REV Group (REVG) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: 0.53%
• Average Volume (3M): 801.77K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.34
• Revenue Growth: -9.50%
• EPS Growth: -54.36%
• Country: US
• Employees: 5,500
• Sector: Industrials
• Sector Strength: 87
• Industry: Agricultural - Machinery
• EPS (TTM): 0.70
• Shares Outstanding: 48,797,350
• 10 Day Avg. Volume: 1,229,353
• 30 Day Avg. Volume: 801,767
• PEG Ratio: -0.85
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.44
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $39.33
• Price Target Upside: -11.08% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ―

REV Group's strong earnings call performance, supported by solid financials and a strategic focus on specialty vehicles, significantly boosts its stock score. Technical indicators suggest caution due to potential overbought conditions, while valuation metrics indicate fair pricing with moderate income potential.

Positive Factors

Earnings

REV Group's F2Q25 earnings beat expectations and raised FY25 Adjusted EBITDA outlook at the midpoint, suggesting strong company performance.

Financial Performance

The company's Specialty Vehicles segment showed strength and continued growth, reinforcing confidence in its future performance.

Negative Factors

Financial Forecast

There is a reduction in the FY25 Adj. EBITDA estimate from $204M to $202M.

Financial Risk

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.

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

Strong cash flow generation and efficient equity utilization support a solid financial position. Despite a decrease in net profit margin, low leverage and a healthy return on equity indicate financial stability.

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: 44.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 44.23 is above the 20-day moving average (MA) of 40.32, above the 50-day MA of 35.84, and above the 200-day MA of 31.79, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 70.47 is Negative, neither overbought nor oversold. The STOCH value of 86.44 is Negative, 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	77 Outperform	$7.13B	11.84	15.24%	1.83%	5.95%	-10.59%
HY	74 Outperform	$728.57M	7.01	21.56%	3.50%	-0.32%	-35.10%
REVG	73 Outperform	$2.20B	23.72	34.41%	0.53%	-9.50%	-54.36%
ASTE	68 Neutral	$924.05M	61.44	2.33%	1.29%	1.99%	-39.02%
SHYF	66 Neutral	$431.67M	955.81	0.18%	1.64%	-4.08%	―
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
WNC	47 Neutral	$433.36M	―	-15.01%	3.09%	-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.