REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
50.94 USD
-1.63 (-3.1%)
50.85 USD
-0.09 (-0.18%)
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. REVG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. REVG is not valued too expensively and it also shows a decent growth rate. These ratings could make REVG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year REVG was profitable.
In the past year REVG had a positive cash flow from operations.
REVG had positive earnings in 4 of the past 5 years.
REVG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.86%, REVG is doing good in the industry, outperforming 78.46% of the companies in the same industry.
The Return On Equity of REVG (27.89%) is better than 93.85% of its industry peers.
With an excellent Return On Invested Capital value of 18.41%, REVG belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for REVG is below the industry average of 10.25%.
The last Return On Invested Capital (18.41%) for REVG is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 27.89% | ||
| ROIC | 18.41% |
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 has a Profit Margin of 4.51%. This is comparable to the rest of the industry: REVG outperforms 50.77% of its industry peers.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG has a Operating Margin (7.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of REVG has grown nicely.
The Gross Margin of REVG (14.43%) is worse than 82.31% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 4.51% | ||
| GM | 14.43% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REVG is creating value.
Compared to 1 year ago, REVG has less shares outstanding
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
The debt/assets ratio for REVG has been reduced compared to a year ago.
2.2 Solvency
REVG has an Altman-Z score of 4.74. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.74, REVG is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Debt to FCF ratio of REVG is 0.45, which is an excellent value as it means it would take REVG, only 0.45 years of fcf income to pay off all of its debts.
REVG has a Debt to FCF ratio of 0.45. This is amongst the best in the industry. REVG outperforms 91.54% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that REVG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, REVG is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 4.74 |
ROIC/WACC1.83
WACC10.08%
2.3 Liquidity
REVG has a Current Ratio of 1.63. This is a normal value and indicates that REVG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.63, REVG is not doing good in the industry: 68.46% of the companies in the same industry are doing better.
A Quick Ratio of 0.53 indicates that REVG may have some problems paying its short term obligations.
REVG has a worse Quick ratio (0.53) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.45%, which is quite impressive.
The Earnings Per Share has been growing by 29.36% on average over the past years. This is a very strong growth
REVG shows a decrease in Revenue. In the last year, the revenue decreased by -3.17%.
The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)45.45%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%64.58%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%11.3%
3.2 Future
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.48% yearly.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y66%
EPS Next 2Y48.41%
EPS Next 3Y40.48%
EPS Next 5YN/A
Revenue Next Year2.59%
Revenue Next 2Y5.14%
Revenue Next 3Y5.92%
Revenue Next 5Y5.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.23 indicates a rather expensive valuation of REVG.
The rest of the industry has a similar Price/Earnings ratio as REVG.
When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (25.56), we can say REVG is valued inline with the index average.
The Price/Forward Earnings ratio is 14.19, which indicates a correct valuation of REVG.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than 72.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, REVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REVG is on the same level as its industry peers.
84.62% of the companies in the same industry are more expensive than REVG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.45 | ||
| EV/EBITDA | 12.93 |
4.3 Compensation for Growth
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 40.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.72
EPS Next 2Y48.41%
EPS Next 3Y40.48%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.45, REVG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of REVG grows each year by 76.61%, which is quite nice.
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
REVG pays out 12.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.41%
EPS Next 2Y48.41%
EPS Next 3Y40.48%
50.94
-1.63 (-3.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change2.94%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.49B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82
Price Target68.08 (33.65%)
Short Float %6.26%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP12.41%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.4%
Min EPS beat(2)20.5%
Max EPS beat(2)22.29%
EPS beat(4)4
Avg EPS beat(4)23.21%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)33.27%
EPS beat(12)12
Avg EPS beat(12)238.91%
EPS beat(16)14
Avg EPS beat(16)178.3%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.22%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)9
Avg Revenue beat(12)3.06%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)1.52%
PT rev (3m)36.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 14.19 | ||
| P/S | 1.04 | ||
| P/FCF | 12.45 | ||
| P/OCF | 10.68 | ||
| P/B | 6.42 | ||
| P/tB | 15.19 | ||
| EV/EBITDA | 12.93 |
EPS(TTM)2.4
EY4.71%
EPS(NY)3.59
Fwd EY7.05%
FCF(TTM)4.09
FCFY8.03%
OCF(TTM)4.77
OCFY9.36%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.32
PEG (5Y)0.72
Graham Number20.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 27.89% | ||
| ROCE | 23.98% | ||
| ROIC | 18.41% | ||
| ROICexc | 19.38% | ||
| ROICexgc | 28.82% | ||
| OM | 7.19% | ||
| PM (TTM) | 4.51% | ||
| GM | 14.43% | ||
| FCFM | 8.33% |
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%
ROICexgc growth 3Y9.61%
ROICexgc 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-Score7
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 137.76% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 8.89 | ||
| Cash Conversion | 118.47% | ||
| Profit Quality | 184.82% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.74 |
F-Score7
WACC10.08%
ROIC/WACC1.83
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)45.45%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%64.58%
EPS Next Y66%
EPS Next 2Y48.41%
EPS Next 3Y40.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%11.3%
Revenue Next Year2.59%
Revenue Next 2Y5.14%
Revenue Next 3Y5.92%
Revenue Next 5Y5.28%
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year225.22%
EBIT Next 3Y56.26%
EBIT Next 5Y41.64%
FCF growth 1Y159.56%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y120.66%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%
REV GROUP INC / REVG FAQ
What is the fundamental rating for REVG stock?
ChartMill assigns a fundamental rating of 6 / 10 to REVG.
What is the valuation status for REVG stock?
ChartMill assigns a valuation rating of 6 / 10 to REV GROUP INC (REVG). This can be considered as Fairly Valued.
What is the profitability of REVG stock?
REV GROUP INC (REVG) has a profitability rating of 7 / 10.
Can you provide the financial health for REVG stock?
The financial health rating of REV GROUP INC (REVG) is 7 / 10.
Can you provide the expected EPS growth for REVG stock?
The Earnings per Share (EPS) of REV GROUP INC (REVG) is expected to grow by 66% in the next year.