REVOLVE GROUP INC (RVLV) Stock Fundamental Analysis
NYSE:RVLV - New York Stock Exchange, Inc. - US76156B1070 - Common Stock - Currency: USD
Taking everything into account, RVLV scores 6 out of 10 in our fundamental rating. RVLV was compared to 121 industry peers in the Specialty Retail industry. While RVLV has a great health rating, its profitability is only average at the moment. RVLV is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RVLV had positive earnings in the past year.
RVLV had a positive operating cash flow in the past year.
Each year in the past 5 years RVLV has been profitable.
Each year in the past 5 years RVLV had a positive operating cash flow.
1.2 Ratios
RVLV's Return On Assets of 7.45% is fine compared to the rest of the industry. RVLV outperforms 77.12% of its industry peers.
With a decent Return On Equity value of 11.31%, RVLV is doing good in the industry, outperforming 66.95% of the companies in the same industry.
The Return On Invested Capital of RVLV (8.62%) is better than 71.19% 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 14.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 11.31% | ||
| ROIC | 8.62% |
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 has a better Profit Margin (4.39%) than 73.73% of its industry peers.
In the last couple of years the Profit Margin of RVLV has declined.
Looking at the Operating Margin, with a value of 4.77%, RVLV is in the better half of the industry, outperforming 65.25% of the companies in the same industry.
RVLV's Operating Margin has declined in the last couple of years.
RVLV has a Gross Margin of 52.51%. This is amongst the best in the industry. RVLV outperforms 80.51% 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 | 4.77% | ||
| PM (TTM) | 4.39% | ||
| GM | 52.51% |
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 below the Cost of Capital (WACC), so RVLV is destroying value.
RVLV has about the same amout of shares outstanding than it did 1 year ago.
RVLV has more shares outstanding than it did 5 years ago.
RVLV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 8.22 indicates that RVLV is not in any danger for bankruptcy at the moment.
The Altman-Z score of RVLV (8.22) is better than 99.15% of its industry peers.
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 | 8.22 |
ROIC/WACC0.86
WACC9.99%
2.3 Liquidity
RVLV has a Current Ratio of 2.86. This indicates that RVLV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.86, RVLV belongs to the best of the industry, outperforming 92.37% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that RVLV should not have too much problems paying its short term obligations.
RVLV's Quick ratio of 1.69 is amongst the best of the industry. RVLV outperforms 88.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
RVLV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 78.95%, which is quite impressive.
RVLV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.04% yearly.
The Revenue has been growing slightly by 5.73% in the past year.
RVLV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.46% yearly.
EPS 1Y (TTM)78.95%
EPS 3Y-20.04%
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y8.22%
Revenue growth 5Y13.46%
Sales Q2Q%13.95%
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 Y16.25%
EPS Next 2Y22.09%
EPS Next 3Y33.04%
EPS Next 5Y30.57%
Revenue Next Year8.84%
Revenue Next 2Y9.97%
Revenue Next 3Y13.14%
Revenue Next 5Y14.87%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.06 indicates a quite expensive valuation of RVLV.
Compared to the rest of the industry, the Price/Earnings ratio of RVLV is on the same level as its industry peers.
RVLV is valuated rather expensively when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.60, 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 22.66. RVLV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.06 | ||
| Fwd PE | 33.6 |
4.2 Price Multiples
RVLV's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RVLV is more expensive than 63.56% of the companies in the same industry.
RVLV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.38 | ||
| EV/EBITDA | 27.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RVLV may justify a higher PE ratio.
RVLV's earnings are expected to grow with 33.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)N/A
EPS Next 2Y22.09%
EPS Next 3Y33.04%
5. Dividend
5.1 Amount
RVLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.56
+0.31 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.94%
Inst Owner Change-1.58%
Ins Owners0.65%
Ins Owner Change0%
Market Cap1.88B
Analysts76.19
Price Target32.23 (21.35%)
Short Float %16.62%
Short Ratio6.14
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)59.41%
Min EPS beat(2)47.89%
Max EPS beat(2)70.94%
EPS beat(4)4
Avg EPS beat(4)66.72%
Min EPS beat(4)47.89%
Max EPS beat(4)86.58%
EPS beat(8)7
Avg EPS beat(8)48.11%
EPS beat(12)10
Avg EPS beat(12)38.41%
EPS beat(16)14
Avg EPS beat(16)52.41%
Revenue beat(2)2
Avg Revenue beat(2)2%
Min Revenue beat(2)1.58%
Max Revenue beat(2)2.43%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)2.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)10
Avg Revenue beat(16)3.13%
PT rev (1m)0.42%
PT rev (3m)6.09%
EPS NQ rev (1m)1.3%
EPS NQ rev (3m)2.63%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.06 | ||
| Fwd PE | 33.6 | ||
| P/S | 1.66 | ||
| P/FCF | 104.38 | ||
| P/OCF | 70.41 | ||
| P/B | 4.29 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 27.49 |
EPS(TTM)0.68
EY2.56%
EPS(NY)0.79
Fwd EY2.98%
FCF(TTM)0.25
FCFY0.96%
OCF(TTM)0.38
OCFY1.42%
SpS15.97
BVpS6.19
TBVpS6.13
PEG (NY)2.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 11.31% | ||
| ROCE | 11.47% | ||
| ROIC | 8.62% | ||
| ROICexc | 19.01% | ||
| ROICexgc | 19.4% | ||
| OM | 4.77% | ||
| PM (TTM) | 4.39% | ||
| GM | 52.51% | ||
| FCFM | 1.59% |
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-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 168.19% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.22% | ||
| Profit Quality | 36.33% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 8.22 |
F-Score7
WACC9.99%
ROIC/WACC0.86
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)78.95%
EPS 3Y-20.04%
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y16.25%
EPS Next 2Y22.09%
EPS Next 3Y33.04%
EPS Next 5Y30.57%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y8.22%
Revenue growth 5Y13.46%
Sales Q2Q%13.95%
Revenue Next Year8.84%
Revenue Next 2Y9.97%
Revenue Next 3Y13.14%
Revenue Next 5Y14.87%
EBIT growth 1Y65.3%
EBIT growth 3Y-20.02%
EBIT growth 5Y2.29%
EBIT Next Year68.33%
EBIT Next 3Y50.2%
EBIT Next 5Y37.01%
FCF growth 1Y-54%
FCF growth 3Y-33.09%
FCF growth 5Y-11.73%
OCF growth 1Y-38.42%
OCF growth 3Y-24.62%
OCF growth 5Y-10.34%