REV GROUP INC (REVG)
US7495271071 - Common Stock
REVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While REVG belongs to the best of the industry regarding profitability, 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.
In the past year REVG had a positive cash flow from operations.
REVG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
REVG's Return On Assets of 21.24% is amongst the best of the industry. REVG outperforms 99.23% of its industry peers.
Looking at the Return On Equity, with a value of 59.20%, REVG belongs to the top of the industry, outperforming 97.69% of the companies in the same industry.
REVG has a Return On Invested Capital of 10.98%. This is in the better half of the industry: REVG outperforms 73.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REVG is below the industry average of 11.13%.
The last Return On Invested Capital (10.98%) for REVG is above the 3 year average (7.94%), which is a sign of increasing profitability.
| 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 Profit Margin of 10.82%. This is in the better half of the industry: REVG outperforms 75.38% 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 62.31% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
REVG's Gross Margin of 12.49% is on the low side compared to the rest of the industry. REVG is outperformed by 86.92% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REVG is creating some value.
The number of shares outstanding for REVG has been reduced compared to 1 year ago.
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
An Altman-Z score of 4.00 indicates that REVG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.00, REVG is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
REVG has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as REVG would need 3.29 years to pay back of 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 66.92% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that REVG is not too dependend on debt financing.
REVG's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. REVG outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4 |
ROIC/WACC1.14
WACC9.67%
2.3 Liquidity
REVG has a Current Ratio of 1.72. This is a normal value and indicates that REVG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of REVG (1.72) is worse than 69.23% of its industry peers.
REVG has a Quick Ratio of 1.72. 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's Quick ratio of 0.43 is on the low side compared to the rest of the industry. REVG is outperformed by 93.08% 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.
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 -9.77%.
REVG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
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.
REVG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y43.3%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
EPS Next 5YN/A
Revenue Next Year-1.11%
Revenue Next 2Y2.82%
Revenue Next 3Y4%
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.
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 18.92, 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 66.15% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, REVG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.20, REVG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 80.00% of the companies listed in the same industry.
REVG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REVG is cheaper than 60.77% of the companies in the same industry.
REVG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.31 | ||
| EV/EBITDA | 13.03 |
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 33.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)0.64
EPS Next 2Y37.53%
EPS Next 3Y33.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
REVG pays out 74.53% of its income as dividend. This is not a sustainable payout ratio.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.53%
EPS Next 2Y37.53%
EPS Next 3Y33.71%
REV GROUP INC
NYSE:REVG (12/23/2024, 11:56:27 AM)
30.84
-0.94 (-2.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.65%
Inst Owner Change4.06%
Ins Owners1.85%
Ins Owner Change2.52%
Market Cap1.61B
Analysts78
Price Target30.47 (-1.2%)
Short Float %5.68%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Dividend Growth(5Y)76.61%
DP74.53%
Div Incr Years1
Div Non Decr Years4
Ex-Date
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)0%
PT rev (3m)2.58%
EPS NQ rev (1m)19.08%
EPS NQ rev (3m)19.08%
EPS NY rev (1m)8.75%
EPS NY rev (3m)11.17%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-4.15%
Revenue NY rev (3m)-4.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 13.2 | ||
| P/S | 0.68 | ||
| P/FCF | 62.31 | ||
| P/OCF | 30.11 | ||
| P/B | 3.69 | ||
| P/tB | 7.96 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)1.63
EY5.29%
EPS(NY)2.34
Fwd EY7.57%
FCF(TTM)0.49
FCFY1.6%
OCF(TTM)1.02
OCFY3.32%
SpS45.66
BVpS8.35
TBVpS3.87
PEG (NY)0.44
PEG (5Y)0.64
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 |
F-Score8
WACC9.67%
ROIC/WACC1.14
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-1.11%
Revenue Next 2Y2.82%
Revenue Next 3Y4%
Revenue Next 5YN/A
EBIT growth 1Y20.23%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year195.06%
EBIT Next 3YN/A
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%