COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVLG - US22284P1057 - Common Stock
25.58 USD
-0.33 (-1.27%)
Overall CVLG gets a fundamental rating of 4 out of 10. We evaluated CVLG against 42 industry peers in the Ground Transportation industry. While CVLG is still in line with the averages on profitability rating, there are concerns on its financial health. CVLG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- CVLG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.14%, CVLG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
- CVLG has a Return On Equity (7.60%) which is comparable to the rest of the industry.
- CVLG's Return On Invested Capital of 3.27% is in line compared to the rest of the industry. CVLG outperforms 54.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CVLG is in line with the industry average of 6.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 7.6% | ||
| ROIC | 3.27% |
ROA(3y)7.68%
ROA(5y)5.21%
ROE(3y)16.9%
ROE(5y)10.67%
ROIC(3y)6.14%
ROIC(5y)5.88%
1.3 Margins
- CVLG has a Profit Margin of 2.81%. This is comparable to the rest of the industry: CVLG outperforms 59.52% of its industry peers.
- CVLG's Profit Margin has improved in the last couple of years.
- The Operating Margin of CVLG (3.12%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CVLG has grown nicely.
- Looking at the Gross Margin, with a value of 66.86%, CVLG belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
- CVLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 2.81% | ||
| GM | 66.86% |
OM growth 3Y-12.2%
OM growth 5Y38.52%
PM growth 3Y-18.23%
PM growth 5Y27.09%
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.
- CVLG has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for CVLG has been reduced compared to 5 years ago.
- The debt/assets ratio for CVLG has been reduced compared to a year ago.
2.2 Solvency
- CVLG has an Altman-Z score of 2.29. 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 (2.29) which is in line with its industry peers.
- A Debt/Equity ratio of 0.49 indicates that CVLG is not too dependend on debt financing.
- CVLG's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. CVLG outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.29 |
ROIC/WACC0.36
WACC9.14%
2.3 Liquidity
- CVLG has a Current Ratio of 1.01. This is a normal value and indicates that CVLG is financially healthy and should not expect problems in meeting its short term obligations.
- CVLG has a Current ratio of 1.01. This is in the lower half of the industry: CVLG underperforms 61.90% of its industry peers.
- CVLG has a Quick Ratio of 1.01. This is a bad value and indicates that CVLG is not financially healthy enough and could expect problems in meeting its short term obligations.
- CVLG has a worse Quick ratio (0.98) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The earnings per share for CVLG have decreased strongly by -15.84% in the last year.
- Measured over the past years, CVLG shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.91% on average per year.
- The Revenue has been growing slightly by 1.62% in the past year.
- The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)-15.84%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-19.27%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%3.13%
3.2 Future
- The Earnings Per Share is expected to grow by 6.29% on average over the next years.
- The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y-18.79%
EPS Next 2Y2.14%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue Next Year1.72%
Revenue Next 2Y3.8%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.05 indicates a correct valuation of CVLG.
- Based on the Price/Earnings ratio, CVLG is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, CVLG is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 12.42, CVLG is valued correctly.
- 97.62% of the companies in the same industry are more expensive than CVLG, based on the Price/Forward Earnings ratio.
- CVLG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
- 88.10% of the companies in the same industry are more expensive than CVLG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
- The decent profitability rating of CVLG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y2.14%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
- CVLG has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.69, CVLG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 Years0
Div Non Decr Years2
5.3 Sustainability
- CVLG pays out 21.30% of its income as dividend. This is a sustainable payout ratio.
DP21.3%
EPS Next 2Y2.14%
EPS Next 3Y6.29%
COVENANT LOGISTICS GROUP INC / CVLG FAQ
Can you provide the ChartMill fundamental rating for COVENANT LOGISTICS GROUP INC?
ChartMill assigns a fundamental rating of 4 / 10 to CVLG.
What is the valuation status of COVENANT LOGISTICS GROUP INC (CVLG) stock?
ChartMill assigns a valuation rating of 5 / 10 to COVENANT LOGISTICS GROUP INC (CVLG). This can be considered as Fairly Valued.
Can you provide the profitability details for COVENANT LOGISTICS GROUP INC?
COVENANT LOGISTICS GROUP INC (CVLG) has a profitability rating of 6 / 10.
What is the expected EPS growth for COVENANT LOGISTICS GROUP INC (CVLG) stock?
The Earnings per Share (EPS) of COVENANT LOGISTICS GROUP INC (CVLG) is expected to decline by -18.79% in the next year.
Is the dividend of COVENANT LOGISTICS GROUP INC sustainable?
The dividend rating of COVENANT LOGISTICS GROUP INC (CVLG) is 3 / 10 and the dividend payout ratio is 21.3%.