REV GROUP INC (REVG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REVG - US7495271071 - Common Stock
67.06 USD
+0.91 (+1.38%)
67 USD
-0.06 (-0.09%)
Overall REVG gets a fundamental rating of 6 out of 10. We evaluated REVG against 132 industry peers in the Machinery industry. REVG gets an excellent profitability rating and is at the same time showing great financial health properties. REVG is not valued too expensively and it also shows a decent growth rate. With these ratings, REVG could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year REVG was profitable.
In the past year REVG had a positive cash flow from operations.
REVG had positive earnings in each of the past 5 years.
REVG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REVG has a Return On Assets of 7.93%. This is in the better half of the industry: REVG outperforms 75.00% of its industry peers.
REVG's Return On Equity of 22.87% is amongst the best of the industry. REVG outperforms 90.91% of its industry peers.
REVG has a Return On Invested Capital of 20.85%. This is amongst the best in the industry. REVG outperforms 96.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REVG is above the industry average of 10.25%.
The last Return On Invested Capital (20.85%) for REVG is above the 3 year average (13.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 22.87% | ||
| ROIC | 20.85% |
ROA(3y)10.79%
ROA(5y)7.42%
ROE(3y)30.39%
ROE(5y)20.61%
ROIC(3y)13.57%
ROIC(5y)10.75%
1.3 Margins
With a Profit Margin value of 3.86%, REVG perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
REVG's Profit Margin has improved in the last couple of years.
REVG has a Operating Margin (7.40%) which is in line with its industry peers.
In the last couple of years the Operating Margin of REVG has grown nicely.
REVG has a Gross Margin of 15.01%. This is amonst the worse of the industry: REVG underperforms 81.82% of its industry peers.
REVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.4% | ||
| PM (TTM) | 3.86% | ||
| GM | 15.01% |
OM growth 3Y55.12%
OM growth 5Y96.84%
PM growth 3Y80.98%
PM growth 5YN/A
GM growth 3Y12.24%
GM growth 5Y8.43%
2. Health
2.1 Basic Checks
REVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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
An Altman-Z score of 5.56 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG has a better Altman-Z score (5.56) than 79.55% of its industry peers.
REVG has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
REVG has a better Debt to FCF ratio (0.21) than 91.67% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that REVG is not too dependend on debt financing.
The Debt to Equity ratio of REVG (0.10) is better than 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 5.56 |
ROIC/WACC2.08
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.51 indicates that REVG should not have too much problems paying its short term obligations.
The Current ratio of REVG (1.51) is worse than 72.73% of its industry peers.
A Quick Ratio of 0.49 indicates that REVG may have some problems paying its short term obligations.
REVG has a Quick ratio of 0.49. This is amonst the worse of the industry: REVG underperforms 90.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
REVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.87%, which is quite impressive.
Measured over the past years, REVG shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.23% on average per year.
REVG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.50%.
The Revenue has been growing slightly by 1.58% on average over the past years.
EPS 1Y (TTM)66.87%
EPS 3Y49.14%
EPS 5Y76.23%
EPS Q2Q%62.75%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y1.85%
Revenue growth 5Y1.58%
Sales Q2Q%11.12%
3.2 Future
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.64% yearly.
REVG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y37.35%
EPS Next 2Y31.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.31%
Revenue Next 2Y8.1%
Revenue Next 3Y5.89%
Revenue Next 5Y6.02%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 24.65 indicates a rather expensive valuation of REVG.
The rest of the industry has a similar Price/Earnings ratio as REVG.
REVG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 17.95, REVG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than the industry average as 70.45% of the companies are valued more expensively.
REVG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 78.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.23 | ||
| EV/EBITDA | 15.75 |
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.
REVG's earnings are expected to grow with 31.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)0.32
EPS Next 2Y31.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, REVG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.80, REVG has a dividend in line with its industry peers.
With a Dividend Yield of 0.36, REVG pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
5.2 History
On average, the dividend of REVG grows each year by 11.06%, 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)11.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
13.55% 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.
