REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
REVG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. REVG has an average financial health and profitability rating. REVG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
REVG had positive earnings in the past year.
In the past year REVG had a positive cash flow from operations.
Of the past 5 years REVG 4 years were profitable.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.50%, REVG is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
REVG's Return On Equity of 21.71% is amongst the best of the industry. REVG outperforms 85.94% of its industry peers.
REVG has a better Return On Invested Capital (12.12%) than 77.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 10.31%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(12.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 21.71% | ||
| ROIC | 12.12% |
ROA(3y)8.53%
ROA(5y)5.37%
ROE(3y)23.88%
ROE(5y)14.75%
ROIC(3y)7.94%
ROIC(5y)6.54%
1.3 Margins
REVG has a Profit Margin (4.01%) which is in line with its industry peers.
REVG's Profit Margin has improved in the last couple of years.
REVG's Operating Margin of 5.50% is on the low side compared to the rest of the industry. REVG is outperformed by 60.94% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.12%, REVG is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of REVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 4.01% | ||
| GM | 13.12% |
OM growth 3Y8.27%
OM growth 5Y29.83%
PM growth 3Y79.7%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5Y3.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REVG is creating some value.
REVG has less shares outstanding than it did 1 year ago.
REVG has less shares outstanding than it did 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.21 indicates that REVG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.21, REVG is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
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.
REVG has a Debt to FCF ratio of 1.59. This is in the better half of the industry: REVG outperforms 79.69% of its industry peers.
REVG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
REVG has a better Debt to Equity ratio (0.33) than 61.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.1
WACC11.05%
2.3 Liquidity
A Current Ratio of 1.93 indicates that REVG should not have too much problems paying its short term obligations.
REVG's Current ratio of 1.93 is in line compared to the rest of the industry. REVG outperforms 46.09% of its industry peers.
A Quick Ratio of 0.55 indicates that REVG may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, REVG is not doing good in the industry: 89.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.27% over the past year.
Measured over the past years, REVG shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.36% on average per year.
REVG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.16%.
REVG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
EPS 1Y (TTM)20.27%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%60%
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-10.39%
3.2 Future
Based on estimates for the next years, REVG will show a very strong growth in Earnings Per Share. The EPS will grow by 33.79% on average per year.
REVG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y47.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
EPS Next 5YN/A
Revenue Next Year-0.04%
Revenue Next 2Y3.18%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.50, REVG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of REVG is on the same level as its industry peers.
REVG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 12.45, which indicates a correct valuation of REVG.
Based on the Price/Forward Earnings ratio, REVG is valued cheaper than 80.47% of the companies in the same industry.
REVG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REVG.
REVG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.47 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
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 33.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)0.73
EPS Next 2Y37.31%
EPS Next 3Y33.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.83, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.63, REVG pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of REVG grows each year by 76.61%, which is quite nice.
REVG has been paying a dividend for over 5 years, so it has already some track record.
REVG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)76.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
207.09% of the earnings are spent on dividend by REVG. This is not a sustainable payout ratio.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP207.09%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
NYSE:REVG (5/21/2025, 11:09:01 AM)
38.27
-0.22 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change1.53%
Ins Owners1.66%
Ins Owner Change0.5%
Market Cap1.98B
Analysts51.11
Price Target34.68 (-9.38%)
Short Float %7.09%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP207.09%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.01%
Min EPS beat(2)2.04%
Max EPS beat(2)47.98%
EPS beat(4)4
Avg EPS beat(4)26.79%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)44.93%
EPS beat(12)11
Avg EPS beat(12)233.51%
EPS beat(16)14
Avg EPS beat(16)181.81%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)4.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)2.07%
Revenue beat(12)7
Avg Revenue beat(12)2.3%
Revenue beat(16)7
Avg Revenue beat(16)0.63%
PT rev (1m)-2.51%
PT rev (3m)-2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.85 | ||
| P/FCF | 22.47 | ||
| P/OCF | 17.98 | ||
| P/B | 4.61 | ||
| P/tB | 10.08 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)1.78
EY4.65%
EPS(NY)3.07
Fwd EY8.03%
FCF(TTM)1.7
FCFY4.45%
OCF(TTM)2.13
OCFY5.56%
SpS44.88
BVpS8.3
TBVpS3.8
PEG (NY)0.45
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 21.71% | ||
| ROCE | 15.79% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.61% | ||
| ROICexgc | 18.01% | ||
| OM | 5.5% | ||
| PM (TTM) | 4.01% | ||
| GM | 13.12% | ||
| FCFM | 3.79% |
ROA(3y)8.53%
ROA(5y)5.37%
ROE(3y)23.88%
ROE(5y)14.75%
ROIC(3y)7.94%
ROIC(5y)6.54%
ROICexc(3y)8.17%
ROICexc(5y)6.72%
ROICexgc(3y)12.19%
ROICexgc(5y)10.14%
ROCE(3y)10.34%
ROCE(5y)8.53%
ROICexcg growth 3Y9.61%
ROICexcg growth 5Y34.61%
ROICexc growth 3Y11.61%
ROICexc growth 5Y35.76%
OM growth 3Y8.27%
OM growth 5Y29.83%
PM growth 3Y79.7%
PM growth 5YN/A
GM growth 3Y0.72%
GM growth 5Y3.58%
F-Score6
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 88.35% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 5.72 | ||
| Cash Conversion | 72.18% | ||
| Profit Quality | 94.52% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 4.21 |
F-Score6
WACC11.05%
ROIC/WACC1.1
Cap/Depr(3y)103.54%
Cap/Depr(5y)85.92%
Cap/Sales(3y)1.16%
Cap/Sales(5y)1.05%
Profit Quality(3y)218.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.27%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%60%
EPS Next Y47.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%-10.39%
Revenue Next Year-0.04%
Revenue Next 2Y3.18%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
EBIT growth 1Y19.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year205.96%
EBIT Next 3Y64.07%
EBIT Next 5YN/A
FCF growth 1Y36.86%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y24.43%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%