COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - NYSE:CVLG - US22284P1057 - Common Stock
19.58 USD
+0.17 (+0.88%)
19.58 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CVLG. CVLG was compared to 43 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CVLG.
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.
In the past 5 years CVLG always reported a positive cash flow from operatings.
1.2 Ratios
CVLG's Return On Assets of 3.58% is fine compared to the rest of the industry. CVLG outperforms 65.12% of its industry peers.
The Return On Equity of CVLG (8.67%) is comparable to the rest of the industry.
CVLG has a better Return On Invested Capital (4.11%) than 60.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVLG is in line with the industry average of 7.65%.
| 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
With a Profit Margin value of 3.18%, CVLG perfoms like the industry average, outperforming 58.14% 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 3.93%. This is comparable to the rest of the industry: CVLG outperforms 55.81% of its industry peers.
CVLG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.43%, CVLG belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVLG is destroying value.
Compared to 1 year ago, CVLG has more shares outstanding
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
An Altman-Z score of 2.19 indicates that CVLG is not a great score, but indicates 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.
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.
With a decent Debt to FCF ratio value of 169.20, CVLG is doing good in the industry, outperforming 60.47% of the companies in the same 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 41.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.51
WACC8.1%
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 55.81% 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.
CVLG has a Quick ratio (1.06) which is in line with its industry peers.
| 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 -15.84%.
The Earnings Per Share has been growing by 43.91% on average over the past years. This is a very strong growth
Looking at the last year, CVLG shows a small growth in Revenue. The Revenue has grown by 1.62% in the last 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)-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 quite strong growth in Earnings Per Share. The EPS will grow by 12.41% on average per year.
CVLG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y-12.37%
EPS Next 2Y4.14%
EPS Next 3Y12.41%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y3.55%
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
The Price/Earnings ratio is 11.52, which indicates a very decent valuation of CVLG.
CVLG's Price/Earnings ratio is rather cheap when compared to the industry. CVLG is cheaper than 93.02% of the companies in the same industry.
CVLG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 9.14, the valuation of CVLG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVLG indicates a rather cheap valuation: CVLG is cheaper than 95.35% of the companies listed in the same industry.
CVLG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
CVLG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVLG is cheaper than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 306.37 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
CVLG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CVLG's earnings are expected to grow with 12.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y4.14%
EPS Next 3Y12.41%
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.70, CVLG pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.41, CVLG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 2Y4.14%
EPS Next 3Y12.41%
19.58
+0.17 (+0.88%)
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 Cap489.89M
Revenue(TTM)1.15B
Net Income(TTM)36.16M
Analysts80
Price Target30.26 (54.55%)
Short Float %3.23%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)-7.29%
PT rev (3m)-9.18%
EPS NQ rev (1m)-4.93%
EPS NQ rev (3m)-5.76%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.43 | ||
| P/FCF | 306.37 | ||
| P/OCF | 3.9 | ||
| P/B | 1.18 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)1.7
EY8.68%
EPS(NY)2.14
Fwd EY10.94%
FCF(TTM)0.06
FCFY0.33%
OCF(TTM)5.02
OCFY25.62%
SpS45.46
BVpS16.66
TBVpS9.66
PEG (NY)N/A
PEG (5Y)0.26
Graham Number25.24
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%
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 Turnover1.13
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 | 2.19 |
F-Score6
WACC8.1%
ROIC/WACC0.51
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-12.37%
EPS Next 2Y4.14%
EPS Next 3Y12.41%
EPS Next 5YN/A
Revenue 1Y (TTM)1.62%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%3.13%
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%
COVENANT LOGISTICS GROUP INC / CVLG FAQ
Can you provide the ChartMill fundamental rating for COVENANT LOGISTICS GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to CVLG.
Can you provide the valuation status for COVENANT LOGISTICS GROUP INC?
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 are the PE and PB ratios of COVENANT LOGISTICS GROUP INC (CVLG) stock?
The Price/Earnings (PE) ratio for COVENANT LOGISTICS GROUP INC (CVLG) is 11.52 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for CVLG stock?
The financial health rating of COVENANT LOGISTICS GROUP INC (CVLG) is 4 / 10.