DP13.55%
EPS Next 2Y31.64%
EPS Next 3YN/A
67.06
+0.91 (+1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.34%
Inst Owner Change-0.29%
Ins Owners1.76%
Ins Owner Change0.65%
Market Cap3.27B
Revenue(TTM)2.46B
Net Income(TTM)95.20M
Analysts76
Price Target67.32 (0.39%)
Short Float %2.64%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Yearly Dividend0.26
Dividend Growth(5Y)11.06%
DP13.55%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.26%
Min EPS beat(2)4.22%
Max EPS beat(2)22.29%
EPS beat(4)4
Avg EPS beat(4)23.75%
Min EPS beat(4)4.22%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)27.2%
EPS beat(12)12
Avg EPS beat(12)238.28%
EPS beat(16)15
Avg EPS beat(16)179.09%
Revenue beat(2)2
Avg Revenue beat(2)0.47%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.71%
Revenue beat(4)4
Avg Revenue beat(4)1.9%
Min Revenue beat(4)0.22%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.47%
Revenue beat(12)9
Avg Revenue beat(12)2.89%
Revenue beat(16)10
Avg Revenue beat(16)1.88%
PT rev (1m)8.2%
PT rev (3m)0.38%
EPS NQ rev (1m)2.75%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)4.06%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 17.95 | ||
| P/S | 1.33 | ||
| P/FCF | 17.23 | ||
| P/OCF | 13.58 | ||
| P/B | 7.86 | ||
| P/tB | 16.98 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)2.72
EY4.06%
EPS(NY)3.74
Fwd EY5.57%
FCF(TTM)3.89
FCFY5.8%
OCF(TTM)4.94
OCFY7.37%
SpS50.47
BVpS8.53
TBVpS3.95
PEG (NY)0.66
PEG (5Y)0.32
Graham Number22.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 22.87% | ||
| ROCE | 26.61% | ||
| ROIC | 20.85% | ||
| ROICexc | 21.96% | ||
| ROICexgc | 33.47% | ||
| OM | 7.4% | ||
| PM (TTM) | 3.86% | ||
| GM | 15.01% | ||
| FCFM | 7.71% |
ROA(3y)10.79%
ROA(5y)7.42%
ROE(3y)30.39%
ROE(5y)20.61%
ROIC(3y)13.57%
ROIC(5y)10.75%
ROICexc(3y)14.15%
ROICexc(5y)11.14%
ROICexgc(3y)21.28%
ROICexgc(5y)16.89%
ROCE(3y)17.32%
ROCE(5y)13.72%
ROICexgc growth 3Y68.82%
ROICexgc growth 5Y111.16%
ROICexc growth 3Y69.09%
ROICexc growth 5Y111.16%
OM growth 3Y55.12%
OM growth 5Y96.84%
PM growth 3Y80.98%
PM growth 5YN/A
GM growth 3Y12.24%
GM growth 5Y8.43%
F-Score7
Asset Turnover2.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 196.54% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 10.24 | ||
| Cash Conversion | 115.8% | ||
| Profit Quality | 199.58% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 5.56 |
F-Score7
WACC10.01%
ROIC/WACC2.08
Cap/Depr(3y)143.46%
Cap/Depr(5y)116.87%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.32%
Profit Quality(3y)138.81%
Profit Quality(5y)231.36%
High Growth Momentum
Growth
EPS 1Y (TTM)66.87%
EPS 3Y49.14%
EPS 5Y76.23%
EPS Q2Q%62.75%
EPS Next Y37.35%
EPS Next 2Y31.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y1.85%
Revenue growth 5Y1.58%
Sales Q2Q%11.12%
Revenue Next Year8.31%
Revenue Next 2Y8.1%
Revenue Next 3Y5.89%
Revenue Next 5Y6.02%
EBIT growth 1Y71.24%
EBIT growth 3Y57.99%
EBIT growth 5Y99.96%
EBIT Next Year39.49%
EBIT Next 3Y19.65%
EBIT Next 5Y16.92%
FCF growth 1Y636.43%
FCF growth 3Y41.69%
FCF growth 5Y37.33%
OCF growth 1Y351.5%
OCF growth 3Y38.07%
OCF growth 5Y34.05%
REV GROUP INC / REVG FAQ
What is the fundamental rating for REVG stock?
ChartMill assigns a fundamental rating of 6 / 10 to REVG.
What is the valuation status of REV GROUP INC (REVG) stock?
ChartMill assigns a valuation rating of 5 / 10 to REV GROUP INC (REVG). This can be considered as Fairly Valued.
What is the profitability of REVG stock?
REV GROUP INC (REVG) has a profitability rating of 7 / 10.
What is the valuation of REV GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REV GROUP INC (REVG) is 24.65 and the Price/Book (PB) ratio is 7.86.
Is the dividend of REV GROUP INC sustainable?
The dividend rating of REV GROUP INC (REVG) is 5 / 10 and the dividend payout ratio is 13.55%.