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Red VioletRDVT -0.42%68 1-Year ROIIC % is 91.67 as of Mar. 2026. GuruFocus rates RDVT with a GF Score™ of 68/100 and a GF Value™ of $41.88 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,704 Software companies, Red Violet ranks better than 84.17% on this metric.
1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Red Violet's 1-Year ROIIC % for the quarter that ended in Mar. 2026 was 91.67%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Red Violet's 1-Year ROIIC % or its related term are showing as below:
RDVT's 1-Year ROIIC % is ranked better than 84.17% of 2704
companies
in the Software industry
Industry Median: 4.405
vs RDVT: 91.67
Red Violet (NAS:RDVT) 1-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Red Violet 1-Year ROIIC % Related Terms
Red Violet 1-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Red Violet's 1-Year ROIIC % 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.
RDVT vs GTM, MITK, IBTA: 1-Year ROIIC % Comparison
For the Software - Application subindustry, Red Violet's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Red Violet's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Red Violet's 1-Year ROIIC % falls into.
Red Violet's 1-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 12.004 (Mar. 2026) - 7.4746 (Mar. 2025) )
/
( 65.425 (Mar. 2026) - 60.484 (Mar. 2025) )
=
4.5294
/
4.941
=
91.67%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Red Violet (RDVT) has a 1-Year ROIIC % of 91.67 as of Mar. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Red Violet and its competitors. According to the industry distribution chart, Red Violet ranks #428 out of 2704 companies in the Software industry, placing it in the top 15.8%.
Is Red Violet's 1-Year ROIIC % too high?
Red Violet's current 1-Year ROIIC % is 91.67. The Software industry median 1-Year ROIIC % is 4.41. Red Violet's value of 91.67 is 1981% above this industry median. Based on the distribution chart, Red Violet ranks #428 out of 2704 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 1-Year ROIIC % compare to GTM and MITK?
According to the Software industry distribution chart, Red Violet ranks #428 out of 2704 companies for 1-Year ROIIC %. This places Red Violet in the top 16% of its industry — outperforming the majority of peers. The industry median 1-Year ROIIC % is 4.41. Red Violet's value of 91.67 is 1981% 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 1-Year ROIIC % for a Software company?
The median 1-Year ROIIC % among Software companies is 4.41, based on 2,704 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Red Violet's current 1-Year ROIIC % of 91.67 is 1981% 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 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Red Violet and its competitors. For the Software industry, the median 1-Year ROIIC % is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Violet's current 1-Year ROIIC % is 91.67. 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 $66.25 — trading 58.2% above its estimated fair value. The current 1-Year ROIIC % is 91.67 and 1981% above the Software industry median of 4.41. 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 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For Red Violet (RDVT), the current 1-Year ROIIC % is 91.67 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 $66.25 is trading 58.2% above its estimated GF Value™ of $41.88.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for RDVT:
1-Year ROIIC %: 91.67
GF Value™: $41.88 vs. price of $66.25 (58.2% above fair value)
Industry Position: 1981% above the Software median (#428 of 2704)
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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