REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
Taking everything into account, REVG scores 6 out of 10 in our fundamental rating. REVG was compared to 128 industry peers in the Machinery industry. REVG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. REVG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make REVG suitable for value 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.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.50%, REVG is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Equity of REVG (21.71%) is better than 82.81% of its industry peers.
REVG's Return On Invested Capital of 12.12% is fine compared to the rest of the industry. REVG outperforms 76.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 10.75%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(12.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 21.71% | ||
| ROIC | 12.12% |
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
The Profit Margin of REVG (4.01%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG's Operating Margin of 5.50% is on the low side compared to the rest of the industry. REVG is outperformed by 61.72% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
The Gross Margin of REVG (13.12%) is worse than 85.94% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 4.01% | ||
| GM | 13.12% |
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
REVG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
REVG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, REVG has less shares outstanding
REVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.88 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG has a Altman-Z score of 3.88. This is in the better half of the industry: REVG outperforms 67.97% of its industry peers.
REVG has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
The Debt to FCF ratio of REVG (1.59) is better than 80.47% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that REVG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, REVG is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.13
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.93 indicates that REVG should not have too much problems paying its short term obligations.
REVG has a Current ratio (1.93) which is in line with its industry peers.
A Quick Ratio of 0.55 indicates that REVG may have some problems paying its short term obligations.
The Quick ratio of REVG (0.55) is worse than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.27% over the past year.
REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
The Revenue for REVG has decreased by -12.16% in the past year. This is quite bad
Measured over the past years, REVG shows a decrease in Revenue. The Revenue has been decreasing by -0.20% on average per year.
EPS 1Y (TTM)20.27%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%60%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-10.39%
3.2 Future
The Earnings Per Share is expected to grow by 33.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y47.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
EPS Next 5YN/A
Revenue Next Year0.49%
Revenue Next 2Y3.68%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 16.38, which indicates a correct valuation of REVG.
REVG's Price/Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 63.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. REVG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.49, the valuation of REVG can be described as very reasonable.
91.41% of the companies in the same industry are more expensive than REVG, based on the Price/Forward Earnings ratio.
REVG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REVG is cheaper than 61.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REVG is valued a bit cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.12 | ||
| EV/EBITDA | 10.82 |
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.
REVG has a very decent profitability rating, which may justify a higher PE ratio.
REVG's earnings are expected to grow with 33.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.56
EPS Next 2Y37.31%
EPS Next 3Y33.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, REVG is not a good candidate for dividend investing.
REVG's Dividend Yield is comparable with the industry average which is at 2.12.
With a Dividend Yield of 0.80, REVG pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
207.09% of the earnings are spent on dividend by REVG. This is not a sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP207.09%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
29.15
-0.67 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change0.19%
Ins Owners1.66%
Ins Owner Change0.5%
Market Cap1.51B
Analysts78
Price Target35.57 (22.02%)
Short Float %4.25%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP207.09%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.01%
Min EPS beat(2)2.04%
Max EPS beat(2)47.98%
EPS beat(4)4
Avg EPS beat(4)26.79%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)44.93%
EPS beat(12)11
Avg EPS beat(12)233.51%
EPS beat(16)14
Avg EPS beat(16)181.81%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)4.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)2.07%
Revenue beat(12)7
Avg Revenue beat(12)2.3%
Revenue beat(16)7
Avg Revenue beat(16)0.63%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)3.23%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.65 | ||
| P/FCF | 17.12 | ||
| P/OCF | 13.7 | ||
| P/B | 3.51 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 10.82 |
EPS(TTM)1.78
EY6.11%
EPS(NY)3.07
Fwd EY10.54%
FCF(TTM)1.7
FCFY5.84%
OCF(TTM)2.13
OCFY7.3%
SpS44.88
BVpS8.3
TBVpS3.8
PEG (NY)0.34
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 21.71% | ||
| ROCE | 15.79% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.61% | ||
| ROICexgc | 18.01% | ||
| OM | 5.5% | ||
| PM (TTM) | 4.01% | ||
| GM | 13.12% | ||
| FCFM | 3.79% |
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-Score6
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 88.35% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 5.72 | ||
| Cash Conversion | 72.18% | ||
| Profit Quality | 94.52% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 3.88 |
F-Score6
WACC10.71%
ROIC/WACC1.13
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)20.27%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%60%
EPS Next Y47.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-10.39%
Revenue Next Year0.49%
Revenue Next 2Y3.68%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y19.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year205.96%
EBIT Next 3Y64.07%
EBIT Next 5YN/A
FCF growth 1Y36.86%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y24.43%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%