COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
NYSE:CVLG - New York Stock Exchange, Inc. - US22284P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVLG. CVLG was compared to 41 industry peers in the Ground Transportation industry. CVLG has only an average score on both its financial health and profitability. CVLG is not valued too expensively and it also shows a decent growth rate.
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 (3.60%) which is comparable to the rest of the industry.
CVLG's Return On Equity of 8.19% is fine compared to the rest of the industry. CVLG outperforms 60.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.34%, CVLG is in line with its industry, outperforming 53.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CVLG is in line with the industry average of 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 8.19% | ||
| ROIC | 4.34% |
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 3.17% is in line compared to the rest of the industry. CVLG outperforms 56.10% of its industry peers.
CVLG's Profit Margin has improved in the last couple of years.
CVLG has a Operating Margin (4.10%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVLG has grown nicely.
CVLG has a Gross Margin of 67.27%. This is in the better half of the industry: CVLG outperforms 78.05% 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 | 4.1% | ||
| PM (TTM) | 3.17% | ||
| GM | 67.27% |
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
CVLG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CVLG has been increased compared to 1 year ago.
The number of shares outstanding for CVLG has been reduced compared to 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 2.28. 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.
Looking at the Altman-Z score, with a value of 2.28, CVLG is in line with its industry, outperforming 53.66% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that CVLG is not too dependend on debt financing.
CVLG has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.28 |
ROIC/WACC0.55
WACC7.84%
2.3 Liquidity
CVLG has a Current Ratio of 1.18. This is a normal value and indicates that CVLG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CVLG (1.18) is better than 60.98% of its industry peers.
CVLG has a Quick Ratio of 1.15. 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 better Quick ratio (1.15) than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for CVLG have decreased strongly by -54.38% in the last year.
CVLG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.20% yearly.
The Revenue has been growing slightly by 0.59% in the past year.
The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)-54.38%
EPS 3Y-12.78%
EPS 5Y30.2%
EPS Q2Q%-61.9%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%-3.37%
3.2 Future
The Earnings Per Share is expected to grow by 2.77% on average over the next years.
Based on estimates for the next years, CVLG will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
EPS Next Y-18.87%
EPS Next 2Y2.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.07%
Revenue Next 2Y4.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.11, the valuation of CVLG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CVLG indicates a rather cheap valuation: CVLG is cheaper than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, CVLG is valued rather cheaply.
CVLG is valuated reasonably with a Price/Forward Earnings ratio of 8.26.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
CVLG is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
The decent profitability rating of CVLG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y2.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CVLG has falen by -24.61%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.71, CVLG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CVLG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 16.14% of its income as dividend. This is a sustainable payout ratio.
DP16.14%
EPS Next 2Y2.77%
EPS Next 3YN/A
20.89
+1.08 (+5.45%)
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-2.81%
Market Cap554.84M
Analysts82
Price Target33.32 (59.5%)
Short Float %0.78%
Short Ratio1.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP16.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.74%
Min EPS beat(2)-2.85%
Max EPS beat(2)-2.62%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-2.85%
Max EPS beat(4)5.58%
EPS beat(8)5
Avg EPS beat(8)3.42%
EPS beat(12)8
Avg EPS beat(12)8.89%
EPS beat(16)11
Avg EPS beat(16)12.34%
Revenue beat(2)0
Avg Revenue beat(2)-5.21%
Min Revenue beat(2)-5.86%
Max Revenue beat(2)-4.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.53%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.86%
Revenue beat(12)5
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)1.86%
PT rev (1m)-7.55%
PT rev (3m)-53.33%
EPS NQ rev (1m)-19.39%
EPS NQ rev (3m)-67.24%
EPS NY rev (1m)-13.11%
EPS NY rev (3m)-60.67%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 8.26 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 4.51 | ||
| P/B | 1.27 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)1.88
EY9%
EPS(NY)2.53
Fwd EY12.11%
FCF(TTM)-1.13
FCFYN/A
OCF(TTM)4.63
OCFY22.15%
SpS42.6
BVpS16.5
TBVpS10.14
PEG (NY)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 8.19% | ||
| ROCE | 5.68% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 5.79% | ||
| OM | 4.1% | ||
| PM (TTM) | 3.17% | ||
| GM | 67.27% | ||
| 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 Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 176.78% | ||
| Cap/Sales | 13.52% | ||
| Interest Coverage | 8.18 | ||
| Cash Conversion | 92.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.28 |
F-Score6
WACC7.84%
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)-54.38%
EPS 3Y-12.78%
EPS 5Y30.2%
EPS Q2Q%-61.9%
EPS Next Y-18.87%
EPS Next 2Y2.77%
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 Year2.07%
Revenue Next 2Y4.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.33%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year138.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y77.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.85%
OCF growth 3Y18.84%
OCF growth 5Y13.93%