REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
52.19 USD
-0.38 (-0.72%)
52.19 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. Both the health and profitability get an excellent rating, making REVG a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on REVG. These ratings would make REVG suitable for value and quality investing!
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 has a better Return On Assets (8.86%) than 75.38% of its industry peers.
With an excellent Return On Equity value of 27.89%, REVG belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
REVG's Return On Invested Capital of 18.41% is amongst the best of the industry. REVG outperforms 93.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REVG is below the industry average of 10.24%.
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's Profit Margin of 4.51% is in line compared to the rest of the industry. REVG outperforms 47.69% of its industry peers.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG has a Operating Margin (7.19%) which is in line with its industry peers.
REVG's Operating Margin has improved in the last couple of years.
REVG's Gross Margin of 14.43% is on the low side compared to the rest of the industry. REVG is outperformed by 82.31% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REVG 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
REVG has an Altman-Z score of 4.79. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.79, REVG is doing good in the industry, outperforming 75.38% 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.
REVG's Debt to FCF ratio of 0.45 is amongst the best of the industry. REVG outperforms 90.77% 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.
The Debt to Equity ratio of REVG (0.23) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.85
WACC9.97%
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 66.92% of its industry peers.
A Quick Ratio of 0.53 indicates that REVG may have some problems paying its short term obligations.
REVG has a Quick ratio of 0.53. This is amonst the worse of the industry: REVG underperforms 89.23% of its industry peers.
| 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%.
The Revenue has been decreasing by -0.20% on average over the past years.
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
Based on estimates for the next years, REVG will show a very strong growth in Earnings Per Share. The EPS will grow by 39.55% on average per year.
REVG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.15% yearly.
EPS Next Y66%
EPS Next 2Y48.23%
EPS Next 3Y39.55%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y5.37%
Revenue Next 3Y6.15%
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.
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 21.75, which indicates a rather expensive current valuation of REVG.
60.77% of the companies in the same industry are more expensive than REVG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, REVG is valued at the same level.
With a Price/Forward Earnings ratio of 14.57, REVG is valued correctly.
REVG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 75.38% of the companies in the same industry.
REVG is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, REVG is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 13.33 |
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 39.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)0.74
EPS Next 2Y48.23%
EPS Next 3Y39.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.83, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.45, REVG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
REVG pays out 12.41% of its income as dividend. This is a sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.41%
EPS Next 2Y48.23%
EPS Next 3Y39.55%
52.19
-0.38 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change-0.29%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.55B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82.22
Price Target68.08 (30.45%)
Short Float %6.26%
Short Ratio3.82
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)1.52%
PT rev (3m)47.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 14.57 | ||
| P/S | 1.06 | ||
| P/FCF | 12.76 | ||
| P/OCF | 10.94 | ||
| P/B | 6.58 | ||
| P/tB | 15.57 | ||
| EV/EBITDA | 13.33 |
EPS(TTM)2.4
EY4.6%
EPS(NY)3.58
Fwd EY6.86%
FCF(TTM)4.09
FCFY7.84%
OCF(TTM)4.77
OCFY9.14%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.33
PEG (5Y)0.74
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
WACC9.97%
ROIC/WACC1.85
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 2Y48.23%
EPS Next 3Y39.55%
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 Year2.76%
Revenue Next 2Y5.37%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year225.22%
EBIT Next 3Y56.26%
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%
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.