REV GROUP INC (REVG)
US7495271071 - Common Stock
Overall REVG gets a fundamental rating of 5 out of 10. We evaluated REVG against 132 industry peers in the Machinery industry. REVG has an average financial health and profitability rating. REVG has a correct valuation and a medium growth rate.
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.
In multiple years REVG reported negative net income over the last 5 years.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
REVG's Return On Assets of 16.99% is amongst the best of the industry. REVG outperforms 96.12% of its industry peers.
REVG has a better Return On Equity (48.68%) than 96.90% of its industry peers.
The Return On Invested Capital of REVG (11.99%) is better than 76.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is below the industry average of 10.72%.
The last Return On Invested Capital (11.99%) for REVG is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.99% | ||
| ROE | 48.68% | ||
| ROIC | 11.99% |
ROA(3y)2.64%
ROA(5y)0.94%
ROE(3y)7%
ROE(5y)2.42%
ROIC(3y)6.96%
ROIC(5y)4.79%
1.3 Margins
REVG has a Profit Margin of 9.15%. This is in the better half of the industry: REVG outperforms 68.22% of its industry peers.
REVG's Profit Margin has improved in the last couple of years.
REVG's Operating Margin of 4.04% is on the low side compared to the rest of the industry. REVG is outperformed by 65.12% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
REVG's Gross Margin of 12.16% is on the low side compared to the rest of the industry. REVG is outperformed by 86.05% of its industry peers.
In the last couple of years the Gross Margin of REVG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.04% | ||
| PM (TTM) | 9.15% | ||
| GM | 12.16% |
OM growth 3Y137.64%
OM growth 5Y2.53%
PM growth 3YN/A
PM growth 5Y25.76%
GM growth 3Y6.16%
GM growth 5Y0.52%
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.
Compared to 1 year ago, REVG has more shares outstanding
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
Compared to 1 year ago, REVG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.16 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG has a Altman-Z score (3.16) which is in line with its industry peers.
There is no outstanding debt for REVG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.22
WACC9.79%
2.3 Liquidity
REVG has a Current Ratio of 1.35. This is a normal value and indicates that REVG is financially healthy and should not expect problems in meeting its short term obligations.
REVG has a Current ratio of 1.35. This is in the lower half of the industry: REVG underperforms 79.84% of its industry peers.
REVG has a Quick Ratio of 1.35. 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 (0.46) than 89.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.72%, which is quite impressive.
Measured over the past 5 years, REVG shows a small growth in Earnings Per Share. The EPS has been growing by 5.15% on average per year.
REVG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
Measured over the past years, REVG shows a small growth in Revenue. The Revenue has been growing by 2.07% on average per year.
EPS 1Y (TTM)82.72%
EPS 3Y103.58%
EPS 5Y5.15%
EPS growth Q2Q108.33%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y5.02%
Revenue growth 5Y2.07%
Revenue growth Q2Q0.43%
3.2 Future
REVG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.02% yearly.
REVG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.39% yearly.
EPS Next Y10.71%
EPS Next 2Y24.45%
EPS Next 3Y16.02%
EPS Next 5YN/A
Revenue Next Year-4.47%
Revenue Next 2Y-0.02%
Revenue Next 3Y-0.39%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.71, which indicates a correct valuation of REVG.
Based on the Price/Earnings ratio, REVG is valued a bit cheaper than 73.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. REVG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of REVG can be described as reasonable.
86.05% of the companies in the same industry are more expensive than REVG, based on the Price/Forward Earnings ratio.
REVG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REVG is cheaper than 80.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REVG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.85 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)3.05
EPS Next 2Y24.45%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of REVG has a limited annual growth rate of 0.18%.
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)0.18%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
5.01% 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 earnings are growing more, so the dividend growth is sustainable.
DP5.01%
EPS Next 2Y24.45%
EPS Next 3Y16.02%
REV GROUP INC
NYSE:REVG (5/3/2024, 7:15:24 PM)
After market: 23.25 0 (0%)23.25
+0.17 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 11.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.47
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.99% | ||
| ROE | 48.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.04% | ||
| PM (TTM) | 9.15% | ||
| GM | 12.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)82.72%
EPS 3Y103.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.03%
Revenue growth 3Y5.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y