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. There are concerns on the financial health of CVLG while its profitability can be described as average. CVLG has a bad growth rate and is valued cheaply.

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.
In the past year CVLG had a positive cash flow from operations.
CVLG had positive earnings in 4 of the past 5 years.
CVLG had a positive operating cash flow in 4 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's Return On Equity of 7.60% is in line compared to the rest of the industry. CVLG outperforms 59.52% of its industry peers.
CVLG has a Return On Invested Capital of 3.27%. This is comparable to the rest of the industry: CVLG outperforms 54.76% 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 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

CVLG has a Profit Margin (2.81%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVLG has grown nicely.
CVLG has a Operating Margin (3.12%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CVLG has grown nicely.
CVLG has a Gross Margin of 66.86%. This is amongst the best in the industry. CVLG outperforms 80.95% of its industry peers.
CVLG's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	3.12%
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVLG 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 2.29 indicates that CVLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVLG has a Altman-Z score of 2.29. 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.
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	2.29

ROIC/WACC0.36

WACC9.1%

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.
CVLG has a Quick Ratio of 1.01. This is a bad value and indicates that CVLG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, CVLG is not doing good in the industry: 64.29% of the companies in the same industry are doing better.

		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 -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

Based on estimates for the next years, CVLG will show a very strong growth in Earnings Per Share. The EPS will grow by 24.91% on average per year.
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

The Price/Earnings ratio is 16.18, which indicates a correct valuation of CVLG.
CVLG's Price/Earnings ratio is rather cheap when compared to the industry. CVLG is cheaper than 88.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVLG to the average of the S&P500 Index (28.30), we can say CVLG is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of CVLG.
97.62% of the companies in the same industry are more expensive than CVLG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVLG to the average of the S&P500 Index (25.57), we can say CVLG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	16.18
Fwd PE	11.94

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVLG indicates a rather cheap valuation: CVLG is cheaper than 88.10% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.29

4.3 Compensation for Growth

The 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 1.10%. 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 0.70.
CVLG's Dividend Yield is slightly below the S&P500 average, which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	1.1%

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

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%.