The company achieved +20.0% 1Y revenue growth and +82.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +19.2%.
Wall Street consensus is Buy based on 1 analysts, beating EPS expectations in 60% of recent quarters with a 3-quarter streak. The consensus price target represents a +12.5% change from current levels.
Investment risks for Red Violet, Inc. include: -42.1% 1-year max drawdown. Volatility risk is characterized by a beta of 1.17x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.