Despite its impressive fundamentals, NYSE:REVG remains undervalued.

Last update: Apr 2, 2024

Take a closer look at REV GROUP INC (NYSE:REVG), a remarkable value stock uncovered by our stock screener. NYSE:REVG excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Insights: NYSE:REVG

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:REVG scores a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 78.63% of the companies listed in the same industry.
REVG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.83, the valuation of REVG can be described as very reasonable.
REVG's Price/Forward Earnings ratio is rather cheap when compared to the industry. REVG is cheaper than 92.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.62, REVG is valued rather cheaply.
REVG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REVG is cheaper than 83.97% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
REVG has a very decent profitability rating, which may justify a higher PE ratio.
REVG's earnings are expected to grow with 17.74% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:REVG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:REVG, the assigned 6 is noteworthy for profitability:

REVG has a Return On Assets of 16.99%. This is amongst the best in the industry. REVG outperforms 96.18% of its industry peers.
REVG has a better Return On Equity (48.68%) than 96.95% of its industry peers.
REVG has a better Return On Invested Capital (11.99%) than 75.57% of its industry peers.
The last Return On Invested Capital (11.99%) for REVG is above the 3 year average (6.96%), which is a sign of increasing profitability.
REVG has a Profit Margin of 9.15%. This is in the better half of the industry: REVG outperforms 70.23% of its industry peers.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG's Operating Margin has improved in the last couple of years.

Health Assessment of NYSE:REVG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:REVG has earned a 6 out of 10:

REVG has an Altman-Z score of 3.11. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
There is no outstanding debt for REVG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:REVG has received a 6 out of 10:

REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.72%, which is quite impressive.
REVG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
REVG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.74% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of REVG for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.