REV GROUP INC (NYSE:REVG) stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screener has singled out REV GROUP INC (NYSE:REVG) as a stellar value proposition. REVG not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Exploring REVG's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of REVG, the assigned 7 reflects its valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 60.94% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (28.15), we can say REVG is valued slightly cheaper.
• The Price/Forward Earnings ratio is 10.09, which indicates a very decent valuation of REVG.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of REVG indicates a rather cheap valuation: REVG is cheaper than 90.63% of the companies listed in the same industry.
• REVG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.09.
• 61.72% of the companies in the same industry are more expensive than REVG, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, REVG is valued a bit cheaper than 61.72% of the companies in the same industry.
• REVG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of REVG may justify a higher PE ratio.
• REVG's earnings are expected to grow with 35.36% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. REVG has earned a 6 out of 10:

• The Return On Assets of REVG (7.50%) is better than 69.53% of its industry peers.
• The Return On Equity of REVG (21.71%) is better than 83.59% of its industry peers.
• REVG's Return On Invested Capital of 12.12% is fine compared to the rest of the industry. REVG outperforms 77.34% of its industry peers.
• The 3 year average ROIC (7.94%) for REVG is below the current ROIC(12.12%), indicating increased profibility in the last year.
• In the last couple of years the Profit Margin of REVG has grown nicely.
• In the last couple of years the Operating Margin of REVG has grown nicely.
• In the last couple of years the Gross Margin of REVG has grown nicely.

Health Insights: REVG

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. REVG has achieved a 7 out of 10:

• REVG has an Altman-Z score of 3.97. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
• REVG's Altman-Z score of 3.97 is fine compared to the rest of the industry. REVG outperforms 67.97% of its industry peers.
• The Debt to FCF ratio of REVG is 1.59, which is an excellent value as it means it would take REVG, only 1.59 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of REVG (1.59) is better than 80.47% of its industry peers.
• A Debt/Equity ratio of 0.33 indicates that REVG is not too dependend on debt financing.
• REVG has a Debt to Equity ratio of 0.33. This is in the better half of the industry: REVG outperforms 62.50% of its industry peers.

Assessing Growth Metrics for REVG

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of REVG, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 20.27% over the past year.
• REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
• The Earnings Per Share is expected to grow by 35.36% on average over the next years. This is a very strong growth
• 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 accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.