Red Violet, Inc. (RDVT) on Decifer

Decifer ranks RDVT number 52 of 274 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 11% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 20% a year and profits grew 84% over the past year.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders and its own insiders have been buying.
• Our durability check found pressure on this name, which costs it a few points.
• It trades about 50% above similar companies, and its growth does not yet back up that price.
• Improving returns around 11% and profits up 84% with momentum at 25 out of 35 make a strong setup, but trading about 47% above peers and no stated reason to grow keep it from being a top pick.

The current read

The evidence on RDVT lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 0.5% this week, worth watching but not the weight of the evidence.

Themes

• Digital Commerce & SMB Enablement: The behavioral shift of commerce and small-business operations to online and mobile channels continues to pull SMBs onto integrated software platforms.

Read the full RDVT research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.