REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
59.36 USD
+0.2 (+0.34%)
60.54 USD
+1.18 (+1.99%)
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. REVG has an excellent profitability rating, but 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
REVG had positive earnings in the past year.
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
REVG's Return On Assets of 8.86% is fine compared to the rest of the industry. REVG outperforms 75.78% of its industry peers.
The Return On Equity of REVG (27.89%) is better than 93.75% of its industry peers.
With an excellent Return On Invested Capital value of 18.41%, REVG belongs to the best of the industry, outperforming 94.53% 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 10.02%.
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
REVG has a Profit Margin (4.51%) which is in line with its industry peers.
REVG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.19%, REVG is in line with its industry, outperforming 44.53% of the companies in the same industry.
In the last couple of years the Operating Margin of REVG has grown nicely.
REVG's Gross Margin of 14.43% is on the low side compared to the rest of the industry. REVG is outperformed by 82.03% 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
REVG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for REVG has been reduced compared to 1 year ago.
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.03 indicates that REVG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.03, REVG is doing good in the industry, outperforming 78.91% 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.
The Debt to FCF ratio of REVG (0.45) is better than 90.63% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that REVG is not too dependend on debt financing.
REVG's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. REVG outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.78
WACC10.33%
2.3 Liquidity
A Current Ratio of 1.63 indicates that REVG should not have too much problems paying its short term obligations.
REVG has a Current ratio of 1.63. This is in the lower half of the industry: REVG underperforms 67.97% 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 89.06% of the companies in the same industry.
| 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.
REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
REVG shows a decrease in Revenue. In the last year, the revenue decreased by -3.17%.
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)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
The Earnings Per Share is expected to grow by 36.73% on average over the next years. This is a very strong growth
Based on estimates for the next years, REVG will show a small growth in Revenue. The Revenue will grow by 6.33% on average per year.
EPS Next Y53.31%
EPS Next 2Y44.93%
EPS Next 3Y36.73%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y5.39%
Revenue Next 3Y6.33%
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.
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 24.73.
Compared to the rest of the industry, the Price/Earnings ratio of REVG is on the same level as its industry peers.
REVG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.34, which indicates a rather expensive current valuation of REVG.
REVG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 64.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of REVG to the average of the S&P500 Index (22.88), we can say REVG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, REVG is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 14.97 |
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.
The decent profitability rating of REVG may justify a higher PE ratio.
REVG's earnings are expected to grow with 36.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)0.84
EPS Next 2Y44.93%
EPS Next 3Y36.73%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
12.41% of the earnings are spent on dividend by REVG. This is a low number and 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 2Y44.93%
EPS Next 3Y36.73%
59.36
+0.2 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change-7.62%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.90B
Analysts82.22
Price Target67.07 (12.99%)
Short Float %4.88%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)34.18%
PT rev (3m)87.86%
EPS NQ rev (1m)7.93%
EPS NQ rev (3m)8.93%
EPS NY rev (1m)0.41%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 17.34 | ||
| P/S | 1.21 | ||
| P/FCF | 14.51 | ||
| P/OCF | 12.44 | ||
| P/B | 7.48 | ||
| P/tB | 17.71 | ||
| EV/EBITDA | 14.97 |
EPS(TTM)2.4
EY4.04%
EPS(NY)3.42
Fwd EY5.77%
FCF(TTM)4.09
FCFY6.89%
OCF(TTM)4.77
OCFY8.04%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.46
PEG (5Y)0.84
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%
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-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 | 5.03 |
F-Score7
WACC10.33%
ROIC/WACC1.78
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 Y53.31%
EPS Next 2Y44.93%
EPS Next 3Y36.73%
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 Year2.72%
Revenue Next 2Y5.39%
Revenue Next 3Y6.33%
Revenue Next 5YN/A
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year206.14%
EBIT Next 3Y65.38%
EBIT Next 5YN/A
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%