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%)
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. REVG gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year REVG was profitable.
REVG had a positive operating cash flow in the past year.
Of the past 5 years REVG 4 years were profitable.
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 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's Return On Invested Capital of 18.41% is amongst the best of the industry. REVG outperforms 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 10.24%.
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
The Profit Margin of REVG (4.51%) is comparable to the rest of the 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.
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 83.08% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REVG is creating value.
Compared to 1 year ago, REVG has less shares outstanding
REVG has less shares outstanding than it did 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 4.72. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.72, REVG is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
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.
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.
With a decent Debt to Equity ratio value of 0.23, REVG is doing good in 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 | 4.72 |
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.
Looking at the Current ratio, with a value of 1.63, REVG is doing worse than 68.46% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that REVG may have some problems paying its short term obligations.
REVG's Quick ratio of 0.53 is on the low side compared to the rest of the industry. REVG is outperformed by 90.00% 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.
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.
Looking at the last year, REVG shows a decrease in Revenue. The Revenue has decreased by -3.17% in the last 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 40.48% 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 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
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
With a Price/Earnings ratio of 20.97, REVG is valued on the expensive side.
REVG's Price/Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 61.54% of the companies in the same industry.
REVG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 14.02, which indicates a correct valuation of REVG.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than 74.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. REVG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
63.08% of the companies in the same industry are more expensive than REVG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, REVG is valued cheaper than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 12.77 |
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.
REVG has a very decent profitability rating, which 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)0.32
PEG (5Y)0.71
EPS Next 2Y48.41%
EPS Next 3Y40.48%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.49%, which is pretty low.
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.
REVG's earnings are growing slower than its dividend. 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 Change2.88%
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)-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 | 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 | 12.77 |
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 | 4.72 |
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.