REVOLVE GROUP INC (RVLV) Stock Fundamental Analysis
NYSE:RVLV - New York Stock Exchange, Inc. - US76156B1070 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RVLV. RVLV was compared to 122 industry peers in the Specialty Retail industry. RVLV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RVLV shows excellent growth, but is valued quite expensive already. With these ratings, RVLV could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
RVLV had positive earnings in the past year.
In the past year RVLV had a positive cash flow from operations.
In the past 5 years RVLV has always been profitable.
Each year in the past 5 years RVLV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.07%, RVLV is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
The Return On Equity of RVLV (11.12%) is better than 68.03% of its industry peers.
RVLV's Return On Invested Capital of 9.11% is fine compared to the rest of the industry. RVLV outperforms 71.31% of its industry peers.
RVLV had an Average Return On Invested Capital over the past 3 years of 9.81%. This is below the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 11.12% | ||
| ROIC | 9.11% |
ROA(3y)7.4%
ROA(5y)12.31%
ROE(3y)11.36%
ROE(5y)18.79%
ROIC(3y)9.81%
ROIC(5y)15.41%
1.3 Margins
RVLV's Profit Margin of 4.37% is fine compared to the rest of the industry. RVLV outperforms 73.77% of its industry peers.
In the last couple of years the Profit Margin of RVLV has declined.
RVLV has a Operating Margin of 5.12%. This is in the better half of the industry: RVLV outperforms 68.85% of its industry peers.
In the last couple of years the Operating Margin of RVLV has declined.
RVLV has a better Gross Margin (52.43%) than 80.33% of its industry peers.
In the last couple of years the Gross Margin of RVLV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.12% | ||
| PM (TTM) | 4.37% | ||
| GM | 52.43% |
OM growth 3Y-26.1%
OM growth 5Y-9.84%
PM growth 3Y-26.83%
PM growth 5YN/A
GM growth 3Y-1.5%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RVLV is still creating some value.
Compared to 1 year ago, RVLV has about the same amount of shares outstanding.
The number of shares outstanding for RVLV has been increased compared to 5 years ago.
There is no outstanding debt for RVLV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RVLV has an Altman-Z score of 6.67. This indicates that RVLV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.67, RVLV belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
There is no outstanding debt for RVLV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.67 |
ROIC/WACC0.95
WACC9.56%
2.3 Liquidity
A Current Ratio of 2.66 indicates that RVLV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.66, RVLV belongs to the top of the industry, outperforming 89.34% of the companies in the same industry.
RVLV has a Quick Ratio of 1.71. This is a normal value and indicates that RVLV is financially healthy and should not expect problems in meeting its short term obligations.
RVLV has a better Quick ratio (1.71) than 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 102.94% over the past year.
RVLV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.04% yearly.
Looking at the last year, RVLV shows a quite strong growth in Revenue. The Revenue has grown by 9.10% in the last year.
Measured over the past years, RVLV shows a quite strong growth in Revenue. The Revenue has been growing by 13.46% on average per year.
EPS 1Y (TTM)102.94%
EPS 3Y-20.04%
EPS 5YN/A
EPS Q2Q%6.67%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.22%
Revenue growth 5Y13.46%
Sales Q2Q%9.66%
3.2 Future
Based on estimates for the next years, RVLV will show a very strong growth in Earnings Per Share. The EPS will grow by 30.57% on average per year.
RVLV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.87% yearly.
EPS Next Y-36.27%
EPS Next 2Y-7.32%
EPS Next 3Y12.53%
EPS Next 5Y30.57%
Revenue Next Year6.57%
Revenue Next 2Y7.1%
Revenue Next 3Y7.88%
Revenue Next 5Y14.87%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.35 indicates a quite expensive valuation of RVLV.
RVLV's Price/Earnings ratio is in line with the industry average.
RVLV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.85, which means the current valuation is very expensive for RVLV.
RVLV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.58. RVLV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 35.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RVLV.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RVLV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.81 | ||
| EV/EBITDA | 19.04 |
4.3 Compensation for Growth
The decent profitability rating of RVLV may justify a higher PE ratio.
A more expensive valuation may be justified as RVLV's earnings are expected to grow with 12.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.32%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
No dividends for RVLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.94
-0.47 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners114.94%
Inst Owner Change-0.05%
Ins Owners0.63%
Ins Owner Change7.75%
Market Cap1.49B
Analysts77.27
Price Target22.71 (8.45%)
Short Float %18.85%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.03%
Min EPS beat(2)9.12%
Max EPS beat(2)70.94%
EPS beat(4)4
Avg EPS beat(4)47.36%
Min EPS beat(4)9.12%
Max EPS beat(4)70.94%
EPS beat(8)7
Avg EPS beat(8)46.35%
EPS beat(12)10
Avg EPS beat(12)38.33%
EPS beat(16)14
Avg EPS beat(16)45.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)2.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)2.45%
PT rev (3m)-30.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.91%
EPS NY rev (1m)-6.85%
EPS NY rev (3m)-42.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 35.85 | ||
| P/S | 1.29 | ||
| P/FCF | 61.81 | ||
| P/OCF | 44.63 | ||
| P/B | 3.29 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 19.04 |
EPS(TTM)0.69
EY3.3%
EPS(NY)0.58
Fwd EY2.79%
FCF(TTM)0.34
FCFY1.62%
OCF(TTM)0.47
OCFY2.24%
SpS16.22
BVpS6.37
TBVpS6.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 11.12% | ||
| ROCE | 12.13% | ||
| ROIC | 9.11% | ||
| ROICexc | 23.75% | ||
| ROICexgc | 24.34% | ||
| OM | 5.12% | ||
| PM (TTM) | 4.37% | ||
| GM | 52.43% | ||
| FCFM | 2.09% |
ROA(3y)7.4%
ROA(5y)12.31%
ROE(3y)11.36%
ROE(5y)18.79%
ROIC(3y)9.81%
ROIC(5y)15.41%
ROICexc(3y)23.19%
ROICexc(5y)N/A
ROICexgc(3y)23.7%
ROICexgc(5y)N/A
ROCE(3y)13.06%
ROCE(5y)20.52%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-26.1%
OM growth 5Y-9.84%
PM growth 3Y-26.83%
PM growth 5YN/A
GM growth 3Y-1.5%
GM growth 5Y-0.4%
F-Score5
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 179.02% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.95% | ||
| Profit Quality | 47.82% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 6.67 |
F-Score5
WACC9.56%
ROIC/WACC0.95
Cap/Depr(3y)119.51%
Cap/Depr(5y)91.07%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.46%
Profit Quality(3y)68.84%
Profit Quality(5y)78.51%
High Growth Momentum
Growth
EPS 1Y (TTM)102.94%
EPS 3Y-20.04%
EPS 5YN/A
EPS Q2Q%6.67%
EPS Next Y-36.27%
EPS Next 2Y-7.32%
EPS Next 3Y12.53%
EPS Next 5Y30.57%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y8.22%
Revenue growth 5Y13.46%
Sales Q2Q%9.66%
Revenue Next Year6.57%
Revenue Next 2Y7.1%
Revenue Next 3Y7.88%
Revenue Next 5Y14.87%
EBIT growth 1Y101.66%
EBIT growth 3Y-20.02%
EBIT growth 5Y2.29%
EBIT Next Year11.27%
EBIT Next 3Y29.68%
EBIT Next 5Y37.05%
FCF growth 1Y82.7%
FCF growth 3Y-33.09%
FCF growth 5Y-11.73%
OCF growth 1Y81.08%
OCF growth 3Y-24.62%
OCF growth 5Y-10.34%