Evaluating REV GROUP INC (NYSE:REVG) using Peter Lynch’s legendary strategy

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if REV GROUP INC (NYSE:REVG) fits his winning formula.

Is REV GROUP INC (NYSE:REVG) the type of stock Peter Lynch would love?

• REVG has achieved an impressive Return on Equity (ROE) of 21.71%, showcasing its ability to generate favorable returns for shareholders.
• With a Debt-to-Equity ratio at 0.33, REVG showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• REVG has experienced 29.36 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• A PEG ratio of 0.58 positions REVG as a well-valued growth stock in today’s market.
• With a Current Ratio of 1.93, REVG appears well-positioned to meet its near-term financial obligations.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, REVG scores 6 out of 10 in our fundamental rating. REVG was compared to 126 industry peers in the Machinery industry. REVG has an excellent financial health rating, but there are some minor concerns on its profitability. REVG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make REVG suitable for value investing!

Our latest full fundamental report of REVG contains the most current fundamental analsysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.