REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
Overall REVG gets a fundamental rating of 6 out of 10. We evaluated REVG against 129 industry peers in the Machinery industry. While REVG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REVG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
REVG had positive earnings in the past year.
REVG had a positive operating cash flow in the past year.
Of the past 5 years REVG 4 years were profitable.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
REVG has a Return On Assets of 21.24%. This is amongst the best in the industry. REVG outperforms 97.60% of its industry peers.
The Return On Equity of REVG (59.20%) is better than 97.60% of its industry peers.
With a decent Return On Invested Capital value of 10.98%, REVG is doing good in the industry, outperforming 74.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 11.00%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(10.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.24% | ||
| ROE | 59.2% | ||
| ROIC | 10.98% |
ROA(3y)8.53%
ROA(5y)5.37%
ROE(3y)23.88%
ROE(5y)14.75%
ROIC(3y)7.94%
ROIC(5y)6.54%
1.3 Margins
REVG's Profit Margin of 10.82% is fine compared to the rest of the industry. REVG outperforms 73.60% of its industry peers.
REVG's Profit Margin has improved in the last couple of years.
The Operating Margin of REVG (4.47%) is worse than 63.20% of its industry peers.
In the last couple of years the Operating Margin of REVG has grown nicely.
REVG has a Gross Margin of 12.49%. This is amonst the worse of the industry: REVG underperforms 88.80% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 10.82% | ||
| GM | 12.49% |
OM growth 3Y8.27%
OM growth 5Y29.83%
PM growth 3Y79.7%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5Y3.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REVG is destroying value.
REVG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
REVG has an Altman-Z score of 3.98. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.98, REVG is doing good in the industry, outperforming 66.40% of the companies in the same industry.
The Debt to FCF ratio of REVG is 3.29, which is a good value as it means it would take REVG, 3.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, REVG is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that REVG is not too dependend on debt financing.
REVG has a better Debt to Equity ratio (0.20) than 68.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.98 |
ROIC/WACC0.98
WACC11.26%
2.3 Liquidity
A Current Ratio of 1.72 indicates that REVG should not have too much problems paying its short term obligations.
REVG's Current ratio of 1.72 is on the low side compared to the rest of the industry. REVG is outperformed by 68.00% of its industry peers.
REVG has a Quick Ratio of 1.72. This is a bad value and indicates that REVG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.43, REVG is not doing good in the industry: 92.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.74%, which is quite impressive.
REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
REVG shows a decrease in Revenue. In the last year, the revenue decreased by -9.77%.
The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)20.74%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)-9.77%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-13.76%
3.2 Future
Based on estimates for the next years, REVG will show a very strong growth in Earnings Per Share. The EPS will grow by 33.71% on average per year.
Based on estimates for the next years, REVG will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y43.3%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.18, REVG is valued on the expensive side.
Based on the Price/Earnings ratio, REVG is valued a bit cheaper than the industry average as 68.80% of the companies are valued more expensively.
REVG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 13.38, REVG is valued correctly.
Based on the Price/Forward Earnings ratio, REVG is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of REVG to the average of the S&P500 Index (22.68), we can say REVG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
64.00% of the companies in the same industry are more expensive than REVG, based on the Enterprise Value to EBITDA ratio.
REVG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. REVG is more expensive than 62.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.07 | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
REVG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of REVG may justify a higher PE ratio.
A more expensive valuation may be justified as REVG's earnings are expected to grow with 33.71% in the coming years.
PEG (NY)0.44
PEG (5Y)0.65
EPS Next 2Y37.53%
EPS Next 3Y33.71%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 1.65, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of REVG is nicely growing with an annual growth rate of 76.61%!
REVG has been paying a dividend for over 5 years, so it has already some track record.
REVG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)76.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
74.53% of the earnings are spent on dividend by REVG. This is not a sustainable payout ratio.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.53%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
31.26
-1.91 (-5.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change-96.94%
Ins Owners1.66%
Ins Owner Change1.63%
Market Cap1.63B
Analysts78
Price Target35.57 (13.79%)
Short Float %4.03%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP74.53%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.71%
Min EPS beat(2)2.04%
Max EPS beat(2)11.38%
EPS beat(4)4
Avg EPS beat(4)30.64%
Min EPS beat(4)2.04%
Max EPS beat(4)63.4%
EPS beat(8)8
Avg EPS beat(8)345.55%
EPS beat(12)11
Avg EPS beat(12)230.87%
EPS beat(16)14
Avg EPS beat(16)186.97%
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-8.19%
Max Revenue beat(2)-2.85%
Revenue beat(4)1
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)3.39%
Revenue beat(12)6
Avg Revenue beat(12)1.88%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)0%
PT rev (3m)16.74%
EPS NQ rev (1m)-25.82%
EPS NQ rev (3m)-11.67%
EPS NY rev (1m)0%
EPS NY rev (3m)8.75%
Revenue NQ rev (1m)-13%
Revenue NQ rev (3m)-14.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 13.38 | ||
| P/S | 0.68 | ||
| P/FCF | 63.07 | ||
| P/OCF | 30.47 | ||
| P/B | 3.74 | ||
| P/tB | 8.05 | ||
| EV/EBITDA | 12.8 |
EPS(TTM)1.63
EY5.21%
EPS(NY)2.34
Fwd EY7.47%
FCF(TTM)0.5
FCFY1.59%
OCF(TTM)1.03
OCFY3.28%
SpS45.73
BVpS8.36
TBVpS3.88
PEG (NY)0.44
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.24% | ||
| ROE | 59.2% | ||
| ROCE | 14.31% | ||
| ROIC | 10.98% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 16.8% | ||
| OM | 4.47% | ||
| PM (TTM) | 10.82% | ||
| GM | 12.49% | ||
| FCFM | 1.08% |
ROA(3y)8.53%
ROA(5y)5.37%
ROE(3y)23.88%
ROE(5y)14.75%
ROIC(3y)7.94%
ROIC(5y)6.54%
ROICexc(3y)8.17%
ROICexc(5y)6.72%
ROICexgc(3y)12.19%
ROICexgc(5y)10.14%
ROCE(3y)10.34%
ROCE(5y)8.53%
ROICexcg growth 3Y9.61%
ROICexcg growth 5Y34.61%
ROICexc growth 3Y11.61%
ROICexc growth 5Y35.76%
OM growth 3Y8.27%
OM growth 5Y29.83%
PM growth 3Y79.7%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5Y3.58%
F-Score8
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 108.66% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 4.47 | ||
| Cash Conversion | 40.52% | ||
| Profit Quality | 10.02% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 3.98 |
F-Score8
WACC11.26%
ROIC/WACC0.98
Cap/Depr(3y)103.54%
Cap/Depr(5y)85.92%
Cap/Sales(3y)1.16%
Cap/Sales(5y)1.05%
Profit Quality(3y)218.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.74%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%-3.77%
EPS Next Y43.3%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.77%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-13.76%
Revenue Next Year-1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y20.23%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year197.89%
EBIT Next 3Y64.71%
EBIT Next 5YN/A
FCF growth 1Y-72.47%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y-57.79%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%