REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
Overall REVG gets a fundamental rating of 6 out of 10. We evaluated REVG against 128 industry peers in the Machinery industry. While REVG has a great profitability rating, there are some minor concerns on its financial health. REVG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year REVG was profitable.
REVG had a positive operating cash flow in the past year.
Of the past 5 years REVG 4 years were profitable.
REVG 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 7.89%, REVG is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
REVG's Return On Equity of 27.08% is amongst the best of the industry. REVG outperforms 92.97% of its industry peers.
REVG has a better Return On Invested Capital (15.90%) than 88.28% of its industry peers.
REVG had an Average Return On Invested Capital over the past 3 years of 7.94%. This is below the industry average of 10.69%.
The 3 year average ROIC (7.94%) for REVG is below the current ROIC(15.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 27.08% | ||
| ROIC | 15.9% |
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 (4.16%) which is in line with its industry peers.
In the last couple of years the Profit Margin of REVG has grown nicely.
REVG has a Operating Margin (6.46%) which is in line with its industry peers.
REVG's Operating Margin has improved in the last couple of years.
REVG's Gross Margin of 13.84% is on the low side compared to the rest of the industry. REVG is outperformed by 84.38% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.46% | ||
| PM (TTM) | 4.16% | ||
| GM | 13.84% |
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.
The number of shares outstanding for REVG has been reduced compared to 1 year ago.
Compared to 5 years ago, REVG has less shares outstanding
The debt/assets ratio for REVG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.43 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG's Altman-Z score of 4.43 is fine compared to the rest of the industry. REVG outperforms 71.88% of its industry peers.
The Debt to FCF ratio of REVG is 0.82, which is an excellent value as it means it would take REVG, only 0.82 years of fcf income to pay off all of its debts.
REVG has a Debt to FCF ratio of 0.82. This is amongst the best in the industry. REVG outperforms 89.06% of its industry peers.
REVG has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, REVG perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.43 |
ROIC/WACC1.52
WACC10.44%
2.3 Liquidity
A Current Ratio of 1.66 indicates that REVG should not have too much problems paying its short term obligations.
REVG has a Current ratio of 1.66. This is in the lower half of the industry: REVG underperforms 67.97% of its industry peers.
A Quick Ratio of 0.53 indicates that REVG may have some problems paying its short term obligations.
The Quick ratio of REVG (0.53) is worse than 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% 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.
The Revenue has decreased by -9.50% in the past year.
REVG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
EPS 1Y (TTM)37.5%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%79.49%
Revenue 1Y (TTM)-9.5%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%1.98%
3.2 Future
The Earnings Per Share is expected to grow by 37.64% on average over the next years. This is a very strong growth
Based on estimates for the next years, REVG will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y52.69%
EPS Next 2Y45.49%
EPS Next 3Y37.64%
EPS Next 5YN/A
Revenue Next Year1.32%
Revenue Next 2Y4.02%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.20 indicates a rather expensive valuation of REVG.
REVG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, REVG is valued at the same level.
Based on the Price/Forward Earnings ratio of 14.05, the valuation of REVG can be described as correct.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
REVG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is in line with the industry average.
REVG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REVG is cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.85 | ||
| EV/EBITDA | 14.09 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as REVG's earnings are expected to grow with 37.64% in the coming years.
PEG (NY)0.44
PEG (5Y)0.79
EPS Next 2Y45.49%
EPS Next 3Y37.64%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.49, REVG pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of REVG is nicely growing with an annual growth rate of 76.61%!
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
13.93% of the earnings are spent on dividend by REVG. This is a low number and sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.93%
EPS Next 2Y45.49%
EPS Next 3Y37.64%
48.49
-0.73 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners109.84%
Inst Owner Change0%
Ins Owners1.77%
Ins Owner Change0%
Market Cap2.37B
Analysts78
Price Target46.16 (-4.81%)
Short Float %3.89%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP13.93%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.24%
Min EPS beat(2)20.5%
Max EPS beat(2)47.98%
EPS beat(4)4
Avg EPS beat(4)20.48%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)36.59%
EPS beat(12)12
Avg EPS beat(12)237.54%
EPS beat(16)14
Avg EPS beat(16)177.42%
Revenue beat(2)2
Avg Revenue beat(2)3.33%
Min Revenue beat(2)2.2%
Max Revenue beat(2)4.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-8.19%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)2.91%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)29.29%
PT rev (3m)29.75%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)3.21%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 14.05 | ||
| P/S | 1.01 | ||
| P/FCF | 14.85 | ||
| P/OCF | 12.66 | ||
| P/B | 6.61 | ||
| P/tB | 17.59 | ||
| EV/EBITDA | 14.09 |
EPS(TTM)2.09
EY4.31%
EPS(NY)3.45
Fwd EY7.12%
FCF(TTM)3.27
FCFY6.74%
OCF(TTM)3.83
OCFY7.9%
SpS47.78
BVpS7.33
TBVpS2.76
PEG (NY)0.44
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 27.08% | ||
| ROCE | 20.71% | ||
| ROIC | 15.9% | ||
| ROICexc | 16.55% | ||
| ROICexgc | 24.33% | ||
| OM | 6.46% | ||
| PM (TTM) | 4.16% | ||
| GM | 13.84% | ||
| FCFM | 6.84% |
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 Turnover1.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 112.25% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 7.07 | ||
| Cash Conversion | 106.74% | ||
| Profit Quality | 164.5% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.43 |
F-Score6
WACC10.44%
ROIC/WACC1.52
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)37.5%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%79.49%
EPS Next Y52.69%
EPS Next 2Y45.49%
EPS Next 3Y37.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.5%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%1.98%
Revenue Next Year1.32%
Revenue Next 2Y4.02%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
EBIT growth 1Y44.39%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year202.73%
EBIT Next 3Y62.26%
EBIT Next 5YN/A
FCF growth 1Y250.33%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y158.15%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%