Revolve Group (NYSE:RVLV) - Share price, News & Analysis

RVLV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

RVLV Stock Overview

Revolve Group, Inc. operates as an online fashion retailer for consumers in the United States and internationally.

Rewards

Trading at 64.9% below our estimate of its fair value

Earnings are forecast to grow 21.92% per year

Earnings grew by 34.4% over the past year

Risk Analysis

High level of non-cash earnings

Revolve Group Competitors

Farfetch

NYSE:FTCH

US$3.0b

Industria de Diseño Textil

BME:ITX

€63.6b

H & M Hennes & Mauritz

OM:HM B

kr207.7b

Zalando

XTRA:ZAL

€9.2b

Price History & Performance

Summary of all time highs, changes and price drops for Revolve Group
Historical stock prices
Current Share Price	US$27.74
52 Week High	US$89.60
52 Week Low	US$26.04
Beta	2.33
1 Month Change	-47.46%
3 Month Change	-49.45%
1 Year Change	-42.44%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-18.41%

Recent News & Updates

May 17

Revolve Group: Intriguing Growth Revolving Around A Data-Driven Merchandising Model

Revolve Group owns proprietary algorithms and technology infrastructure that gives it a competitive advantage over other online fashion retailers in maximizing profit. The company’s data-driven merchandising model is producing results that are observable from key performance figures. The company has a pristine financial profile of increasing profitability that fares better than most of its competitors.

May 04

Revolve Group, Inc.'s (NYSE:RVLV) Intrinsic Value Is Potentially 87% Above Its Share Price

Does the May share price for Revolve Group, Inc. ( NYSE:RVLV ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

	RVLV	US Online Retail	US Market
7D	-6.3%	-3.8%	-2.7%
1Y	-42.4%	-43.2%	-12.9%

Return vs Industry: RVLV matched the US Online Retail industry which returned -43.2% over the past year.

Return vs Market: RVLV underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is RVLV's price volatile compared to industry and market?
RVLV volatility
RVLV Average Weekly Movement	11.1%
Online Retail Industry Average Movement	13.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: RVLV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: RVLV's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	1,078	Mike Karanikolas	https://www.revolve.com

Revolve Group, Inc. operates as an online fashion retailer for consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands.

Revolve Group Fundamentals Summary

How do Revolve Group's earnings and revenue compare to its market cap?
RVLV fundamental statistics
Market Cap	US$2.03b
Earnings (TTM)	US$100.23m
Revenue (TTM)	US$995.98m

20.3x

P/E Ratio

2.0x

P/S Ratio

Is RVLV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RVLV income statement (TTM)
Revenue	US$995.98m
Cost of Revenue	US$448.41m
Gross Profit	US$547.57m
Other Expenses	US$447.34m
Earnings	US$100.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.37
Gross Margin	54.98%
Net Profit Margin	10.06%
Debt/Equity Ratio	0%

How did RVLV perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RVLV ($27.74) is trading below our estimate of fair value ($79.01)

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

Price To Earnings Ratio

PE vs Industry: RVLV is poor value based on its PE Ratio (20.3x) compared to the US Online Retail industry average (11.3x).

PE vs Market: RVLV is poor value based on its PE Ratio (20.3x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: RVLV is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: RVLV is overvalued based on its PB Ratio (6x) compared to the US Online Retail industry average (1.9x).

Future Growth

How is Revolve Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RVLV's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: RVLV's earnings (21.9% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RVLV's revenue (17.9% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: RVLV's revenue (17.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: RVLV's Return on Equity is forecast to be high in 3 years time (32.3%)

Past Performance

How has Revolve Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

64.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RVLV has a high level of non-cash earnings.

Growing Profit Margin: RVLV's current net profit margins (10.1%) are lower than last year (12.2%).

Past Earnings Growth Analysis

Earnings Trend: RVLV's earnings have grown significantly by 64.8% per year over the past 5 years.

Accelerating Growth: RVLV's earnings growth over the past year (34.4%) is below its 5-year average (64.8% per year).

Earnings vs Industry: RVLV earnings growth over the past year (34.4%) exceeded the Online Retail industry -8.3%.

Return on Equity

High ROE: RVLV's Return on Equity (29.4%) is considered high.

Financial Health

How is Revolve Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RVLV's short term assets ($519.8M) exceed its short term liabilities ($217.2M).

Long Term Liabilities: RVLV's short term assets ($519.8M) exceed its long term liabilities ($13.1M).

Debt to Equity History and Analysis

Debt Level: RVLV is debt free.

Reducing Debt: RVLV has no debt compared to 5 years ago when its debt to equity ratio was 60.7%.

Debt Coverage: RVLV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RVLV has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.49%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate RVLV'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 RVLV's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RVLV has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.7yrs

Average management tenure

CEO

Mike Karanikolas (42 yo)

no data

Tenure

US$472,594

Compensation

Mr. Michael Karanikolas, also known as Mike, is the Co-Founder, Co-Chief Executive Officer and Chairman of the Board at Revolve Group, Inc. (formally known as Advance Holdings, LLC) and has been serves as...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD472.59K) is below average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: RVLV's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: RVLV's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31