REV Group (REVG) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 0.59%
• Average Volume (3M): 641.60K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.31
• Revenue Growth: -12.16%
• EPS Growth: -56.14%
• Country: US
• Employees: 5,500
• Sector: Industrials
• Sector Strength: 92
• Industry: Agricultural - Machinery
• EPS (TTM): 0.40
• Shares Outstanding: 51,675,163
• 10 Day Avg. Volume: 658,916
• 30 Day Avg. Volume: 641,601
• PEG Ratio: -0.34
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: -2.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

REV Group's overall stock score reflects a solid financial foundation with strong cash flow and efficient equity use. The positive earnings call outlook, featuring record adjusted EBITDA and a strong backlog, supports future growth prospects. However, technical analysis shows a lack of momentum, and valuation is average, suggesting a balanced risk-reward profile.

Positive Factors

Earnings and Guidance

REVG reported 1Q25 adjusted EPS of $0.40 ahead of consensus estimate of $0.25.

Revenue and Trade Shows

The updated forecast includes moderately higher Recreational Vehicle revenue reflecting positive commentary out of the Tampa trade show.

Negative Factors

Financial Risk and Tariffs

There is potential financial risk to REVG from tariffs, particularly given the fixed nature of contracts that historically made it difficult for the company to pass through costs real time.

Revenue Decline

Net sales declined by 13.8% year/year to $597.9 million, falling below the $603.3 million consensus.

REV Group Business Overview & Revenue Model

Company Description

REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, and Ladder Tower brands; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brands. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Capacity, ENC, and Lay-Mor brands. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade, Midwest, and Lance brands; and produces a range of custom molded fiberglass products for the heavy-duty truck, RV, and broader industrial markets. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. is based in Brookfield, Wisconsin.

How the Company Makes Money

REV Group generates revenue through the manufacturing and sale of specialty vehicles across multiple segments. Key revenue streams include the sale of emergency vehicles like ambulances and fire trucks, commercial vehicles such as buses and vans, and recreational vehicles like motorhomes. The company also earns from aftermarket parts and service offerings, providing maintenance and repair services for its vehicles. Significant partnerships with government agencies, municipalities, and commercial enterprises bolster its sales, while its diverse product lineup helps mitigate risks associated with market fluctuations in any single sector.

REV Group Financial Statement Overview

Summary

REV Group shows a solid financial position with strong cash flow generation and efficient equity utilization. While profitability at the net level has slightly declined, the company maintains low leverage and a healthy return on equity. Continued focus on revenue growth and net income stability will be critical for future performance.

Income Statement

The income statement shows a stable gross profit margin of 13.1% for TTM, with a notable improvement in EBIT margin to 5.1% and EBITDA margin to 7.2%. However, the net profit margin decreased to 4.0% from the previous annual 10.8%, indicating some challenges in maintaining profitability at net income level. Revenue growth has been inconsistent, showing a decline in the most recent period.

Balance Sheet

The balance sheet reflects a manageable debt-to-equity ratio of 0.38, suggesting low leverage risk. The equity ratio has dipped slightly to 34.5% from the previous year, indicating a moderate reliance on liabilities. Return on equity for TTM is at a healthy 21.7%, demonstrating efficient equity utilization, but the decreasing equity trend could pose future risks.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate with a significant increase in free cash flow for TTM. Operating cash flow to net income ratio stands at 1.18, indicating robust cash generation relative to net income. However, the free cash flow to net income ratio of 0.95 suggests that most profits are being converted into cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.32B	2.38B	2.64B	2.33B	2.38B	2.28B
	Gross Profit
303.60M	297.30M	316.10M	247.50M	291.00M	228.10M
	EBIT
119.20M	79.60M	88.60M	36.80M	83.80M	4.10M
	EBITDA
173.00M	394.30M	113.00M	69.00M	120.10M	19.80M
	Net Income Common Stockholders
93.10M	257.60M	45.30M	15.20M	44.40M	-30.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.60M	24.60M	21.30M	20.40M	13.30M	11.40M
	Total Assets
1.24B	1.21B	1.41B	1.34B	1.24B	1.31B
	Total Debt
171.40M	118.00M	187.40M	250.30M	234.90M	367.50M
	Net Debt
139.80M	93.40M	166.10M	229.90M	221.60M	356.10M
	Total Liabilities
813.30M	777.90M	912.40M	888.30M	719.50M	840.00M
	Stockholders Equity
428.80M	435.10M	498.00M	456.30M	518.80M	472.30M
Cash Flow		Free Cash Flow
88.00M	25.80M	93.70M	66.80M	133.60M	38.90M
	Operating Cash Flow
110.00M	53.40M	126.50M	91.60M	158.30M	55.70M
	Investing Cash Flow
46.00M	348.50M	-29.90M	-14.80M	-10.20M	1.70M
	Financing Cash Flow
-212.30M	-398.60M	-95.70M	-69.70M	-146.20M	-49.30M

REV Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REVG, the sentiment is Positive. The current price of 37.03 is above the 20-day moving average (MA) of 36.13, above the 50-day MA of 33.21, and above the 200-day MA of 30.91, indicating a bullish trend. The MACD of 1.47 indicates Positive momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REVG.

REV Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	76 Outperform	$6.29B	10.44	15.24%	1.93%	5.95%	-10.59%
HY	74 Outperform	$701.12M	7.05	21.56%	3.54%	-0.32%	-35.10%
REVG	73 Outperform	$1.91B	20.89	20.13%	0.59%	-12.16%	-56.14%
ASTE	66 Neutral	$886.10M	58.92	2.33%	1.34%	1.99%	-39.02%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
SHYF	63 Neutral	$343.45M	760.47	0.18%	2.04%	-4.08%	―
WNC	48 Neutral	$362.60M	―	-15.01%	3.62%	-25.44%	-135.47%

REV Group Corporate Events

REV Group Reports Strong 2024 Results and 2025 Outlook

REV Group, Inc. has announced its robust fiscal 2024 fourth-quarter and full-year results, highlighting a net income increase and strong overall performance despite a decrease in consolidated net sales. The company is optimistic about fiscal 2025 with new financial targets, a $250 million share repurchase authorization, and a 20% increase in quarterly cash dividends, showcasing its commitment to returning value to shareholders and maintaining financial health.