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. CVLG has a medium profitability rating, but doesn't score so well on its financial health evaluation. CVLG is valued quite cheap, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 4 of the past 5 years.

1.2 Ratios

The Return On Assets of CVLG (3.14%) is better than 61.90% of its industry peers.
CVLG has a Return On Equity (7.60%) which is comparable to the rest of the industry.
The Return On Invested Capital of CVLG (3.27%) 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 6.90%.

		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

The Profit Margin of CVLG (2.81%) is comparable to the rest of the industry.
CVLG's Profit Margin has improved in the last couple of years.
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.
With an excellent Gross Margin value of 66.86%, CVLG belongs to the best 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CVLG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CVLG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 2.26 indicates that CVLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.26, CVLG perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
CVLG has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CVLG (0.49) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.49
Debt/FCF	N/A
Altman-Z	2.26

ROIC/WACC0.36

WACC9.11%

2.3 Liquidity

A Current Ratio of 1.01 indicates that CVLG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.01, CVLG is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
A Quick Ratio of 0.98 indicates that CVLG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, CVLG is doing worse than 64.29% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	0.98

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CVLG have decreased strongly by -23.04% in the last year.
CVLG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.32% yearly.

EPS 1Y (TTM)-23.04%

EPS 3Y-19.69%

EPS 5Y22.32%

EPS Q2Q%-36.73%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%6.5%

3.2 Future

The Earnings Per Share is expected to grow by 24.91% on average over the next years. This is a very strong growth
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next Y35.55%

EPS Next 2Y24.91%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year5.92%

Revenue Next 2YN/A

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 stable.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.18, CVLG is valued correctly.
Based on the Price/Earnings ratio, CVLG is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CVLG to the average of the S&P500 Index (28.32), we can say CVLG is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.94, 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.
CVLG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	16.18
Fwd PE	11.94

4.2 Price Multiples

CVLG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVLG is cheaper than 90.48% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.04

4.3 Compensation for Growth

CVLG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 24.91% in the coming years.

PEG (NY)0.46

PEG (5Y)0.72

EPS Next 2Y24.91%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

CVLG has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
CVLG's Dividend Yield is a higher than the industry average which is at 0.71.
With a Dividend Yield of 1.08, CVLG pays less dividend than the S&P500 average, which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.08%

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 2Y24.91%

EPS Next 3YN/A

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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 7 / 10 to COVENANT LOGISTICS GROUP INC (CVLG). This can be considered as Undervalued.

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 grow by 35.55% 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%.