REV GROUP INC (REVG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REVG - US7495271071 - Common Stock
50.32 USD
+1.47 (+3.01%)
50.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to REVG. 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. REVG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make REVG a good candidate 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.
Of the past 5 years REVG 4 years were profitable.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.86%, REVG is doing good in the industry, outperforming 78.46% of the companies in the same industry.
The Return On Equity of REVG (27.89%) is better than 93.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.41%, REVG belongs to the top of the industry, outperforming 93.85% 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 10.24%.
The last Return On Invested Capital (18.41%) for REVG is above the 3 year average (7.94%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.51%, REVG is in line with its industry, outperforming 50.77% of the companies in the same industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG has a Operating Margin (7.19%) which is comparable to the rest of the industry.
REVG's Operating Margin has improved in the last couple of years.
REVG has a Gross Margin of 14.43%. This is amonst the worse of the industry: REVG underperforms 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REVG is creating value.
The number of shares outstanding for REVG has been reduced compared to 1 year ago.
REVG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, REVG has an improved debt to assets ratio.
2.2 Solvency
REVG has an Altman-Z score of 4.66. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
REVG's Altman-Z score of 4.66 is fine compared to the rest of the industry. REVG outperforms 76.92% 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's Debt to FCF ratio of 0.45 is amongst the best of 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 | 4.66 |
ROIC/WACC1.86
WACC9.91%
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 68.46% 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.
The Quick ratio of REVG (0.53) is worse than 89.23% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 40.48% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.28% on average over the next years.
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
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
The Price/Earnings ratio is 20.97, which indicates a rather expensive current valuation of REVG.
REVG's Price/Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 63.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (25.45), we can say REVG is valued inline with the index average.
REVG is valuated correctly with a Price/Forward Earnings ratio of 14.02.
REVG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 73.08% of the companies in the same industry.
REVG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REVG is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REVG is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 12.41 |
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.
The decent profitability rating of REVG may justify a higher PE ratio.
A more expensive valuation may be justified as REVG's earnings are expected to grow with 40.48% in the coming years.
PEG (NY)0.32
PEG (5Y)0.71
EPS Next 2Y48.41%
EPS Next 3Y40.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.95, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
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 2Y48.41%
EPS Next 3Y40.48%
50.32
+1.47 (+3.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change2.94%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.46B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82
Price Target64.06 (27.31%)
Short Float %4.76%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)36.22%
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)-0.16%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.02 | ||
| P/FCF | 12.3 | ||
| P/OCF | 10.55 | ||
| P/B | 6.34 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)2.4
EY4.77%
EPS(NY)3.59
Fwd EY7.14%
FCF(TTM)4.09
FCFY8.13%
OCF(TTM)4.77
OCFY9.48%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.32
PEG (5Y)0.71
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 | 4.66 |
F-Score7
WACC9.91%
ROIC/WACC1.86
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.