COVENANT LOGISTICS GROUP INC (CVLG)
US22284P1057 - Common Stock
CVLG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years CVLG always reported a positive cash flow from operatings.
1.2 Ratios
CVLG has a better Return On Assets (5.78%) than 69.44% of its industry peers.
The Return On Equity of CVLG (13.68%) is better than 61.11% of its industry peers.
CVLG has a Return On Invested Capital of 4.45%. This is comparable to the rest of the industry: CVLG outperforms 44.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVLG is in line with the industry average of 7.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 13.68% | ||
| ROIC | 4.45% |
ROA(3y)9.58%
ROA(5y)4.68%
ROE(3y)19.96%
ROE(5y)9.52%
ROIC(3y)7.79%
ROIC(5y)5.12%
1.3 Margins
CVLG has a Profit Margin (5.00%) which is in line with its industry peers.
CVLG's Profit Margin has been stable in the last couple of years.
CVLG's Operating Margin of 4.18% is on the low side compared to the rest of the industry. CVLG is outperformed by 61.11% of its industry peers.
In the last couple of years the Operating Margin of CVLG has declined.
CVLG has a better Gross Margin (63.28%) than 69.44% of its industry peers.
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 | 4.18% | ||
| PM (TTM) | 5% | ||
| GM | 63.28% |
OM growth 3Y48.64%
OM growth 5Y-7.91%
PM growth 3YN/A
PM growth 5Y0.72%
GM growth 3Y-0.53%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVLG is destroying value.
The number of shares outstanding for CVLG has been reduced compared to 1 year ago.
CVLG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CVLG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.54 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 2.54, CVLG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
CVLG has a Debt/Equity ratio of 0.50. This is a neutral value indicating CVLG is somewhat dependend on debt financing.
The Debt to Equity ratio of CVLG (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.57
WACC7.87%
2.3 Liquidity
CVLG has a Current Ratio of 1.09. This is a normal value and indicates that CVLG is financially healthy and should not expect problems in meeting its short term obligations.
CVLG has a Current ratio (1.09) which is in line with its industry peers.
CVLG has a Quick Ratio of 1.06. This is a normal value and indicates that CVLG is financially healthy and should not expect problems in meeting its short term obligations.
CVLG's Quick ratio of 1.06 is in line compared to the rest of the industry. CVLG outperforms 47.22% of its industry peers.
| 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 strongly by -28.45% in the last year.
The Earnings Per Share has been growing by 12.22% on average over the past years. This is quite good.
CVLG shows a decrease in Revenue. In the last year, the revenue decreased by -9.31%.
The Revenue has been growing slightly by 4.62% on average over the past years.
EPS 1Y (TTM)-28.45%
EPS 3Y55.83%
EPS 5Y12.22%
EPS growth Q2Q-21.9%
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y9.58%
Revenue growth 5Y4.62%
Revenue growth Q2Q-7.47%
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 10.96% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y2.08%
EPS Next 2Y10.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y6.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CVLG is valuated reasonably with a Price/Earnings ratio of 10.80.
Based on the Price/Earnings ratio, CVLG is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
CVLG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.34.
The Price/Forward Earnings ratio is 10.58, which indicates a very decent valuation of CVLG.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
CVLG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.19
PEG (5Y)0.88
EPS Next 2Y10.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 1.66, CVLG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
CVLG pays out 10.47% of its income as dividend. This is a sustainable payout ratio.
DP10.47%
EPS Next 2Y10.96%
EPS Next 3YN/A
COVENANT LOGISTICS GROUP INC
NASDAQ:CVLG (4/15/2024, 10:09:07 AM)
45.36
-0.1 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap592.86M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 10.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.19
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 13.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.18% | ||
| PM (TTM) | 5% | ||
| GM | 63.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.45%
EPS 3Y55.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y9.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y