COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
NYSE:CVLG - New York Stock Exchange, Inc. - US22284P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CVLG. CVLG was compared to 39 industry peers in the Ground Transportation industry. There are concerns on the financial health of CVLG while its profitability can be described as average. CVLG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CVLG had positive earnings in the past year.
In the past year CVLG had a positive cash flow from operations.
Of the past 5 years CVLG 4 years were profitable.
Of the past 5 years CVLG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CVLG (4.16%) is comparable to the rest of the industry.
CVLG has a Return On Equity of 9.73%. This is comparable to the rest of the industry: CVLG outperforms 55.26% of its industry peers.
The Return On Invested Capital of CVLG (4.86%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 9.73% | ||
| ROIC | 4.86% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVLG has a Profit Margin of 3.72%. This is comparable to the rest of the industry: CVLG outperforms 42.11% of its industry peers.
CVLG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.61%, CVLG is in line with its industry, outperforming 42.11% of the companies in the same industry.
CVLG's Operating Margin has improved in the last couple of years.
CVLG's Gross Margin of 65.96% is fine compared to the rest of the industry. CVLG outperforms 76.32% of its industry peers.
CVLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 3.72% | ||
| GM | 65.96% |
OM growth 3Y-12.22%
OM growth 5Y38.59%
PM growth 3Y-18.21%
PM growth 5Y27.02%
GM growth 3Y4.84%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVLG is destroying value.
There is no outstanding debt for CVLG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CVLG has an Altman-Z score of 2.57. This is not the best score and indicates that CVLG is in the grey zone with still only limited risk for bankruptcy at the moment.
CVLG has a Altman-Z score (2.57) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.46 indicates that CVLG is not too dependend on debt financing.
CVLG has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC0.56
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CVLG should not have too much problems paying its short term obligations.
CVLG has a Current ratio (1.10) which is in line with its industry peers.
CVLG has a Quick Ratio of 1.07. This is a normal value and indicates that CVLG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, CVLG is in line with its industry, outperforming 55.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
CVLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.98%.
The Earnings Per Share has been growing by 30.20% on average over the past years. This is a very strong growth
Looking at the last year, CVLG shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
CVLG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.03% yearly.
EPS 1Y (TTM)-42.98%
EPS 3Y-12.78%
EPS 5Y30.2%
EPS Q2Q%-54.21%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%1.22%
3.2 Future
Based on estimates for the next years, CVLG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.35% on average per year.
Based on estimates for the next years, CVLG will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-6.62%
EPS Next 2Y8.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CVLG is valuated reasonably with a Price/Earnings ratio of 10.65.
CVLG's Price/Earnings ratio is rather cheap when compared to the industry. CVLG is cheaper than 94.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVLG to the average of the S&P500 Index (29.63), we can say CVLG is valued rather cheaply.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of CVLG.
CVLG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVLG is cheaper than 89.47% of the companies in the same industry.
CVLG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y8.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, CVLG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.37, CVLG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
CVLG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CVLG pays out 13.86% of its income as dividend. This is a sustainable payout ratio.
DP13.86%
EPS Next 2Y8.35%
EPS Next 3YN/A
25.55
-0.53 (-2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners67.18%
Inst Owner ChangeN/A
Ins Owners25.73%
Ins Owner Change-1.7%
Market Cap673.50M
Analysts82
Price Target36.04 (41.06%)
Short Float %N/A
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP13.86%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.73%
Min EPS beat(2)-2.85%
Max EPS beat(2)4.31%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-2.85%
Max EPS beat(4)5.58%
EPS beat(8)5
Avg EPS beat(8)3.11%
EPS beat(12)9
Avg EPS beat(12)9.12%
EPS beat(16)11
Avg EPS beat(16)12.38%
Revenue beat(2)0
Avg Revenue beat(2)-4.77%
Min Revenue beat(2)-5.86%
Max Revenue beat(2)-3.68%
Revenue beat(4)1
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)1.05%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)1.19%
Revenue beat(16)9
Avg Revenue beat(16)1.95%
PT rev (1m)-49.52%
PT rev (3m)-49.76%
EPS NQ rev (1m)-50.83%
EPS NQ rev (3m)-50.83%
EPS NY rev (1m)-54.73%
EPS NY rev (3m)-54.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.48%
Revenue NY rev (3m)-3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 11.42 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | 5.07 | ||
| P/B | 1.56 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)2.4
EY9.39%
EPS(NY)2.24
Fwd EY8.75%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)5.04
OCFY19.72%
SpS42.8
BVpS16.37
TBVpS9.87
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 9.73% | ||
| ROCE | 6.38% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 6.52% | ||
| OM | 4.61% | ||
| PM (TTM) | 3.72% | ||
| GM | 65.96% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-12.22%
OM growth 5Y38.59%
PM growth 3Y-18.21%
PM growth 5Y27.02%
GM growth 3Y4.84%
GM growth 5Y1.05%
F-Score6
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 286.69% | ||
| Cap/Sales | 21.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.66%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.98%
EPS 3Y-12.78%
EPS 5Y30.2%
EPS Q2Q%-54.21%
EPS Next Y-6.62%
EPS Next 2Y8.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%1.22%
Revenue Next Year2.67%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.71%
EBIT growth 3Y-9.89%
EBIT growth 5Y45.56%
EBIT Next Year140.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-73.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.78%
OCF growth 3YN/A
OCF growth 5YN/A