Red Violet, Inc. (RDVT) on Decifer

Decifer ranks RDVT number 100 of 267 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 72% above similar companies, and its growth does not yet back up that price.
• Momentum of 27 out of 35 and 84% profit growth are attractive but a valuation about 67% above peers and no funded role limit the setup.

The current read

The evidence on RDVT lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

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.