REV GROUP INC (REVG) Stock Fundamental Analysis
USA - NYSE:REVG - US7495271071 - Common Stock
59.65 USD
-0.62 (-1.03%)
59.65 USD
0 (0%)
Taking everything into account, REVG scores 6 out of 10 in our fundamental rating. REVG was compared to 128 industry peers in the Machinery industry. While REVG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REVG has a correct valuation and a medium growth rate.
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.
In the past 5 years REVG always reported a positive cash flow from operatings.
1.2 Ratios
REVG's Return On Assets of 8.86% is fine compared to the rest of the industry. REVG outperforms 75.78% of its industry peers.
REVG has a better Return On Equity (27.89%) than 93.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.41%, REVG belongs to the top of the industry, outperforming 94.53% 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 10.02%.
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 of 4.51%. This is comparable to the rest of the industry: REVG outperforms 46.09% of its industry peers.
REVG's Profit Margin has improved in the last couple of years.
REVG has a Operating Margin of 7.19%. This is comparable to the rest of the industry: REVG outperforms 44.53% of its industry peers.
REVG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 14.43%, REVG is doing worse than 82.03% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REVG is creating some 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.
The debt/assets ratio for REVG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.07 indicates that REVG is not in any danger for bankruptcy at the moment.
REVG has a better Altman-Z score (5.07) than 79.69% of its industry peers.
The Debt to FCF ratio of REVG is 0.45, which is an excellent value as it means it would take REVG, only 0.45 years of fcf income to pay off all of its debts.
REVG's Debt to FCF ratio of 0.45 is amongst the best of the industry. REVG outperforms 90.63% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that REVG is not too dependend on debt financing.
REVG has a Debt to Equity ratio of 0.23. This is in the better half of the industry: REVG outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.78
WACC10.32%
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's Current ratio of 1.63 is on the low side compared to the rest of the industry. REVG is outperformed by 67.97% 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's Quick ratio of 0.53 is on the low side compared to the rest of the industry. REVG is outperformed by 89.06% 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 36.73% yearly.
The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y53.31%
EPS Next 2Y44.93%
EPS Next 3Y36.73%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y5.39%
Revenue Next 3Y6.33%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 24.85, the valuation of REVG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as REVG.
Compared to an average S&P500 Price/Earnings ratio of 27.20, REVG is valued at the same level.
The Price/Forward Earnings ratio is 17.42, which indicates a rather expensive current valuation of REVG.
66.41% 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 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
REVG's Enterprise Value to EBITDA ratio is in line with the industry average.
84.38% 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 | 14.58 | ||
| EV/EBITDA | 15.24 |
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 36.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.85
EPS Next 2Y44.93%
EPS Next 3Y36.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, REVG is not a good candidate for dividend investing.
REVG's Dividend Yield is comparable with the industry average which is at 1.74.
With a Dividend Yield of 0.38, REVG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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.
The dividend of REVG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.41%
EPS Next 2Y44.93%
EPS Next 3Y36.73%
59.65
-0.62 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change-7.62%
Ins Owners1.58%
Ins Owner Change0%
Market Cap2.91B
Analysts82.22
Price Target67.07 (12.44%)
Short Float %4.88%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)34.18%
PT rev (3m)87.86%
EPS NQ rev (1m)7.93%
EPS NQ rev (3m)8.93%
EPS NY rev (1m)0.41%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 17.42 | ||
| P/S | 1.21 | ||
| P/FCF | 14.58 | ||
| P/OCF | 12.5 | ||
| P/B | 7.52 | ||
| P/tB | 17.79 | ||
| EV/EBITDA | 15.24 |
EPS(TTM)2.4
EY4.02%
EPS(NY)3.42
Fwd EY5.74%
FCF(TTM)4.09
FCFY6.86%
OCF(TTM)4.77
OCFY8%
SpS49.12
BVpS7.94
TBVpS3.35
PEG (NY)0.47
PEG (5Y)0.85
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%
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-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 | 5.07 |
F-Score7
WACC10.32%
ROIC/WACC1.78
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 Y53.31%
EPS Next 2Y44.93%
EPS Next 3Y36.73%
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 Year2.72%
Revenue Next 2Y5.39%
Revenue Next 3Y6.33%
Revenue Next 5YN/A
EBIT growth 1Y51.49%
EBIT growth 3Y8.26%
EBIT growth 5Y29.57%
EBIT Next Year206.14%
EBIT Next 3Y65.38%
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%