Rev Group Intrinsic Value – REV GROUP Reports Third Quarter FY2023 Earnings Results
September 20, 2023
🌥️Earnings Overview
REV GROUP ($NYSE:REVG) reported their financial results for the third quarter of FY2023, which ended on July 31 2023. Total revenue surged 14.3% year-over-year to USD 680.0 million, and net income rose 56.8% to USD 14.9 million from the same period last year.
Stock Price
The REV GROUP, a company specializing in the making of specialty vehicles and parts for the commercial, fire & emergency, and recreation markets, reported its third-quarter financial results for FY2023 on Wednesday. On the same day, REV GROUP’s stock opened at $14.0 and closed at $14.0, representing an 8.6% increase from the previous day’s closing price of 12.9. The company also announced that it plans to continue to invest in its business and expand its product portfolio in order to drive growth and continue to deliver value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rev Group. More…
| Total Revenues | Net Income | Net Margin |
| 2.57k | 24.3 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rev Group. More…
| Operations | Investing | Financing |
| 105.5 | -21.5 | -87.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rev Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.38k | 910.9 | 7.88 |
Key Ratios Snapshot
Some of the financial key ratios for Rev Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.5% | 14.8% | 2.3% |
| FCF Margin | ROE | ROA |
| 3.0% | 8.1% | 2.7% |
Analysis – Rev Group Intrinsic Value
GoodWhale conducted an analysis of the fundamentals of REV GROUP and found that the intrinsic value of its stock is around $15.0. This was determined using GoodWhale’s proprietary Valuation Line, which assesses a company’s intrinsic value based on corporate and financial performance. Currently, REV GROUP stock is trading at $14.0, implying that it is undervalued by 6.8%. This provides investors with an opportunity to purchase shares in a company at a significant discount to its intrinsic value. More…
Peers
The competition between REV Group Inc and its competitors, Buhler Industries Inc, The Shyft Group Inc and Ashok Leyland Ltd, is fierce. Each company is striving to outdo the other in terms of product quality, customer service, and innovation. With such strong competition, the industry is constantly evolving and providing customers with the latest products and services.
– Buhler Industries Inc ($TSX:BUI)
Buhler Industries Inc is a publicly traded company based in Winnipeg, Manitoba, Canada. It is primarily engaged in the design, manufacture, and sale of agricultural equipment and related products. The company has a market cap of 47.5M as of 2022, with a Return on Equity (ROE) of 12.01%. This indicates that the company is performing well financially, as the ROE is relatively high compared to other companies in the industry. Buhler Industries Inc also offers a wide range of services and products, such as grain handling, material handling, hay and forage equipment, as well as small engine power products. The company also has a strong presence in the North American market, with a strong customer base and an extensive dealer network.
– The Shyft Group Inc ($NASDAQ:SHYF)
The Shyft Group Inc is a leading provider of digital identity, compliance, and employment verification services. The company has a market capitalization of 867.65M as of 2022, which indicates that it is a well-established player in the industry. Furthermore, its Return on Equity (ROE) of 11.13% indicates that the company is able to generate strong profits from its investments. The Shyft Group Inc’s digital identity and compliance offerings enable customers to securely manage and share identity information and verify worker credentials at a fraction of the cost and time of traditional methods. The company is also well-positioned to capitalize on the increasing demand for digital identity solutions in the global markets.
– Ashok Leyland Ltd ($BSE:500477)
Ashok Leyland Ltd is an Indian automobile manufacturing company that was founded in 1948. It is the second largest commercial vehicle manufacturer in India and the fourth largest manufacturer of buses in the world. The company has a market cap of 404.6 billion as of 2022 and a Return on Equity (ROE) of 21.98%. This shows that the company has been successful in delivering returns to its shareholders and has a strong capital structure. Ashok Leyland Ltd produces a wide range of commercial vehicles including trucks, buses, light commercial vehicles, and defense vehicles. It also provides spare parts and other services for their vehicles. The company has a strong presence in India, Africa, Asia, and the Middle East.
Summary
Investors have responded positively to REV Group‘s third quarter earnings for FY2023, which saw total revenue of USD 680.0 million, representing a 14.3% year-over-year increase. Net income was even more impressive, growing 56.8% year-over-year to USD 14.9 million. This strong financial performance and positive investor sentiment has been reflected in the stock price, which has seen a notable increase since the results were announced. This could be a sign of future growth potential for investors looking at REV Group as a potential investment.
