COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - NYSE:CVLG - US22284P1057 - Common Stock
21.87 USD
+0.2 (+0.92%)
Overall CVLG gets a fundamental rating of 5 out of 10. We evaluated CVLG against 42 industry peers in the Ground Transportation industry. CVLG has an average financial health and profitability rating. CVLG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CVLG was profitable.
CVLG had a positive operating cash flow in the past year.
Of the past 5 years CVLG 4 years were profitable.
Each year in the past 5 years CVLG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.58%, CVLG is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
CVLG has a Return On Equity (8.67%) which is in line with its industry peers.
CVLG's Return On Invested Capital of 4.11% is in line compared to the rest of the industry. CVLG outperforms 59.52% 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 7.76%.
| 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
The Profit Margin of CVLG (3.18%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CVLG has grown nicely.
CVLG has a Operating Margin (3.93%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVLG has grown nicely.
The Gross Margin of CVLG (67.43%) is better than 80.95% of its industry peers.
CVLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| 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
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.
The number of shares outstanding for CVLG has been reduced compared to 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 2.25. 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.
Looking at the Altman-Z score, with a value of 2.25, CVLG is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
CVLG has a Debt to FCF ratio of 169.20. This is comparable to the rest of the industry: CVLG outperforms 59.52% of its industry peers.
CVLG has a Debt/Equity ratio of 0.52. This is a neutral value indicating CVLG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, CVLG perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.5
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CVLG should not have too much problems paying its short term obligations.
The Current ratio of CVLG (1.09) is comparable to the rest of the industry.
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.
The Quick ratio of CVLG (1.06) 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
CVLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.52%.
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.
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
CVLG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.17% yearly.
The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y-9.45%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 12.08, the valuation of CVLG can be described as correct.
Based on the Price/Earnings ratio, CVLG is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CVLG to the average of the S&P500 Index (27.69), we can say CVLG is valued rather cheaply.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of CVLG.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. CVLG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
CVLG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 342.21 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
The decent profitability rating of CVLG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y10.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 1.60, CVLG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 18.14% of its income as dividend. This is a sustainable payout ratio.
DP18.14%
EPS Next 2Y10.17%
EPS Next 3YN/A
NYSE:CVLG (10/21/2025, 11:30:39 AM)
21.87
+0.2 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners70.99%
Inst Owner ChangeN/A
Ins Owners27.56%
Ins Owner Change0.99%
Market Cap547.19M
Analysts80
Price Target32.13 (46.91%)
Short Float %3.59%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)-1.56%
PT rev (3m)-1.56%
EPS NQ rev (1m)-5.6%
EPS NQ rev (3m)-5.76%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.48 | ||
| P/FCF | 342.21 | ||
| P/OCF | 4.36 | ||
| P/B | 1.31 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)1.81
EY8.28%
EPS(NY)2.4
Fwd EY10.96%
FCF(TTM)0.06
FCFY0.29%
OCF(TTM)5.02
OCFY22.94%
SpS45.46
BVpS16.66
TBVpS9.66
PEG (NY)N/A
PEG (5Y)0.28
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 | 2.25 |
F-Score6
WACC8.14%
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-9.45%
EPS Next 2Y10.17%
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 2Y3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.59%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year111.37%
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%