COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVLG - US22284P1057 - Common Stock
22.3 USD
+0.26 (+1.18%)
22.3 USD
0 (0%)
Taking everything into account, CVLG scores 4 out of 10 in our fundamental rating. CVLG was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CVLG was profitable.
In the past year CVLG had a positive cash flow from operations.
CVLG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CVLG had a positive operating cash flow.
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.
With a Return On Equity value of 7.60%, CVLG perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
CVLG has a Return On Invested Capital (3.27%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CVLG is in line with the industry average of 6.82%.
| 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
With a Profit Margin value of 2.81%, CVLG perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Profit Margin of CVLG has grown nicely.
With a Operating Margin value of 3.12%, CVLG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CVLG has grown nicely.
CVLG has a Gross Margin of 66.86%. This is amongst the best in the industry. CVLG outperforms 80.95% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVLG is destroying value.
CVLG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVLG has less shares outstanding
CVLG has a better debt/assets ratio than last year.
2.2 Solvency
CVLG has an Altman-Z score of 2.19. 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 (2.19) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.49 indicates that CVLG is not too dependend on debt financing.
CVLG has a Debt to Equity ratio of 0.49. This is comparable 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 | 2.19 |
ROIC/WACC0.36
WACC9.09%
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.
A Quick Ratio of 0.98 indicates that CVLG may have some problems paying its short term obligations.
CVLG's Quick ratio of 0.98 is on the low side compared to the rest of the industry. CVLG is outperformed by 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.
The Earnings Per Share has been growing by 43.91% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, CVLG will show a small growth in Earnings Per Share. The EPS will grow by 6.29% on average per year.
Based on estimates for the next years, CVLG will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y-18.14%
EPS Next 2Y3.58%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue Next Year1.38%
Revenue Next 2Y3.63%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.12, which indicates a correct valuation of CVLG.
Based on the Price/Earnings ratio, CVLG is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVLG to the average of the S&P500 Index (26.60), we can say CVLG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.52, which indicates a very decent valuation of CVLG.
CVLG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVLG is cheaper than 97.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. CVLG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
90.48% 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 | 6.53 |
4.3 Compensation for Growth
The decent profitability rating of CVLG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y3.58%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, CVLG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.74, CVLG pays a bit more dividend than its industry peers.
CVLG's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 2Y3.58%
EPS Next 3Y6.29%
22.3
+0.26 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners68.78%
Inst Owner ChangeN/A
Ins Owners27.43%
Ins Owner Change0.15%
Market Cap558.62M
Revenue(TTM)1.15B
Net Income(TTM)32.22M
Analysts82
Price Target31.62 (41.79%)
Short Float %3.07%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP21.3%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.47%
Min EPS beat(2)-4.14%
Max EPS beat(2)3.2%
EPS beat(4)1
Avg EPS beat(4)-2.3%
Min EPS beat(4)-5.65%
Max EPS beat(4)3.2%
EPS beat(8)4
Avg EPS beat(8)-0.04%
EPS beat(12)6
Avg EPS beat(12)1.31%
EPS beat(16)10
Avg EPS beat(16)6.26%
Revenue beat(2)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)3.33%
Revenue beat(4)1
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)3.33%
Revenue beat(8)2
Avg Revenue beat(8)-1.96%
Revenue beat(12)3
Avg Revenue beat(12)-1.58%
Revenue beat(16)7
Avg Revenue beat(16)0.44%
PT rev (1m)4.49%
PT rev (3m)-3.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 5.08 | ||
| P/B | 1.32 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)1.7
EY7.62%
EPS(NY)2.12
Fwd EY9.5%
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)4.39
OCFY19.7%
SpS45.77
BVpS16.91
TBVpS10.03
PEG (NY)N/A
PEG (5Y)0.3
Graham Number25.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 7.6% | ||
| ROCE | 4.29% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 4.15% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.81% | ||
| GM | 66.86% | ||
| FCFM | N/A |
ROA(3y)7.68%
ROA(5y)5.21%
ROE(3y)16.9%
ROE(5y)10.67%
ROIC(3y)6.14%
ROIC(5y)5.88%
ROICexc(3y)6.59%
ROICexc(5y)6.19%
ROICexgc(3y)8.26%
ROICexgc(5y)7.51%
ROCE(3y)8.04%
ROCE(5y)7.71%
ROICexgc growth 3Y-19.39%
ROICexgc growth 5Y45.18%
ROICexc growth 3Y-22.28%
ROICexc growth 5Y41.41%
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%
F-Score6
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 156.23% | ||
| Cap/Sales | 12.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.19 |
F-Score6
WACC9.09%
ROIC/WACC0.36
Cap/Depr(3y)220.86%
Cap/Depr(5y)174.34%
Cap/Sales(3y)13.83%
Cap/Sales(5y)11.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.84%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-19.27%
EPS Next Y-18.14%
EPS Next 2Y3.58%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue 1Y (TTM)1.62%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%3.13%
Revenue Next Year1.38%
Revenue Next 2Y3.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-31.2%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year85.29%
EBIT Next 3Y31.68%
EBIT Next 5YN/A
FCF growth 1Y49.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.74%
OCF growth 3Y18.84%
OCF growth 5Y13.93%
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 -18.14% 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%.