REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
51.27 USD
-2.57 (-4.77%)
51.03 USD
-0.24 (-0.47%)
Taking everything into account, REVG scores 6 out of 10 in our fundamental rating. REVG was compared to 130 industry peers in the Machinery industry. REVG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. REVG has a correct valuation and a medium growth rate. This makes REVG very considerable for quality investing!
1. Profitability
1.1 Basic Checks
REVG had positive earnings in the past year.
REVG had a positive operating cash flow in the past year.
REVG had positive earnings in 4 of the past 5 years.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
REVG has a Return On Assets of 8.86%. This is in the better half of the industry: REVG outperforms 76.15% of its industry peers.
Looking at the Return On Equity, with a value of 27.89%, REVG belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.41%, REVG belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for REVG is below the industry average of 10.00%.
The last Return On Invested Capital (18.41%) for REVG is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 27.89% | ||
| ROIC | 18.41% |
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 (4.51%) 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 7.19% is in line compared to the rest of the industry. REVG outperforms 44.62% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
REVG's Gross Margin of 14.43% is on the low side compared to the rest of the industry. REVG is outperformed by 82.31% of its industry peers.
In the last couple of years the Gross Margin of REVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 4.51% | ||
| GM | 14.43% |
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) well above the Cost of Capital (WACC), REVG is creating value.
REVG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for REVG has been reduced compared to 5 years ago.
REVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.75 indicates that REVG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.75, REVG is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
REVG has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.45, REVG belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
REVG has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
REVG has a better Debt to Equity ratio (0.23) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.84
WACC10%
2.3 Liquidity
A Current Ratio of 1.63 indicates that REVG should not have too much problems paying its short term obligations.
The Current ratio of REVG (1.63) is worse than 67.69% of its industry peers.
A Quick Ratio of 0.53 indicates that REVG may have some problems paying its short term obligations.
REVG has a Quick ratio of 0.53. This is amonst the worse of the industry: REVG underperforms 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.45% over the past year.
The Earnings Per Share has been growing by 29.36% on average over the past years. This is a very strong growth
The Revenue has decreased by -3.17% in the past year.
The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)45.45%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%64.58%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%11.3%
3.2 Future
The Earnings Per Share is expected to grow by 39.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.15% on average over the next years.
EPS Next Y66%
EPS Next 2Y48.23%
EPS Next 3Y39.55%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y5.37%
Revenue Next 3Y6.15%
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.
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
REVG is valuated rather expensively with a Price/Earnings ratio of 21.36.
Compared to the rest of the industry, the Price/Earnings ratio of REVG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.10. REVG is around the same levels.
REVG is valuated correctly with a Price/Forward Earnings ratio of 14.32.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 74.62% of the companies listed in the same industry.
REVG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, REVG is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 13.01 |
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.
A more expensive valuation may be justified as REVG's earnings are expected to grow with 39.55% in the coming years.
PEG (NY)0.32
PEG (5Y)0.73
EPS Next 2Y48.23%
EPS Next 3Y39.55%
5. Dividend
5.1 Amount
REVG has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, REVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
12.41% 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.
DP12.41%
EPS Next 2Y48.23%
EPS Next 3Y39.55%
51.27
-2.57 (-4.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change-0.15%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.50B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82.22
Price Target68.08 (32.79%)
Short Float %6.26%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend3.44
Dividend Growth(5Y)76.61%
DP12.41%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.4%
Min EPS beat(2)20.5%
Max EPS beat(2)22.29%
EPS beat(4)4
Avg EPS beat(4)23.21%
Min EPS beat(4)2.04%
Max EPS beat(4)47.98%
EPS beat(8)8
Avg EPS beat(8)33.27%
EPS beat(12)12
Avg EPS beat(12)238.91%
EPS beat(16)14
Avg EPS beat(16)178.3%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.22%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)9
Avg Revenue beat(12)3.06%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)1.52%
PT rev (3m)47.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.04 | ||
| P/FCF | 12.53 | ||
| P/OCF | 10.75 | ||
| P/B | 6.46 | ||
| P/tB | 15.29 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)2.4
EY4.68%
EPS(NY)3.58
Fwd EY6.99%
FCF(TTM)4.09
FCFY7.98%
OCF(TTM)4.77
OCFY9.3%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.32
PEG (5Y)0.73
Graham Number20.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 27.89% | ||
| ROCE | 23.98% | ||
| ROIC | 18.41% | ||
| ROICexc | 19.38% | ||
| ROICexgc | 28.82% | ||
| OM | 7.19% | ||
| PM (TTM) | 4.51% | ||
| GM | 14.43% | ||
| FCFM | 8.33% |
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%
ROICexgc growth 3Y9.61%
ROICexgc 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-Score7
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 137.76% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 8.89 | ||
| Cash Conversion | 118.47% | ||
| Profit Quality | 184.82% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 4.75 |
F-Score7
WACC10%
ROIC/WACC1.84
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)45.45%
EPS 3Y11.69%
EPS 5Y29.36%
EPS Q2Q%64.58%
EPS Next Y66%
EPS Next 2Y48.23%
EPS Next 3Y39.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y-0.01%
Revenue growth 5Y-0.2%
Sales Q2Q%11.3%
Revenue Next Year2.76%
Revenue Next 2Y5.37%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year225.22%
EBIT Next 3Y56.26%
EBIT Next 5YN/A
FCF growth 1Y159.56%
FCF growth 3Y-42.2%
FCF growth 5Y-2.11%
OCF growth 1Y120.66%
OCF growth 3Y-30.39%
OCF growth 5Y0.34%
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 for REVG stock?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the financial health for REVG stock?
The financial health rating of REV GROUP INC (REVG) is 7 / 10.
Can you provide the expected EPS growth for REVG stock?
The Earnings per Share (EPS) of REV GROUP INC (REVG) is expected to grow by 66% in the next year.