REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
60.84 USD
+0.51 (+0.85%)
60.84 USD
0 (0%)
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate. These ratings could make REVG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year REVG was profitable.
In the past year REVG had a positive cash flow from operations.
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
With a decent Return On Assets value of 8.86%, REVG is doing good in the industry, outperforming 76.15% of the companies in the same industry.
REVG has a better Return On Equity (27.89%) than 94.62% 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 94.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 10.00%.
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
REVG has a Profit Margin (4.51%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
Looking at the Operating Margin, with a value of 7.19%, REVG is in line with its industry, outperforming 44.62% of the companies in the same industry.
In the last couple of years the Operating Margin of REVG has grown nicely.
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.
Compared to 1 year ago, REVG has less shares outstanding
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
The debt/assets ratio for REVG has been reduced compared to a year ago.
2.2 Solvency
REVG has an Altman-Z score of 5.07. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
REVG has a Altman-Z score of 5.07. This is in the better half of the industry: REVG outperforms 78.46% of its industry peers.
REVG has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.45, REVG belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.87
WACC9.83%
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's Current ratio of 1.63 is on the low side compared to the rest of the industry. REVG is outperformed by 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.
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
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.
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 -3.17% in the past year.
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
The Earnings Per Share is expected to grow by 39.92% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y66%
EPS Next 2Y48.07%
EPS Next 3Y39.92%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y5.2%
Revenue Next 3Y6.01%
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.
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
A Price/Earnings ratio of 25.35 indicates a quite expensive valuation of REVG.
REVG's Price/Earnings is on the same level as the industry average.
REVG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.02, which indicates a rather expensive current valuation of REVG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 64.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, REVG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REVG indicates a rather cheap valuation: REVG is cheaper than 82.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 15.26 |
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 39.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)0.86
EPS Next 2Y48.07%
EPS Next 3Y39.92%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.42%, which is pretty low.
REVG's Dividend Yield is comparable with the industry average which is at 1.80.
Compared to an average S&P500 Dividend Yield of 2.34, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.41%
EPS Next 2Y48.07%
EPS Next 3Y39.92%
60.84
+0.51 (+0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change-0.04%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.97B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82.22
Price Target67.07 (10.24%)
Short Float %4.8%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)0%
PT rev (3m)45.3%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)10.74%
EPS NY rev (1m)8.28%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 17.02 | ||
| P/S | 1.24 | ||
| P/FCF | 14.87 | ||
| P/OCF | 12.75 | ||
| P/B | 7.67 | ||
| P/tB | 18.15 | ||
| EV/EBITDA | 15.26 |
EPS(TTM)2.4
EY3.94%
EPS(NY)3.57
Fwd EY5.87%
FCF(TTM)4.09
FCFY6.72%
OCF(TTM)4.77
OCFY7.84%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.38
PEG (5Y)0.86
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 | 5.07 |
F-Score7
WACC9.83%
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 2Y48.07%
EPS Next 3Y39.92%
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 2Y5.2%
Revenue Next 3Y6.01%
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 6 / 10 to REV GROUP INC (REVG). This can be considered as Fairly Valued.
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.