REV GROUP INC (REVG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REVG - US7495271071 - Common Stock
53.57 USD
+1.09 (+2.08%)
53.57 USD
0 (0%)
Taking everything into account, REVG scores 6 out of 10 in our fundamental rating. REVG was compared to 130 industry peers in the Machinery industry. REVG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. REVG is valued quite cheap, while showing a decent growth score. This is a good combination! This makes REVG very considerable for value and quality investing!
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.
Of the past 5 years REVG 4 years were profitable.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
REVG's Return On Assets of 8.86% is fine compared to the rest of the industry. REVG outperforms 78.46% of its industry peers.
REVG has a Return On Equity of 27.89%. This is amongst the best in the industry. REVG outperforms 93.85% of its industry peers.
REVG has a better Return On Invested Capital (18.41%) than 93.85% of its industry peers.
REVG had an Average Return On Invested Capital over the past 3 years of 7.94%. This is below the industry average of 10.39%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(18.41%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 4.51%, REVG perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
The Operating Margin of REVG (7.19%) is comparable to the rest of the industry.
REVG's Operating Margin has improved in the last couple of years.
REVG has a worse Gross Margin (14.43%) than 83.08% of its industry peers.
In the last couple of years the Gross Margin of REVG has grown nicely.
| 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
REVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 4.79 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG's Altman-Z score of 4.79 is fine compared to the rest of the industry. REVG outperforms 76.15% of its industry peers.
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.
REVG has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.23, 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 | 4.79 |
ROIC/WACC1.87
WACC9.85%
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.
REVG has a worse Current ratio (1.63) than 69.23% of its industry peers.
REVG has a Quick Ratio of 1.63. 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 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.45% over the past year.
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%.
REVG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
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.
Based on estimates for the next years, REVG will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
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
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.
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
REVG is valuated rather expensively with a Price/Earnings ratio of 22.32.
REVG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (26.15), we can say REVG is valued inline with the index average.
A Price/Forward Earnings ratio of 14.92 indicates a correct valuation of REVG.
74.62% of the companies in the same industry are more expensive than REVG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, REVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REVG is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
86.15% 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 | 13.1 | ||
| EV/EBITDA | 13.31 |
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.
The decent profitability rating of REVG 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)0.34
PEG (5Y)0.76
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.
REVG's Dividend Yield is comparable with the industry average which is at 1.90.
With a Dividend Yield of 0.45, REVG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
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%
53.57
+1.09 (+2.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change2.88%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.61B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82
Price Target64.06 (19.58%)
Short Float %2.76%
Short Ratio1.43
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)-4.49%
PT rev (3m)28.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)8.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 14.92 | ||
| P/S | 1.09 | ||
| P/FCF | 13.1 | ||
| P/OCF | 11.23 | ||
| P/B | 6.75 | ||
| P/tB | 15.98 | ||
| EV/EBITDA | 13.31 |
EPS(TTM)2.4
EY4.48%
EPS(NY)3.59
Fwd EY6.7%
FCF(TTM)4.09
FCFY7.63%
OCF(TTM)4.77
OCFY8.9%
SpS49.11
BVpS7.93
TBVpS3.35
PEG (NY)0.34
PEG (5Y)0.76
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 | 4.79 |
F-Score7
WACC9.85%
ROIC/WACC1.87
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 7 / 10 to REV GROUP INC (REVG). This can be considered as Undervalued.
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.