$38.11
arrow_drop_up4.18%Is RDVT a Buy or Sell based on AI Analysis?
Fundamental Analysis
Red Violet Inc. (RDVT) has a strong operating margin of 11.32%, indicating efficient cost management and profitability. The net margin of 22.47% reflects the company's ability to convert revenue into profit effectively. Additionally, the return on equity (ROE) of 18.56% indicates that the company is generating a good return for its shareholders. The equity of $83.85M exceeds liabilities and debts, contributing to a healthy debt-to-equity ratio of 0.03. With a current ratio of 4.98, Red Violet has a strong ability to cover its short-term liabilities and demonstrates financial stability. Furthermore, the company's revenue growth of 12.91% showcases its ability to increase sales over time. Red Violet's free cash flow margin of 9.84% indicates that it is generating ample cash flow after accounting for operating expenses and capital expenditures. The strong gross margin of 78.29% signifies efficient production and pricing strategies. With a price-to-sales ratio of 4.81 and price-to-book ratio of 3.63, the stock appears to be trading at reasonable valuations in comparison to its financial performance and book value. Overall, these fundamental indicators suggest that Red Violet has solid financial health and operational efficiency.
Positive Development
Insider buying activity suggests confidence in the company's future performance and potential growth. Cove Street Capital, a reputable investment management company, has included Red Violet Inc. in its Small Cap Value Fund, indicating a positive view on the company's future prospects. The company has a high asset turnover ratio, indicating efficient use of assets, and a high current ratio, indicating short-term liquidity and ability to meet its financial obligations. The company has a strong gross margin, indicating a high profit margin, and a high EBIT per share, indicating high profitability.
Negative Development
The company has a negative net margin, indicating that the company's expenses outweigh its revenues. The company has a high debt-to-equity ratio, indicating that the company's financial obligations are high relative to its equity. The company's pre-tax margin is low, indicating that the company may be facing challenges in generating profits.
Technical Analysis
Red Violet (RDVT) is a stock in the Technology sector with a current price of $25.66. The company has a neutral technical rating, with indicators such as ATR, RSI, MACD, ADX, WILLR, and ROC suggesting a hold. The stock has a beta of 1.49, indicating that it is slightly more volatile than the market. The stock has a current ratio of 4.98, which shows that the company has enough current assets to cover its current liabilities. Additionally, Red Violet has a technical buy indicator count of 1 for the month, as well as a technical sell indicator count of 2. The stock's closest support price is $18.35, with a change of -28.49% from its closest support price. The company's longest support price is $20.04, with a change of -21.9% from its longest support price and has held this support for 232 days. Overall, the technical analysis indicates mixed signals for Red Violet, with a potential for both buying and selling opportunities based on the various technical indicators.
Conclusion and recommendation
Based on the data provided, Red Violet (RDVT) appears to be a stock with a neutral technical rating and a price of $25.66. The company has shown positive price changes over different time periods, with a one-month price change of 12.3% and a three-month price change of 50.94%. Additionally, Red Violet has a strong market quality score of 70, indicating a robust financial standing. With a current market capitalization of $362.62M and a strong return on equity of 18.56%, the company seems to be in a solid position for future growth. In conclusion, Red Violet (RDVT) may be a favorable investment opportunity for those looking for a stock with potential for growth. The company's strong financial metrics, positive price trends, and solid market quality score suggest that it may be a promising addition to a diversified portfolio. However, potential investors should conduct further research and analysis to fully understand the risks and potential rewards associated with investing in Red Violet. Overall, based on the information provided, Red Violet appears to be a company worth considering for investment purposes.