REV GROUP INC (REVG)
US7495271071 - Common Stock
REVG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. There are concerns on the financial health of REVG while its profitability can be described as average. REVG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
REVG had positive earnings in the past year.
In the past year REVG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: REVG reported negative net income in multiple years.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
REVG has a better Return On Assets (18.40%) than 97.64% of its industry peers.
REVG has a Return On Equity of 62.24%. This is amongst the best in the industry. REVG outperforms 97.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.46%, REVG is in the better half of the industry, outperforming 70.87% 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 11.01%.
The last Return On Invested Capital (10.46%) for REVG is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 62.24% | ||
| ROIC | 10.46% |
ROA(3y)2.64%
ROA(5y)0.94%
ROE(3y)7%
ROE(5y)2.42%
ROIC(3y)6.96%
ROIC(5y)4.79%
1.3 Margins
REVG's Profit Margin of 9.92% is fine compared to the rest of the industry. REVG outperforms 72.44% of its industry peers.
In the last couple of years the Profit Margin of REVG has grown nicely.
With a Operating Margin value of 4.60%, REVG is not doing good in the industry: 62.99% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of REVG has grown nicely.
REVG's Gross Margin of 12.68% is on the low side compared to the rest of the industry. REVG is outperformed by 87.40% of its industry peers.
In the last couple of years the Gross Margin of REVG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 9.92% | ||
| GM | 12.68% |
OM growth 3Y137.64%
OM growth 5Y2.53%
PM growth 3YN/A
PM growth 5Y25.76%
GM growth 3Y6.16%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REVG is creating some value.
Compared to 1 year ago, REVG has more shares outstanding
REVG has less shares outstanding than it did 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.59 indicates that REVG is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.59, REVG perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
REVG has a debt to FCF ratio of 86.00. This is a negative value and a sign of low solvency as REVG would need 86.00 years to pay back of all of its debts.
The Debt to FCF ratio of REVG (86.00) is worse than 66.14% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that REVG is somewhat dependend on debt financing.
REVG has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 86 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.08
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.85 indicates that REVG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.85, REVG is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
REVG has a Quick Ratio of 1.85. This is a bad value and indicates that REVG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of REVG (0.57) is worse than 90.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
The Earnings Per Share has been growing slightly by 5.15% on average over the past years.
REVG shows a decrease in Revenue. In the last year, the revenue decreased by -3.61%.
Measured over the past years, REVG shows a small growth in Revenue. The Revenue has been growing by 2.07% on average per year.
EPS 1Y (TTM)50%
EPS 3Y103.58%
EPS 5Y5.15%
EPS Q2Q%37.14%
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y5.02%
Revenue growth 5Y2.07%
Sales Q2Q%-14.79%
3.2 Future
Based on estimates for the next years, REVG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.03% on average per year.
Based on estimates for the next years, REVG will show a decrease in Revenue. The Revenue will decrease by -4.80% on average per year.
EPS Next Y19.53%
EPS Next 2Y26.14%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue Next Year-8.82%
Revenue Next 2Y-3.01%
Revenue Next 3Y-4.8%
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 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.07, which indicates a rather expensive current valuation of REVG.
Compared to the rest of the industry, the Price/Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 72.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (28.96), we can say REVG is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.88, which indicates a correct valuation of REVG.
Based on the Price/Forward Earnings ratio, REVG is valued cheaper than 81.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, REVG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REVG is cheaper than 66.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REVG is valued a bit more expensive than 66.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 620.26 | ||
| EV/EBITDA | 12.28 |
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 17.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)3.51
EPS Next 2Y26.14%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, REVG is not a good candidate for dividend investing.
REVG's Dividend Yield is comparable with the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 2.23, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of REVG has a limited annual growth rate of 0.18%.
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)0.18%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
78.01% of the earnings are spent on dividend by REVG. This is not a sustainable payout ratio.
The dividend of REVG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.01%
EPS Next 2Y26.14%
EPS Next 3Y17.03%
REV GROUP INC
NYSE:REVG (11/21/2024, 8:04:00 PM)
After market: 29.82 0 (0%)29.82
+0.61 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 13.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)3.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 62.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.6% | ||
| PM (TTM) | 9.92% | ||
| GM | 12.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y103.58%
EPS 5Y
EPS Q2Q%
EPS Next Y19.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y5.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y