NYSE:REVG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


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

Stable Share Price: REVG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: REVG's weekly volatility has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

5.3%

REVG

0.9%

US Machinery

-0.06%

US Market


1 Year Return

-27.3%

REVG

17.6%

US Machinery

19.0%

US Market

Return vs Industry: REVG underperformed the US Machinery industry which returned 17.6% over the past year.

Return vs Market: REVG underperformed the US Market which returned 19% over the past year.


Shareholder returns

REVGIndustryMarket
7 Day5.3%0.9%-0.06%
30 Day15.4%8.0%4.4%
90 Day17.4%16.6%6.3%
1 Year-26.1%-27.3%20.7%17.6%21.7%19.0%
3 Year-62.4%-64.1%35.1%25.4%46.4%36.7%
5 Yearn/a120.9%96.1%91.0%69.9%

Long-Term 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

Valuation

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

1.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: REVG ($9.52) is trading above our estimate of fair value ($7.48)

Significantly Below Fair Value: REVG is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: REVG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REVG is good value based on its PB Ratio (1.3x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

How is REV Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

114.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REVG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: REVG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: REVG's is expected to become profitable in the next 3 years.

Revenue vs Market: REVG's revenue (3.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: REVG's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REVG's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has REV Group performed over the past 5 years?

-50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REVG is currently unprofitable.

Growing Profit Margin: REVG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REVG is unprofitable, and losses have increased over the past 5 years at a rate of 50.9% per year.

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

Earnings vs Industry: REVG is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-15.7%).


Return on Equity

High ROE: REVG has a negative Return on Equity (-6.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is REV Group's financial position?


Financial Position Analysis

Short Term Liabilities: REVG's short term assets ($886.8M) exceed its short term liabilities ($468.8M).

Long Term Liabilities: REVG's short term assets ($886.8M) exceed its long term liabilities ($458.5M).


Debt to Equity History and Analysis

Debt Level: REVG's debt to equity ratio (81%) is considered high.

Reducing Debt: REVG's debt to equity ratio has reduced from 98.3% to 81% over the past 5 years.

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

Interest Coverage: Insufficient data to determine if REVG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate REVG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate REVG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if REVG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REVG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: REVG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REVG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Rod Rushing (53 yo)

0.67

Tenure

Mr. Rodney N. Rushing, also known as Rod, has been Chief Executive Officer and Director of REV Group, Inc. since March 23, 2020 and also serves as its President since March 2020. Mr. Rushing assumes day-to...


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Boettinger
General Counsel & Secretary2.42yrsUS$801.14k0.075%
$ 455.6k
Christopher Daniels
Chief Human Resources Officer1.75yrsUS$721.43k0.085%
$ 512.3k
Rodney Rushing
President0.67yrno data0.59%
$ 3.6m
Mark Skonieczny
Chief Financial Officer0.42yrno data0.17%
$ 1.0m
Peter Panagis
Chief Information Officer3.17yrsno datano data
Drew Konop
Vice President of Investor Relations & Corporate Developmentno datano datano data
Julie Nuernberg
Director of Public Relations & Social Media Marketingno datano datano data
Anthony Besasie
Chief Marketing Officerno datano datano data
Brian Perry
President of Commercial Segment1.17yrsno datano data
Anoop Prakash
President of Ambulance Group1.17yrsno datano data
Kent Tyler
President of Fire Group0.67yrno datano data
Gary Hunter
Chief Executive Officer of Leader Emergency Vehicles and President of Leader Emergency Vehiclesno datano datano data

1.2yrs

Average Tenure

52yo

Average Age

Experienced Management: REVG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rodney Rushing
President0.67yrno data0.59%
$ 3.6m
Donn Viola
Independent Director4.83yrsUS$195.00k0.088%
$ 534.2k
Paul Bamatter
Chairman of the Boardno datano data0.31%
$ 1.9m
Dino Cusumano
Director12.83yrsno data0.23%
$ 1.4m
Charles Dutil
Independent Director4.83yrsUS$187.50k0.023%
$ 140.5k
Randall Swift
Director0.67yrno data0.040%
$ 238.9k
Jean-Marie Canan
Lead Independent Director0.92yrUS$202.50k0.032%
$ 193.3k
Joel Rotroff
Director4.83yrsno data0.033%
$ 200.6k
Justin Fish
Director4.83yrsno data0.028%
$ 172.1k

4.8yrs

Average Tenure

53yo

Average Age

Experienced Board: REVG's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

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


Key Information

  • Name: REV Group, Inc.
  • Ticker: REVG
  • Exchange: NYSE
  • Founded:
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$604.293m
  • Shares outstanding: 63.48m
  • 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 Analysis2020/11/24 00:18
End of Day Share Price2020/11/23 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


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.