Revolve Group, Inc. Fundamental Analysis
Revolve Group, Inc. (RVLV) shows moderate financial fundamentals with a PE ratio of 21.50, profit margin of 5.05%, and ROE of 12.85%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 8.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.5/100 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 RVLV's fundamental strength across five key dimensions:
Efficiency Score
WeakRVLV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRVLV trades at attractive valuation levels.
Growth Score
ExcellentRVLV delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRVLV maintains a strong and stable balance sheet.
Profitability Score
WeakRVLV struggles to sustain strong margins.
Key Financial Metrics
Is RVLV Expensive or Cheap?
P/E Ratio
RVLV trades at 21.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RVLV's PEG of 0.86 indicates potential undervaluation.
Price to Book
The market values Revolve Group, Inc. at 2.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.30 times EBITDA. This signals the market has high growth expectations.
How Well Does RVLV Make Money?
Net Profit Margin
For every $100 in sales, Revolve Group, Inc. keeps $5.05 as profit after all expenses.
Operating Margin
Core operations generate 5.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.85 in profit for every $100 of shareholder equity.
ROA
Revolve Group, Inc. generates $7.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Revolve Group, Inc. generates limited operating cash flow of $63.57M, signaling weaker underlying cash strength.
Free Cash Flow
Revolve Group, Inc. produces free cash flow of $46.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.66 in free cash annually.
FCF Yield
RVLV converts 3.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RVLV Stacks Against Its Sector Peers
| Metric | RVLV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.50 | 24.20 | Better (Cheaper) |
| ROE | 12.85% | 1170.00% | Weak |
| Net Margin | 5.05% | 2530.00% | Weak |
| Debt/Equity | 0.06 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 2.54 | 2.82 | Strong Liquidity |
| ROA | 7.82% | -8380.00% (disorted) | Weak |
RVLV outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Revolve Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.58%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
6.34%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
-21.21%
Industry Style: Cyclical, Growth, Discretionary
Declining