REV GROUP INC (REVG) Stock Fundamental Analysis
NYSE:REVG - New York Stock Exchange, Inc. - US7495271071 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to REVG. REVG was compared to 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.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
REVG's Return On Assets of 7.89% is fine compared to the rest of the industry. REVG outperforms 69.53% of its industry peers.
The Return On Equity of REVG (27.08%) is better than 92.19% of its industry peers.
With an excellent Return On Invested Capital value of 15.90%, REVG belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
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
Looking at the Profit Margin, with a value of 4.16%, REVG is in line with its industry, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Profit Margin of REVG has grown nicely.
The Operating Margin of REVG (6.46%) is comparable to the rest of the industry.
REVG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.84%, REVG is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REVG is still creating some value.
Compared to 1 year ago, REVG has less shares outstanding
REVG has less shares outstanding than it did 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
REVG has an Altman-Z score of 4.44. This indicates that REVG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REVG (4.44) is better than 70.31% 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's Debt to FCF ratio of 0.82 is amongst the best of the industry. REVG outperforms 89.06% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that REVG is not too dependend on debt financing.
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 | 4.44 |
ROIC/WACC1.52
WACC10.43%
2.3 Liquidity
A Current Ratio of 1.66 indicates that REVG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.66, REVG is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
REVG has a Quick Ratio of 1.66. This is a bad value and indicates that REVG is not financially healthy enough and could expect problems in meeting its short term obligations.
REVG has a worse Quick ratio (0.53) than 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
The Revenue has decreased by -9.50% in the past year.
The Revenue has been decreasing by -0.20% on average over the past years.
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
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.79% yearly.
The Revenue is expected to grow by 4.11% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.48, 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.
When comparing the Price/Earnings ratio of REVG to the average of the S&P500 Index (26.53), we can say REVG is valued inline with the index average.
A Price/Forward Earnings ratio of 14.61 indicates a correct valuation of REVG.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than 71.88% of the companies in the same industry.
REVG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REVG is on the same level as its industry peers.
REVG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REVG is cheaper than 75.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.14 |
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.
REVG has a very decent profitability rating, which 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 0.54%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.54, REVG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
44.9
-1.04 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change1.47%
Ins Owners1.66%
Ins Owner Change-0.91%
Market Cap2.32B
Analysts51.11
Price Target35.7 (-20.49%)
Short Float %5.71%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)2.94%
PT rev (3m)0.36%
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%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 14.61 | ||
| P/S | 1 | ||
| P/FCF | 14.56 | ||
| P/OCF | 12.42 | ||
| P/B | 6.49 | ||
| P/tB | 17.25 | ||
| EV/EBITDA | 14.14 |
EPS(TTM)2.09
EY4.65%
EPS(NY)3.07
Fwd EY6.84%
FCF(TTM)3.08
FCFY6.87%
OCF(TTM)3.62
OCFY8.05%
SpS45.11
BVpS6.92
TBVpS2.6
PEG (NY)0.45
PEG (5Y)0.73
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 | 4.44 |
F-Score6
WACC10.43%
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 Y47.93%
EPS Next 2Y37.31%
EPS Next 3Y33.79%
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 Year-0.04%
Revenue Next 2Y3.18%
Revenue Next 3Y4.11%
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%