REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While REVG has a great profitability rating, there are some minor concerns on its financial health. REVG is not valued too expensively and it also shows a decent growth rate.
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.
REVG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of REVG (21.24%) is better than 98.43% of its industry peers.
REVG has a better Return On Equity (59.20%) than 97.64% of its industry peers.
REVG has a Return On Invested Capital of 10.98%. This is in the better half of the industry: REVG outperforms 74.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 11.19%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(10.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.24% | ||
| ROE | 59.2% | ||
| ROIC | 10.98% |
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 better Profit Margin (10.82%) than 74.80% of its industry peers.
REVG's Profit Margin has improved in the last couple of years.
REVG has a Operating Margin of 4.47%. This is in the lower half of the industry: REVG underperforms 63.78% of its industry peers.
In the last couple of years the Operating Margin of REVG has grown nicely.
With a Gross Margin value of 12.49%, REVG is not doing good in the industry: 88.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of REVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 10.82% | ||
| GM | 12.49% |
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 just above the Cost of Capital (WACC), so REVG is still creating some value.
REVG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, REVG has less shares outstanding
Compared to 1 year ago, REVG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.14 indicates that REVG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.14, REVG is doing good in the industry, outperforming 63.78% of the companies in the same industry.
The Debt to FCF ratio of REVG is 3.29, which is a good value as it means it would take REVG, 3.29 years of fcf income to pay off all of its debts.
REVG has a Debt to FCF ratio of 3.29. This is in the better half of the industry: REVG outperforms 65.35% of its industry peers.
REVG has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
REVG has a Debt to Equity ratio of 0.20. This is in the better half of the industry: REVG outperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.07
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.72 indicates that REVG should not have too much problems paying its short term obligations.
REVG has a Current ratio of 1.72. This is in the lower half of the industry: REVG underperforms 69.29% of its industry peers.
A Quick Ratio of 0.43 indicates that REVG may have some problems paying its short term obligations.
The Quick ratio of REVG (0.43) is worse than 93.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.74%, 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 -9.77%.
The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)20.74%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)-9.77%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-13.76%
3.2 Future
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.71% yearly.
The Revenue is expected to grow by 3.93% on average over the next years.
EPS Next Y43.3%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 21.71, the valuation of REVG can be described as rather expensive.
REVG's Price/Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 63.78% of the companies in the same industry.
REVG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.15, the valuation of REVG can be described as correct.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than 79.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of REVG to the average of the S&P500 Index (24.51), we can say REVG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REVG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.51 | ||
| EV/EBITDA | 14.36 |
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 33.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.74
EPS Next 2Y37.53%
EPS Next 3Y33.71%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 1.65, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
74.53% of the earnings are spent on dividend by REVG. This is not a sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.53%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
REV GROUP INC
NYSE:REVG (1/23/2025, 9:27:50 PM)
After market: 35.3881 0 (-0.01%)35.39
+0.24 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.65%
Inst Owner Change0.08%
Ins Owners1.85%
Ins Owner Change1.63%
Market Cap1.84B
Analysts78
Price Target35.57 (0.51%)
Short Float %3.89%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP74.53%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.71%
Min EPS beat(2)2.04%
Max EPS beat(2)11.38%
EPS beat(4)4
Avg EPS beat(4)30.64%
Min EPS beat(4)2.04%
Max EPS beat(4)63.4%
EPS beat(8)8
Avg EPS beat(8)345.55%
EPS beat(12)11
Avg EPS beat(12)230.87%
EPS beat(16)14
Avg EPS beat(16)186.97%
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-8.19%
Max Revenue beat(2)-2.85%
Revenue beat(4)1
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)3.39%
Revenue beat(12)6
Avg Revenue beat(12)1.88%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)16.74%
PT rev (3m)16.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.08%
EPS NY rev (1m)0%
EPS NY rev (3m)11.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 15.15 | ||
| P/S | 0.78 | ||
| P/FCF | 71.51 | ||
| P/OCF | 34.55 | ||
| P/B | 4.24 | ||
| P/tB | 9.13 | ||
| EV/EBITDA | 14.36 |
EPS(TTM)1.63
EY4.61%
EPS(NY)2.34
Fwd EY6.6%
FCF(TTM)0.49
FCFY1.4%
OCF(TTM)1.02
OCFY2.89%
SpS45.66
BVpS8.35
TBVpS3.87
PEG (NY)0.5
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.24% | ||
| ROE | 59.2% | ||
| ROCE | 14.31% | ||
| ROIC | 10.98% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 16.8% | ||
| OM | 4.47% | ||
| PM (TTM) | 10.82% | ||
| GM | 12.49% | ||
| FCFM | 1.08% |
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-Score8
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 108.66% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 4.47 | ||
| Cash Conversion | 40.52% | ||
| Profit Quality | 10.02% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.14 |
F-Score8
WACC10.26%
ROIC/WACC1.07
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)20.74%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%-3.77%
EPS Next Y43.3%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.77%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-13.76%
Revenue Next Year-1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y20.23%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year197.89%
EBIT Next 3Y64.71%
EBIT Next 5YN/A
FCF growth 1Y-72.47%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y-57.79%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%