REVOLVE GROUP INC (RVLV)

US76156B1070 - Common Stock

21.25  +0.7 (+3.41%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to RVLV. RVLV was compared to 126 industry peers in the Specialty Retail industry. RVLV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, RVLV is valued expensive at the moment.



6

1. Profitability

1.1 Basic Checks

In the past year RVLV was profitable.
In the past year RVLV had a positive cash flow from operations.
RVLV had positive earnings in 4 of the past 5 years.
RVLV had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

RVLV's Return On Assets of 4.63% is fine compared to the rest of the industry. RVLV outperforms 65.08% of its industry peers.
The Return On Equity of RVLV (7.32%) is better than 60.32% of its industry peers.
With a Return On Invested Capital value of 5.87%, RVLV perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RVLV is in line with the industry average of 14.71%.
The last Return On Invested Capital (5.87%) for RVLV is well below the 3 year average (15.27%), which needs to be investigated, but indicates that RVLV had better years and this may not be a problem.
Industry RankSector Rank
ROA 4.63%
ROE 7.32%
ROIC 5.87%
ROA(3y)11.84%
ROA(5y)10.38%
ROE(3y)18.08%
ROE(5y)15.75%
ROIC(3y)15.27%
ROIC(5y)19.34%

1.3 Margins

RVLV has a better Profit Margin (2.64%) than 61.90% of its industry peers.
RVLV's Profit Margin has declined in the last couple of years.
The Operating Margin of RVLV (3.05%) is comparable to the rest of the industry.
RVLV's Operating Margin has declined in the last couple of years.
RVLV has a better Gross Margin (51.85%) than 81.75% of its industry peers.
RVLV's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.05%
PM (TTM) 2.64%
GM 51.85%
OM growth 3Y-33.9%
OM growth 5Y-18.37%
PM growth 3Y-35.43%
PM growth 5Y-15.62%
GM growth 3Y-0.46%
GM growth 5Y-0.51%

9

2. Health

2.1 Basic Checks

RVLV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RVLV has been reduced compared to 1 year ago.
RVLV has more shares outstanding than it did 5 years ago.
There is no outstanding debt for RVLV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 7.12 indicates that RVLV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.12, RVLV belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
RVLV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.12
ROIC/WACC0.66
WACC8.88%

2.3 Liquidity

RVLV has a Current Ratio of 2.79. This indicates that RVLV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.79, RVLV belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
RVLV has a Quick Ratio of 1.71. This is a normal value and indicates that RVLV is financially healthy and should not expect problems in meeting its short term obligations.
RVLV has a Quick ratio of 1.71. This is amongst the best in the industry. RVLV outperforms 87.30% of its industry peers.
Industry RankSector Rank
Current Ratio 2.79
Quick Ratio 1.71

5

3. Growth

3.1 Past

RVLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.90%.
The Earnings Per Share has been decreasing by -3.20% on average over the past years.
Looking at the last year, RVLV shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
The Revenue has been growing by 16.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-51.9%
EPS 3Y-21.65%
EPS 5Y-3.2%
EPS growth Q2Q-54.55%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y22.55%
Revenue growth 5Y16.47%
Revenue growth Q2Q-0.55%

3.2 Future

Based on estimates for the next years, RVLV will show a very strong growth in Earnings Per Share. The EPS will grow by 45.51% on average per year.
The Revenue is expected to grow by 15.96% on average over the next years. This is quite good.
EPS Next Y22.6%
EPS Next 2Y33.67%
EPS Next 3Y40.98%
EPS Next 5Y45.51%
Revenue Next Year3.71%
Revenue Next 2Y6.51%
Revenue Next 3Y10.21%
Revenue Next 5Y15.96%

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 stable.

2

4. Valuation

4.1 Price/Earnings Ratio

RVLV is valuated quite expensively with a Price/Earnings ratio of 55.92.
RVLV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RVLV to the average of the S&P500 Index (26.42), we can say RVLV is valued expensively.
A Price/Forward Earnings ratio of 45.61 indicates a quite expensive valuation of RVLV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RVLV is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RVLV to the average of the S&P500 Index (22.74), we can say RVLV is valued expensively.
Industry RankSector Rank
PE 55.92
Fwd PE 45.61

4.2 Price Multiples

62.70% of the companies in the same industry are cheaper than RVLV, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as RVLV.
Industry RankSector Rank
P/FCF 38.43
EV/EBITDA 32.09

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RVLV does not grow enough to justify the current Price/Earnings ratio.
RVLV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RVLV's earnings are expected to grow with 40.98% in the coming years.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y33.67%
EPS Next 3Y40.98%

0

5. Dividend

5.1 Amount

RVLV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

REVOLVE GROUP INC

NYSE:RVLV (3/28/2024, 3:30:08 PM)

21.25

+0.7 (+3.41%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.50B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 55.92
Fwd PE 45.61
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)2.47
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.63%
ROE 7.32%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.05%
PM (TTM) 2.64%
GM 51.85%
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 Turnover1.76
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.79
Quick Ratio 1.71
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)-51.9%
EPS 3Y-21.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y22.55%
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