COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
NYSE:CVLG - New York Stock Exchange, Inc. - US22284P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CVLG. CVLG was compared to 40 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.
In the past year CVLG had a positive cash flow from operations.
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
CVLG has a Return On Assets of 3.93%. This is comparable to the rest of the industry: CVLG outperforms 55.00% of its industry peers.
With a Return On Equity value of 8.68%, CVLG perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
With a Return On Invested Capital value of 4.61%, CVLG perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVLG is below the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 8.68% | ||
| ROIC | 4.61% |
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 3.43%, CVLG perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
In the last couple of years the Profit Margin of CVLG has grown nicely.
CVLG has a Operating Margin of 4.39%. This is comparable to the rest of the industry: CVLG outperforms 50.00% of its industry peers.
CVLG's Operating Margin has improved in the last couple of years.
The Gross Margin of CVLG (68.13%) is better than 80.00% of its industry peers.
CVLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 3.43% | ||
| GM | 68.13% |
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
CVLG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.48. 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 (2.48) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that CVLG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, CVLG is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.48 |
ROIC/WACC0.54
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CVLG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, CVLG perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that CVLG should not have too much problems paying 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
The earnings per share for CVLG have decreased by -8.76% 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.
The Revenue has been growing slightly by 0.59% in the past year.
Measured over the past years, CVLG shows a small growth in Revenue. The Revenue has been growing by 5.03% on average per year.
EPS 1Y (TTM)-8.76%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%-3.37%
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 11.74% on average per year.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y-8.72%
EPS Next 2Y11.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.09%
Revenue Next 2Y2.88%
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 13.41, CVLG is valued correctly.
90.00% of the companies in the same industry are more expensive than CVLG, based on the Price/Earnings ratio.
CVLG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.23, the valuation of CVLG can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaper than 95.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVLG to the average of the S&P500 Index (21.76), we can say CVLG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y11.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, CVLG has a reasonable but not impressive dividend return.
CVLG's Dividend Yield is a higher than the industry average which is at 1.47.
With a Dividend Yield of 1.39, CVLG pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
CVLG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
16.13% of the earnings are spent on dividend by CVLG. This is a low number and sustainable payout ratio.
DP16.13%
EPS Next 2Y11.74%
EPS Next 3YN/A
25.22
-0.59 (-2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners67.06%
Inst Owner ChangeN/A
Ins Owners25.65%
Ins Owner Change-0.18%
Market Cap669.84M
Analysts82
Price Target32.64 (29.42%)
Short Float %2.41%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP16.13%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-5.65%
Max EPS beat(2)-2.62%
EPS beat(4)1
Avg EPS beat(4)-1.7%
Min EPS beat(4)-5.65%
Max EPS beat(4)4.31%
EPS beat(8)4
Avg EPS beat(8)1.1%
EPS beat(12)7
Avg EPS beat(12)4%
EPS beat(16)10
Avg EPS beat(16)8.62%
Revenue beat(2)0
Avg Revenue beat(2)-5.12%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)-4.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.95%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)-3.68%
Revenue beat(8)1
Avg Revenue beat(8)-2.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)1.19%
PT rev (1m)0%
PT rev (3m)-9.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.23 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | 5.32 | ||
| P/B | 1.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)1.88
EY7.45%
EPS(NY)2.47
Fwd EY9.78%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)4.74
OCFY18.81%
SpS42.25
BVpS16.7
TBVpS10.04
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 8.68% | ||
| ROCE | 6.04% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 6% | ||
| OM | 4.39% | ||
| PM (TTM) | 3.43% | ||
| GM | 68.13% | ||
| 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%
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 158.26% | ||
| Cap/Sales | 12.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.48 |
F-Score6
WACC8.5%
ROIC/WACC0.54
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)-8.76%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-23.81%
EPS Next Y-8.72%
EPS Next 2Y11.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.59%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%-3.37%
Revenue Next Year-0.09%
Revenue Next 2Y2.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.52%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year115.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-162.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.82%
OCF growth 3Y18.84%
OCF growth 5Y13.93%