COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
NYSE:CVLG - New York Stock Exchange, Inc. - US22284P1057 - Common Stock - Currency: USD
CVLG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 39 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.
CVLG had a positive operating cash flow in the past year.
CVLG had positive earnings in 4 of the past 5 years.
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 56.41% of its industry peers.
Looking at the Return On Equity, with a value of 8.68%, CVLG is in line with its industry, outperforming 56.41% of the companies in the same industry.
With a Return On Invested Capital value of 4.61%, CVLG perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVLG is in line with the industry average of 8.06%.
| 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
The Profit Margin of CVLG (3.43%) is comparable to the rest of the industry.
CVLG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.39%, CVLG perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
CVLG's Operating Margin has improved in the last couple of years.
CVLG's Gross Margin of 68.13% is fine compared to the rest of the industry. CVLG outperforms 79.49% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVLG is destroying value.
CVLG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVLG has less shares outstanding
CVLG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that CVLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CVLG (2.41) 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.
CVLG has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.41 |
ROIC/WACC0.55
WACC8.43%
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.
Looking at the Current ratio, with a value of 1.09, CVLG is in line with its industry, outperforming 58.97% 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.
Measured over the past years, CVLG shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.91% on average per year.
The Revenue has been growing slightly by 0.59% in the past year.
CVLG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.03% yearly.
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
CVLG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.74% yearly.
CVLG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
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
The Price/Earnings ratio is 12.11, which indicates a correct valuation of CVLG.
87.18% of the companies in the same industry are more expensive than CVLG, based on the Price/Earnings ratio.
CVLG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.52.
A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of CVLG.
92.31% of the companies in the same industry are more expensive than CVLG, based on the Price/Forward Earnings ratio.
CVLG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y11.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.57%. 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 1.58.
CVLG's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 16.13% of its income as dividend. This is a sustainable payout ratio.
DP16.13%
EPS Next 2Y11.74%
EPS Next 3YN/A
22.76
-0.12 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners67.18%
Inst Owner ChangeN/A
Ins Owners25.73%
Ins Owner Change-1.05%
Market Cap604.51M
Analysts82
Price Target32.64 (43.41%)
Short Float %1.07%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-2.04%
PT rev (3m)-9.43%
EPS NQ rev (1m)1.58%
EPS NQ rev (3m)-23.21%
EPS NY rev (1m)-7.22%
EPS NY rev (3m)-19.38%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-2.11%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 9.23 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | 4.8 | ||
| P/B | 1.36 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)1.88
EY8.26%
EPS(NY)2.47
Fwd EY10.83%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)4.74
OCFY20.85%
SpS42.25
BVpS16.7
TBVpS10.04
PEG (NY)N/A
PEG (5Y)0.28
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 | 2.41 |
F-Score6
WACC8.43%
ROIC/WACC0.55
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%