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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Red Violet's annualizedNet Income for the quarter that ended in Mar. 2026 was $17.55 Mil.
Red Violet's average Total Assets over the quarter that ended in Mar. 2026 was $112.32 Mil. Therefore, Red Violet's annualized ROA % for the quarter that ended in Mar. 2026 was 15.63%.
The historical rank and industry rank for Red Violet's ROA % or its related term are showing as below:
RDVT'
s ROA % Range Over the Past 10 Years
Min: -98.1 Med: -6.35 Max: 15.88
Current: 13.04
During the past 10 years, Red Violet's highest ROA % was 15.88%. The lowest was -98.10%. And the median was -6.35%.
RDVT's ROA % is ranked better than 88.96% of 2890
companies
in the Software industry
Industry Median: 1.705
vs RDVT: 13.04
Red Violet (NAS:RDVT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Red Violet ROA % Related Terms
Red Violet ROA % Historical Data
* Premium members only.
The historical data trend for Red Violet's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Red Violet's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Red Violet ROA % vs Software Industry
For the Software industry and Technology sector, Red Violet's ROA % distribution charts can be found below:
* The bar in red indicates where Red Violet's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Red Violet (RDVT) has a ROA % of 15.63% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Red Violet and its competitors. According to the industry distribution chart, Red Violet ranks #319 out of 2890 companies in the Software industry, placing it in the top 11%.
Is Red Violet's ROA % too high?
Red Violet's current ROA % is 15.63%. The Software industry median ROA % is 1.71. Red Violet's value of 15.63% is 816.7% above this industry median. Based on the distribution chart, Red Violet ranks #319 out of 2890 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Red Violet has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's ROA % compare to GTM and MITK?
According to the Software industry distribution chart, Red Violet ranks #319 out of 2890 companies for ROA %. This places Red Violet in the top 11% of its industry — outperforming the majority of peers. The industry median ROA % is 1.71. Red Violet's value of 15.63% is 816.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Software company?
The median ROA % among Software companies is 1.71, based on 2,890 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Red Violet's current ROA % of 15.63% is 816.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Red Violet and its competitors. For the Software industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Violet's current ROA % is 15.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (RDVT) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.88, compared to a current price of $66.43 — trading 58.6% above its estimated fair value. The current ROA % is 15.63% and 816.7% above the Software industry median of 1.71. Red Violet's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Red Violet (RDVT), the current ROA % is 15.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Red Violet (RDVT) Overvalued in 2026?
Based on GuruFocus' analysis, Red Violet stock appears to be overvalued.
The current stock price of $66.43 is trading 58.6% above its estimated GF Value™ of $41.88.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for RDVT:
ROA %: 15.63%
GF Value™: $41.88 vs. price of $66.43 (58.6% above fair value)
Industry Position: 816.7% above the Software median (#319 of 2890)
No single metric tells the full story. See the RDVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
68GF Score
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