REV Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>REV</div>
REV Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 55.26 Million. The current year Interest Coverage is expected to grow to 0.57, whereas Calculated Tax Rate is forecasted to decline to (579.41) . While some of us are becoming more passionate about industrials space, it makes sense to digest REV Group in greater detail. I will take a closer look at this stock and the latest sentiment generated by shareholders. This post is to show some fundamental factors affecting REV's products and services. I will also exhibit how it may impact the investing outlook for REV in October.
Published over two weeks ago
View all stories for REV | View All Stories
Wild options for REV shareholders
The company reported the previous year's revenue of 2.35 B. Net Loss for the year was (20 M) with profit before overhead, payroll, taxes, and interest of 251.8 M. The company has Profit Margin (PM) of (0.85) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 2.23 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.02.

How important is REV's Liquidity

REV financial leverage refers to using borrowed capital as a funding source to finance REV Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. REV financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between REV's total debt and its cash.

How REV utilizes its cash?

To perform a cash flow analysis of REV, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash REV is receiving and how much cash it distributes out in a given period. The REV cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. REV Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 47.25 Million

What is driving REV Investor Appetite?

REV owns a total of sixty-three million four hundred ten thousand outstanding shares. The majority of REV Group outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in REV Group to benefit from reduced commissions. Therefore, institutional investors are subject to a different set of regulations than regular investors in REV. Please pay attention to any change in the institutional holdings of REV Group as this could imply that something significant has changed or about to change at the company. Also note that almost four million four hundred thirty-eight thousand seven hundred invesors are currently shorting REV expressing very little confidence in its future performance.

Ownership Breakdown

Institutions
102.61%
Retail Investors-6.94
Insiders4.33
Institutions102.61

REV showing appearance of lower volatility

Latest Jensen Alpha is up to 0.05. Price may dip again. REV Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect REV Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of REV future alpha.

The Bottom Line

Although some other firms within the farm & heavy construction machinery industry are still a little expensive, even after the recent corrections, REV may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe it may be a good time to sell REV as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to REV.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of REV Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com