Is REVG a high-quality business?

AlphaMadera's AlphaQuality grade scores REV Group, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how REVG compares to a Buffett-style quality bar.

What is REV Group, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to REVG based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes REVG a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

REVG - REV Group, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $55.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B 73.8 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

A+ 95.5

5yr Avg ROIC 24.8% 100/100
Operating Margin Trend +1.04 pp/yr 86/100

Capital Efficiency

Weight: 15%

A+ 96.9

5yr Avg ROE 22.0% 95/100
5yr Share-Count CAGR -6.0% 100/100

Growth Quality

Weight: 10%

C+ 59.2

5yr Revenue CAGR 0.9% 27/100
5yr EPS CAGR 28.6% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

C+ 59.1

5yr FCF Margin 4.2% 46/100
5yr FCF/NI Conversion 2.31x 75/100

Balance Sheet

Weight: 25%

A 87.5

Net Debt / EBITDA 0.13x 94/100
Interest Coverage (EBIT/Int) 5.68x 68/100
Altman Z-Score 5.33 100/100

Stability

Weight: 20%

D+ 41.7

EPS Volatility (σ/μ) 1.33 0/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 2/5 60/100

0 of 4 gurus held; 4 full exits.

Holders: 0 -4
Avg Δ position: —
New buys: 0
Full exits: 4

Cooperman sold -100%
Soros sold -100%
Greenblatt sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.