REV GROUP INC (REVG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REVG - US7495271071 - Common Stock
50.32 USD
+1.47 (+3.01%)
50.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to REVG. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on REVG. These ratings could make REVG a good candidate for value and 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.
Of the past 5 years REVG 4 years were profitable.
Each year in the past 5 years REVG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.86%, REVG is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
REVG has a better Return On Equity (27.89%) than 93.85% of its industry peers.
REVG has a Return On Invested Capital of 18.41%. This is amongst the best in the industry. REVG outperforms 93.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REVG is below the industry average of 10.24%.
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 comparable to the rest of the industry.
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 45.38% of its industry peers.
In the last couple of years the Operating Margin of REVG has grown nicely.
Looking at the Gross Margin, with a value of 14.43%, REVG is doing worse than 83.08% of the companies in the same industry.
REVG's Gross Margin has improved in the last couple of years.
| 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
REVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
REVG has less shares outstanding than it did 1 year ago.
REVG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for REVG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.72 indicates that REVG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.72, REVG is doing good in the industry, outperforming 76.15% 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.
REVG's Debt to FCF ratio of 0.45 is amongst the best of the industry. REVG outperforms 91.54% of its industry peers.
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 Debt to Equity ratio of 0.23. This is in the better half of the industry: REVG outperforms 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 4.72 |
ROIC/WACC1.86
WACC9.91%
2.3 Liquidity
REVG has a Current Ratio of 1.63. 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 worse Current ratio (1.63) than 68.46% of its industry peers.
REVG has a Quick Ratio of 1.63. 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 90.00% 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.
REVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
Looking at the last year, REVG shows a decrease in Revenue. The Revenue has decreased by -3.17% in the last year.
REVG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
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
REVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.48% yearly.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y66%
EPS Next 2Y48.41%
EPS Next 3Y40.48%
EPS Next 5YN/A
Revenue Next Year2.59%
Revenue Next 2Y5.14%
Revenue Next 3Y5.92%
Revenue Next 5Y5.28%
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
The Price/Earnings ratio is 20.97, which indicates a rather expensive current valuation of REVG.
REVG's Price/Earnings ratio is a bit cheaper when compared to the industry. REVG is cheaper than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. REVG is around the same levels.
With a Price/Forward Earnings ratio of 14.02, REVG is valued correctly.
Based on the Price/Forward Earnings ratio, REVG is valued a bit cheaper than the industry average as 74.62% of the companies are valued more expensively.
REVG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REVG indicates a somewhat cheap valuation: REVG is cheaper than 63.08% of the companies listed in the same industry.
86.15% of the companies in the same industry are more expensive than REVG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
REVG's 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 40.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.71
EPS Next 2Y48.41%
EPS Next 3Y40.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, REVG is not a good candidate for dividend investing.
REVG's Dividend Yield is comparable with the industry average which is at 1.95.
Compared to an average S&P500 Dividend Yield of 2.42, REVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
REVG pays out 12.41% of its income as dividend. This is a sustainable payout ratio.
REVG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.41%
EPS Next 2Y48.41%
EPS Next 3Y40.48%
50.32
+1.47 (+3.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change2.94%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.46B
Revenue(TTM)2.40B
Net Income(TTM)108.00M
Analysts82
Price Target64.06 (27.31%)
Short Float %4.76%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-4.49%
PT rev (3m)28.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)0%
EPS NY rev (3m)8.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.02 | ||
| P/FCF | 12.3 | ||
| P/OCF | 10.55 | ||
| P/B | 6.34 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)2.4
EY4.77%
EPS(NY)3.59
Fwd EY7.14%
FCF(TTM)4.09
FCFY8.13%
OCF(TTM)4.77
OCFY9.48%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.32
PEG (5Y)0.71
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 | 4.72 |
F-Score7
WACC9.91%
ROIC/WACC1.86
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 2Y48.41%
EPS Next 3Y40.48%
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 Year2.59%
Revenue Next 2Y5.14%
Revenue Next 3Y5.92%
Revenue Next 5Y5.28%
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year225.22%
EBIT Next 3Y56.26%
EBIT Next 5Y41.64%
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 7 / 10 to REV GROUP INC (REVG). This can be considered as Undervalued.
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.