REV Group, Inc.
REV Group, Inc. Fundamental Analysis
REV Group, Inc. (REVG) shows moderate financial fundamentals with a PE ratio of 32.56, profit margin of 3.86%, and ROE of 23.95%. The company generates $2.5B in annual revenue with moderate year-over-year growth of 3.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze REVG's fundamental strength across five key dimensions:
Efficiency Score
WeakREVG struggles to generate sufficient returns from assets.
Valuation Score
ModerateREVG shows balanced valuation metrics.
Growth Score
WeakREVG faces weak or negative growth trends.
Financial Health Score
ExcellentREVG maintains a strong and stable balance sheet.
Profitability Score
ModerateREVG maintains healthy but balanced margins.
Key Financial Metrics
Is REVG Expensive or Cheap?
P/E Ratio
REVG trades at 32.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, REVG's PEG of -3.29 indicates potential undervaluation.
Price to Book
The market values REV Group, Inc. at 7.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.37 times EBITDA. This signals the market has high growth expectations.
How Well Does REVG Make Money?
Net Profit Margin
For every $100 in sales, REV Group, Inc. keeps $3.86 as profit after all expenses.
Operating Margin
Core operations generate 7.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.95 in profit for every $100 of shareholder equity.
ROA
REV Group, Inc. generates $7.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
REV Group, Inc. generates limited operating cash flow of $242.59M, signaling weaker underlying cash strength.
Free Cash Flow
REV Group, Inc. produces free cash flow of $191.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.92 in free cash annually.
FCF Yield
REVG converts 6.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How REVG Stacks Against Its Sector Peers
| Metric | REVG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.56 | 25.84 | Worse (Expensive) |
| ROE | 23.95% | 1279.00% | Weak |
| Net Margin | 3.86% | -43714.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.51 | 10.62 | Neutral |
| ROA | 7.93% | -1537441.00% (disorted) | Weak |
REVG outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews REV Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
496.15%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
449.37%
Industry Style: Cyclical, Value, Infrastructure
High Growth