DB:1RG

Stock Analysis Report

Executive Summary

REV Group, Inc. designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, Latin America, the Caribbean, and internationally.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has REV Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

1RG

1.9%

DE Machinery

2.4%

DE Market


1 Year Return

1.1%

1RG

-14.9%

DE Machinery

4.9%

DE Market

Return vs Industry: 1RG exceeded the German Machinery industry which returned -14.9% over the past year.

Return vs Market: 1RG underperformed the German Market which returned 4.9% over the past year.


Shareholder returns

1RGIndustryMarket
7 Day4.8%1.9%2.4%
30 Day8.1%-3.5%2.3%
90 Day-11.8%-4.1%2.7%
1 Year3.0%1.1%-12.2%-14.9%8.2%4.9%
3 Yearn/a-15.7%-21.7%18.3%8.0%
5 Yearn/a21.6%7.3%44.2%24.6%

Price Volatility Vs. Market

How volatile is REV Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is REV Group undervalued compared to its fair value and its price relative to the market?

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1RG (€11) is trading below our estimate of fair value (€18.36)

Significantly Below Fair Value: 1RG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1RG is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: 1RG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1RG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1RG is overvalued based on its PB Ratio (1.5x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is REV Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

115.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1RG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1RG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1RG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1RG's revenue (1.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 1RG's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1RG's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has REV Group performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1RG is unprofitable, and losses have increased over the past 5 years at a rate of -13.7% per year.

Accelerating Growth: Unable to compare 1RG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1RG is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-11.2%).


Return on Equity

High ROE: 1RG has a negative Return on Equity (-4.91%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1RG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1RG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is REV Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1RG's short term assets ($865.2M) exceeds its short term liabilities ($434.5M)

Long Term Liabilities: 1RG's short term assets (865.2M) exceeds its long term liabilities (454.1M)


Debt to Equity History and Analysis

Debt Level: 1RG's debt to equity ratio (80.9%) is considered high

Reducing Debt: Insufficient data to determine if 1RG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1RG's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: 1RG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 1RG has a high level of physical assets or inventory.

Debt Coverage by Assets: 1RG's debt is covered by short term assets (assets are 2.066880x debt).


Next Steps

Dividend

What is REV Group's current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Upcoming Dividend Payment

Purchase REV Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1RG's dividend (1.63%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 1RG's dividend (1.63%) is low compared to the top 25% of dividend payers in the German market (3.79%).

Stable Dividend: Whilst dividend payments have been stable, 1RG has been paying a dividend for less than 10 years.

Growing Dividend: 1RG has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: 1RG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 1RG's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

What is the CEO of REV Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Tim Sullivan (66yo)

5.2yrs

Tenure

US$4,085,514

Compensation

Mr. Timothy William Sullivan, also known as Tim, has been the Chief Executive Officer of REV Group, Inc. (formerly, Allied Specialty Vehicles, Inc.) since August 11, 2014 and served as its President. Mr. S ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Tim's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Tim's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 1RG's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 1RG's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: 1RG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$90,51918 Sep 19
Dean Nolden
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares9,158
Max PriceUS$9.88
BuyUS$433,44311 Sep 19
Timothy Sullivan
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$8.67

Ownership Breakdown


Management Team

  • Tim Sullivan (66yo)

    CEO & Director

    • Tenure: 5.2yrs
    • Compensation: US$4.09m
  • Dean Nolden (51yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.01m
  • Tony Besasie

    Chief Marketing Officer

    • Tenure: 0yrs
  • Ian Walsh (52yo)

    Chief Operating Officer

    • Tenure: 1.4yrs
    • Compensation: US$2.15m
  • Bob Collins (65yo)

    Executive Officer

    • Tenure: 3.8yrs
  • Sandy Bugbee

    VP of Investor Relations & Treasurer

    • Tenure: 3.6yrs
  • Stephen Boettinger (50yo)

    General Counsel & Secretary

    • Tenure: 1.3yrs
    • Compensation: US$722.74k
  • Peter Panagis (60yo)

    Chief Information Officer

    • Tenure: 2.1yrs
  • Chris Daniels

    Chief Human Resources Officer

    • Tenure: 0.7yrs
  • Julie Nuernberg

    Director of Public Relations & Social Media Marketing

    • Tenure: 0yrs

Board Members

  • Kim Marvin (58yo)

    Director

    • Tenure: 11.8yrs
  • Donn Viola (74yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$170.00k
  • Paul Bamatter (62yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Dino Cusumano (45yo)

    Director

    • Tenure: 11.8yrs
  • Tim Sullivan (66yo)

    CEO & Director

    • Tenure: 5.2yrs
    • Compensation: US$4.09m
  • Charles Dutil (53yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$162.50k
  • John Canan (63yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$95.00k
  • Joel Rotroff (36yo)

    Director

    • Tenure: 3.8yrs
  • Justin Fish (36yo)

    Director

    • Tenure: 3.8yrs

Company Information

REV Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: REV Group, Inc.
  • Ticker: 1RG
  • Exchange: DB
  • Founded:
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$747.116m
  • Listing Market Cap: US$670.611m
  • Shares outstanding: 62.21m
  • Website: https://www.revgroup.com

Number of Employees


Location

  • REV Group, Inc.
  • 111 East Kilbourn Avenue
  • Suite 2600
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REVGNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 2017
1RGDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2017

Biography

REV Group, Inc. designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, Latin America, the Caribbean, and internationally. It operates throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:49
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.