COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - NYSE:CVLG - US22284P1057 - Common Stock
23.54 USD
+0.16 (+0.68%)
23.54 USD
0 (0%)
Overall CVLG gets a fundamental rating of 5 out of 10. We evaluated CVLG against 42 industry peers in the Ground Transportation industry. Both the profitability and the financial health of CVLG get a neutral evaluation. Nothing too spectacular is happening here. CVLG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CVLG had positive earnings in the past year.
CVLG had a positive operating cash flow in the past year.
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
CVLG's Return On Assets of 3.58% is fine compared to the rest of the industry. CVLG outperforms 61.90% of its industry peers.
With a Return On Equity value of 8.67%, CVLG perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
The Return On Invested Capital of CVLG (4.11%) 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 7.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.67% | ||
| ROIC | 4.11% |
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's Profit Margin of 3.18% is in line compared to the rest of the industry. CVLG outperforms 54.76% of its industry peers.
In the last couple of years the Profit Margin of CVLG has grown nicely.
Looking at the Operating Margin, with a value of 3.93%, CVLG is in line with its industry, outperforming 52.38% of the companies in the same industry.
CVLG's Operating Margin has improved in the last couple of years.
CVLG's Gross Margin of 67.43% is amongst the best of the industry. CVLG outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of CVLG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 3.18% | ||
| GM | 67.43% |
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.
Compared to 1 year ago, CVLG has more shares outstanding
CVLG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVLG has an improved debt to assets ratio.
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's Altman-Z score of 2.29 is in line compared to the rest of the industry. CVLG outperforms 57.14% of its industry peers.
CVLG has a debt to FCF ratio of 169.20. This is a negative value and a sign of low solvency as CVLG would need 169.20 years to pay back of all of its debts.
The Debt to FCF ratio of CVLG (169.20) is comparable to the rest of the industry.
CVLG has a Debt/Equity ratio of 0.52. This is a neutral value indicating CVLG is somewhat dependend on debt financing.
CVLG's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. CVLG outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.5
WACC8.3%
2.3 Liquidity
CVLG has a Current Ratio of 1.09. 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 (1.09) which is in line with its industry peers.
CVLG has a Quick Ratio of 1.06. 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 Quick ratio (1.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for CVLG have decreased strongly by -11.52% in the last year.
CVLG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.91% yearly.
CVLG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)-11.52%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-13.46%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%5.34%
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 12.31% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-9.49%
EPS Next 2Y12.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y3.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 13.01, CVLG is valued correctly.
Based on the Price/Earnings ratio, CVLG is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, CVLG is valued rather cheaply.
CVLG is valuated reasonably with a Price/Forward Earnings ratio of 9.45.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaper than 97.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. CVLG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaper than 85.71% of the companies in the same industry.
CVLG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 368.34 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The decent profitability rating of CVLG may justify a higher PE ratio.
A more expensive valuation may be justified as CVLG's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y12.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 1.59, CVLG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
18.14% of the earnings are spent on dividend by CVLG. This is a low number and sustainable payout ratio.
DP18.14%
EPS Next 2Y12.31%
EPS Next 3YN/A
23.54
+0.16 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners66.85%
Inst Owner ChangeN/A
Ins Owners25.68%
Ins Owner Change0.99%
Market Cap588.97M
Analysts82
Price Target32.64 (38.66%)
Short Float %3.11%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP18.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-5.65%
Max EPS beat(2)3.2%
EPS beat(4)1
Avg EPS beat(4)-1.98%
Min EPS beat(4)-5.65%
Max EPS beat(4)3.2%
EPS beat(8)4
Avg EPS beat(8)0.2%
EPS beat(12)7
Avg EPS beat(12)2.42%
EPS beat(16)10
Avg EPS beat(16)6.42%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)3.33%
Revenue beat(4)1
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)3.33%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)-3.03%
PT rev (3m)0%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 9.45 | ||
| P/S | 0.52 | ||
| P/FCF | 368.34 | ||
| P/OCF | 4.69 | ||
| P/B | 1.41 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)1.81
EY7.69%
EPS(NY)2.49
Fwd EY10.58%
FCF(TTM)0.06
FCFY0.27%
OCF(TTM)5.02
OCFY21.31%
SpS45.46
BVpS16.66
TBVpS9.66
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.67% | ||
| ROCE | 5.4% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 5.21% | ||
| OM | 3.93% | ||
| PM (TTM) | 3.18% | ||
| GM | 67.43% | ||
| FCFM | 0.14% |
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%
ROICexcg growth 3Y-19.39%
ROICexcg 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 Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 140.5% | ||
| Cap/Sales | 10.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.41% | ||
| Profit Quality | 4.42% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.29 |
F-Score6
WACC8.3%
ROIC/WACC0.5
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)-11.52%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-13.46%
EPS Next Y-9.49%
EPS Next 2Y12.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%5.34%
Revenue Next Year1.2%
Revenue Next 2Y3.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.59%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year103.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y104.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.56%
OCF growth 3Y18.84%
OCF growth 5Y13.93%