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 has a valuation in line with the averages, 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 each of the past 5 years.

1.2 Ratios

CVLG has a better Return On Assets (3.14%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for CVLG is in line with the industry average of 6.93%.

		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

CVLG's Profit Margin of 2.81% is in line compared to the rest of the industry. CVLG outperforms 59.52% of its industry peers.
CVLG's Profit Margin has improved in the last couple of years.
CVLG has a Operating Margin (3.12%) which is comparable to the rest of the 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.
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	3.12%
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.
Compared to 1 year ago, CVLG has more shares outstanding
CVLG has less shares outstanding than it did 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 2.32. 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 of 2.32. This is comparable to the rest of the industry: CVLG outperforms 52.38% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that CVLG is not too dependend on debt financing.
CVLG's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. CVLG outperforms 47.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.49
Debt/FCF	N/A
Altman-Z	2.32

ROIC/WACC0.36

WACC9.22%

2.3 Liquidity

A Current Ratio of 1.01 indicates that CVLG should not have too much problems paying its short term obligations.
CVLG has a Current ratio of 1.01. This is in the lower half of the industry: CVLG underperforms 61.90% of its industry peers.
A Quick Ratio of 0.98 indicates that CVLG may have some problems paying its short term obligations.
CVLG has a Quick ratio of 0.98. This is in the lower half of the industry: CVLG underperforms 64.29% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	0.98

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CVLG have decreased strongly by -15.84% 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.
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 small growth in Earnings Per Share. The EPS will grow by 6.29% on average per year.
CVLG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.

EPS Next Y-18.79%

EPS Next 2Y2.14%

EPS Next 3Y6.29%

EPS Next 5YN/A

Revenue Next Year1.38%

Revenue Next 2Y3.63%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CVLG is valuated correctly with a Price/Earnings ratio of 15.64.
Based on the Price/Earnings ratio, CVLG is valued cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. CVLG is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.91 indicates a correct valuation of CVLG.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaper than 97.62% of the companies in the same industry.
CVLG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	15.64
Fwd PE	12.91

4.2 Price Multiples

CVLG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVLG is cheaper than 88.10% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.53

4.3 Compensation for Growth

The decent profitability rating of CVLG may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)0.36

EPS Next 2Y2.14%

EPS Next 3Y6.29%

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5. Dividend

5.1 Amount

CVLG has a Yearly Dividend Yield of 1.07%.
CVLG's Dividend Yield is a higher than the industry average which is at 0.70.
Compared to an average S&P500 Dividend Yield of 1.82, CVLG's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1.07%

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 2Y2.14%

EPS Next 3Y6.29%

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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 5 / 10 to COVENANT LOGISTICS GROUP INC (CVLG). This can be considered as Fairly Valued.

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 decline by -18.79% 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%.