COVENANT LOGISTICS GROUP INC (CVLG) Stock Fundamental Analysis
USA - NYSE:CVLG - US22284P1057 - Common Stock
20.54 USD
-1.02 (-4.73%)
20.54 USD
0 (0%)
CVLG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. CVLG has an average financial health and profitability rating. CVLG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CVLG was profitable.
In the past year CVLG had a positive cash flow from operations.
Of the past 5 years CVLG 4 years were profitable.
In the past 5 years CVLG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.58%, CVLG is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Return On Equity of CVLG (8.67%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.11%, CVLG is in line with its industry, outperforming 59.52% 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 7.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.67% | ||
| ROIC | 4.11% |
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
Looking at the Profit Margin, with a value of 3.18%, CVLG is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Profit Margin of CVLG has grown nicely.
CVLG has a Operating Margin of 3.93%. This is comparable to the rest of the industry: CVLG outperforms 54.76% of its industry peers.
In the last couple of years the Operating Margin of CVLG has grown nicely.
With an excellent Gross Margin value of 67.43%, CVLG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
CVLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 3.18% | ||
| GM | 67.43% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVLG is destroying value.
The number of shares outstanding for CVLG has been increased compared to 1 year ago.
Compared to 5 years ago, CVLG has less shares outstanding
Compared to 1 year ago, CVLG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that CVLG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.24, CVLG is in line with its industry, outperforming 50.00% of the companies in the same industry.
CVLG has a debt to FCF ratio of 169.20. This is a negative value and a sign of low solvency as CVLG would need 169.20 years to pay back of all of its debts.
With a Debt to FCF ratio value of 169.20, CVLG perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that CVLG is somewhat dependend on debt financing.
The Debt to Equity ratio of CVLG (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.51
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CVLG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, CVLG perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
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.
With a Quick ratio value of 1.06, CVLG perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
CVLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.52%.
CVLG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.91% yearly.
The Revenue has been growing slightly by 0.75% in the past 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)-11.52%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-13.46%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%5.34%
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 10.17% yearly.
CVLG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y-9.45%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CVLG is valuated reasonably with a Price/Earnings ratio of 11.35.
Based on the Price/Earnings ratio, CVLG is valued cheaper than 92.86% of the companies in the same industry.
CVLG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
With a Price/Forward Earnings ratio of 8.57, the valuation of CVLG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CVLG is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.57. CVLG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVLG is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVLG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 321.39 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
CVLG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y10.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVLG has a Yearly Dividend Yield of 1.33%. 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 1.66.
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 | 1.33% |
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 18.14% of its income as dividend. This is a sustainable payout ratio.
DP18.14%
EPS Next 2Y10.17%
EPS Next 3YN/A
20.54
-1.02 (-4.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners70.99%
Inst Owner ChangeN/A
Ins Owners27.56%
Ins Owner Change0.99%
Market Cap513.91M
Analysts80
Price Target32.13 (56.43%)
Short Float %3.59%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP18.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-5.65%
Max EPS beat(2)3.2%
EPS beat(4)1
Avg EPS beat(4)-1.98%
Min EPS beat(4)-5.65%
Max EPS beat(4)3.2%
EPS beat(8)4
Avg EPS beat(8)0.2%
EPS beat(12)7
Avg EPS beat(12)2.42%
EPS beat(16)10
Avg EPS beat(16)6.42%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)3.33%
Revenue beat(4)1
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)3.33%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)-4.55%
PT rev (3m)-1.56%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.45 | ||
| P/FCF | 321.39 | ||
| P/OCF | 4.09 | ||
| P/B | 1.23 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)1.81
EY8.81%
EPS(NY)2.4
Fwd EY11.67%
FCF(TTM)0.06
FCFY0.31%
OCF(TTM)5.02
OCFY24.43%
SpS45.46
BVpS16.66
TBVpS9.66
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.67% | ||
| ROCE | 5.4% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 5.21% | ||
| OM | 3.93% | ||
| PM (TTM) | 3.18% | ||
| GM | 67.43% | ||
| FCFM | 0.14% |
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 | 0.52 | ||
| Debt/FCF | 169.2 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 140.5% | ||
| Cap/Sales | 10.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.41% | ||
| Profit Quality | 4.42% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.24 |
F-Score6
WACC7.98%
ROIC/WACC0.51
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)-11.52%
EPS 3Y3.05%
EPS 5Y43.91%
EPS Q2Q%-13.46%
EPS Next Y-9.45%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.75%
Revenue growth 3Y2.65%
Revenue growth 5Y5.03%
Sales Q2Q%5.34%
Revenue Next Year1.2%
Revenue Next 2Y3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.59%
EBIT growth 3Y-9.87%
EBIT growth 5Y45.48%
EBIT Next Year111.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y104.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.56%
OCF growth 3Y18.84%
OCF growth 5Y13.93%