REVOLVE GROUP INC (RVLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RVLV - US76156B1070 - Common Stock
29.16 USD
-0.83 (-2.77%)
We assign a fundamental rating of 6 out of 10 to RVLV. RVLV was compared to 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making RVLV a very profitable company, without any liquidiy or solvency issues. RVLV is valued quite expensive, but it does show an excellent growth. With these ratings, RVLV could be worth investigating further for growth and quality investing!.
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.
- RVLV had positive earnings in each of the past 5 years.
- RVLV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.39%, RVLV belongs to the top of the industry, outperforming 80.99% of the companies in the same industry.
- RVLV's Return On Equity of 11.32% is fine compared to the rest of the industry. RVLV outperforms 66.94% of its industry peers.
- With a decent Return On Invested Capital value of 10.09%, RVLV is doing good in the industry, outperforming 74.38% of the companies in the same industry.
- RVLV had an Average Return On Invested Capital over the past 3 years of 9.81%. This is below the industry average of 12.37%.
- The last Return On Invested Capital (10.09%) for RVLV is above the 3 year average (9.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 11.32% | ||
| ROIC | 10.09% |
ROA(3y)7.4%
ROA(5y)12.31%
ROE(3y)11.36%
ROE(5y)18.79%
ROIC(3y)9.81%
ROIC(5y)15.41%
1.3 Margins
- The Profit Margin of RVLV (4.64%) is better than 73.55% of its industry peers.
- In the last couple of years the Profit Margin of RVLV has declined.
- RVLV's Operating Margin of 5.79% is fine compared to the rest of the industry. RVLV outperforms 70.25% of its industry peers.
- RVLV's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 53.32%, RVLV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- 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 | 5.79% | ||
| PM (TTM) | 4.64% | ||
| GM | 53.32% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RVLV is creating some value.
- The number of shares outstanding for RVLV remains at a similar level compared to 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
- RVLV has an Altman-Z score of 8.11. This indicates that RVLV is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RVLV (8.11) is better than 96.69% 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 | 8.11 |
ROIC/WACC1.03
WACC9.77%
2.3 Liquidity
- A Current Ratio of 2.70 indicates that RVLV has no problem at all paying its short term obligations.
- RVLV has a Current ratio of 2.70. This is amongst the best in the industry. RVLV outperforms 87.60% of its industry peers.
- A Quick Ratio of 1.69 indicates that RVLV should not have too much problems paying its short term obligations.
- RVLV has a better Quick ratio (1.69) than 86.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| 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 35.71%, which is quite impressive.
- Measured over the past years, RVLV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.04% on average per year.
- RVLV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.24%.
- 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)35.71%
EPS 3Y-20.04%
EPS 5YN/A
EPS Q2Q%93.33%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y8.22%
Revenue growth 5Y13.46%
Sales Q2Q%4.41%
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.
- The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y13.88%
EPS Next 2Y12.96%
EPS Next 3Y16.2%
EPS Next 5Y30.57%
Revenue Next Year7.79%
Revenue Next 2Y7.1%
Revenue Next 3Y7.83%
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.
- 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 38.37 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.
- The average S&P500 Price/Earnings ratio is at 27.30. RVLV is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 33.61, which means the current valuation is very expensive for RVLV.
- The rest of the industry has a similar Price/Forward Earnings ratio as RVLV.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. RVLV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.37 | ||
| Fwd PE | 33.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RVLV is valued a bit more expensive than the industry average as 60.33% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as RVLV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.93 | ||
| EV/EBITDA | 24.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RVLV does not grow enough to justify the current Price/Earnings ratio.
- RVLV has a very decent profitability rating, which may justify a higher PE ratio.
- RVLV's earnings are expected to grow with 16.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.76
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
- No dividends for RVLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
REVOLVE GROUP INC / RVLV FAQ
What is the ChartMill fundamental rating of REVOLVE GROUP INC (RVLV) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RVLV.
What is the valuation status for RVLV stock?
ChartMill assigns a valuation rating of 2 / 10 to REVOLVE GROUP INC (RVLV). This can be considered as Overvalued.
How profitable is REVOLVE GROUP INC (RVLV) stock?
REVOLVE GROUP INC (RVLV) has a profitability rating of 7 / 10.
How financially healthy is REVOLVE GROUP INC?
The financial health rating of REVOLVE GROUP INC (RVLV) is 8 / 10.