Red Violet Inc. (RDVT) exhibits 45.0% gross margins and 16.1% return on invested capital within Technology (Computer Software: Prepackaged Software), balanced against a 91.6x enterprise multiple and 4.8% implied options volatility.
Sustained 45.0% gross profitability converts into 14.6% operating margin and 16.1% ROIC, outpacing sector cost of capital.
ROIC: 16.1% // GM: 45.0%YoY revenue trajectory of +20.0% paired with 2.23% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +20.0% // FCF YLD: 2.23%Altman Z-Score of 3.80 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.80 // F-SCORE: 7/9Trading at 98.2x trailing P/E (82.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 98.2x // EV/EBITDA: 91.6xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $80.46 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Computer Software: Prepackaged Software require continuous execution to defend 14.6% net margins.
NET MARGIN: 14.6% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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