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. While REVG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REVG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year REVG was profitable.
REVG had a positive operating cash flow in the past year.
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
The Return On Assets of REVG (7.89%) is better than 70.31% of its industry peers.
REVG has a better Return On Equity (27.08%) than 92.97% of its industry peers.
REVG's Return On Invested Capital of 15.90% is amongst the best of the industry. REVG outperforms 88.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 10.71%.
The last Return On Invested Capital (15.90%) for REVG is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 27.08% | ||
| ROIC | 15.9% |
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 (4.16%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG has a Operating Margin (6.46%) which is in line with its industry peers.
In the last couple of years the Operating Margin of REVG has grown nicely.
Looking at the Gross Margin, with a value of 13.84%, REVG is doing worse than 84.38% of the companies in the same industry.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.46% | ||
| PM (TTM) | 4.16% | ||
| GM | 13.84% |
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 just above the Cost of Capital (WACC), so REVG is still creating some 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.
Compared to 1 year ago, REVG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.59 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG's Altman-Z score of 4.59 is fine compared to the rest of the industry. REVG outperforms 73.44% of its industry peers.
REVG has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
REVG has a Debt to FCF ratio of 0.82. This is amongst the best in the industry. REVG outperforms 89.06% of its industry peers.
REVG has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, REVG is in line with its industry, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.5
WACC10.57%
2.3 Liquidity
A Current Ratio of 1.66 indicates that REVG should not have too much problems paying its short term obligations.
REVG has a worse Current ratio (1.66) than 67.97% of its industry peers.
REVG has a Quick Ratio of 1.66. This is a bad value and indicates that REVG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, REVG is doing worse than 91.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
Measured over the past years, REVG shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.36% on average per year.
The Revenue has decreased by -9.50% in the past year.
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)37.5%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%79.49%
Revenue 1Y (TTM)-9.5%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%1.98%
3.2 Future
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.79% yearly.
Based on estimates for the next years, REVG will show a small growth in Revenue. The Revenue will grow by 4.52% on average per year.
EPS Next Y56.02%
EPS Next 2Y46.72%
EPS Next 3Y39.79%
EPS Next 5YN/A
Revenue Next Year1.57%
Revenue Next 2Y4.2%
Revenue Next 3Y4.52%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 24.04, REVG is valued on the expensive side.
REVG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, REVG is valued at the same level.
With a Price/Forward Earnings ratio of 14.32, REVG is valued correctly.
REVG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 74.22% of the companies in the same industry.
REVG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REVG.
76.56% 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 | 16.29 | ||
| EV/EBITDA | 15.41 |
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.
A more expensive valuation may be justified as REVG's earnings are expected to grow with 39.79% in the coming years.
PEG (NY)0.43
PEG (5Y)0.82
EPS Next 2Y46.72%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, REVG is not a good candidate for dividend investing.
REVG's Dividend Yield is comparable with the industry average which is at 1.87.
With a Dividend Yield of 0.52, REVG pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
13.93% of the earnings are spent on dividend by REVG. This is a low number and sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.93%
EPS Next 2Y46.72%
EPS Next 3Y39.79%
50.25
+0.7 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners109.84%
Inst Owner Change1.47%
Ins Owners1.77%
Ins Owner Change-0.91%
Market Cap2.60B
Analysts51.11
Price Target46.16 (-8.14%)
Short Float %3.89%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP13.93%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.24%
Min EPS beat(2)20.5%
Max EPS beat(2)47.98%
EPS beat(4)4
Avg EPS beat(4)20.48%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)36.59%
EPS beat(12)12
Avg EPS beat(12)237.54%
EPS beat(16)14
Avg EPS beat(16)177.42%
Revenue beat(2)2
Avg Revenue beat(2)3.33%
Min Revenue beat(2)2.2%
Max Revenue beat(2)4.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)2.91%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)33.09%
PT rev (3m)29.75%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)5.47%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.11 | ||
| P/FCF | 16.29 | ||
| P/OCF | 13.89 | ||
| P/B | 7.26 | ||
| P/tB | 19.31 | ||
| EV/EBITDA | 15.41 |
EPS(TTM)2.09
EY4.16%
EPS(NY)3.51
Fwd EY6.98%
FCF(TTM)3.08
FCFY6.14%
OCF(TTM)3.62
OCFY7.2%
SpS45.11
BVpS6.92
TBVpS2.6
PEG (NY)0.43
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 27.08% | ||
| ROCE | 20.71% | ||
| ROIC | 15.9% | ||
| ROICexc | 16.55% | ||
| ROICexgc | 24.33% | ||
| OM | 6.46% | ||
| PM (TTM) | 4.16% | ||
| GM | 13.84% | ||
| FCFM | 6.84% |
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 Turnover1.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 112.25% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 7.07 | ||
| Cash Conversion | 106.74% | ||
| Profit Quality | 164.5% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.59 |
F-Score6
WACC10.57%
ROIC/WACC1.5
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)37.5%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%79.49%
EPS Next Y56.02%
EPS Next 2Y46.72%
EPS Next 3Y39.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.5%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%1.98%
Revenue Next Year1.57%
Revenue Next 2Y4.2%
Revenue Next 3Y4.52%
Revenue Next 5YN/A
EBIT growth 1Y44.39%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year202.73%
EBIT Next 3Y62.26%
EBIT Next 5YN/A
FCF growth 1Y250.33%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y158.15%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%