Covenant Logistics Group, Inc.
Covenant Logistics Group, Inc. Fundamental Analysis
Covenant Logistics Group, Inc. (CVLG) shows weak financial fundamentals with a PE ratio of 85.30, profit margin of 0.62%, and ROE of 1.72%. The company generates $1.2B in annual revenue with weak year-over-year growth of 2.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CVLG's fundamental strength across five key dimensions:
Efficiency Score
WeakCVLG struggles to generate sufficient returns from assets.
Valuation Score
ModerateCVLG shows balanced valuation metrics.
Growth Score
WeakCVLG faces weak or negative growth trends.
Financial Health Score
ExcellentCVLG maintains a strong and stable balance sheet.
Profitability Score
ModerateCVLG maintains healthy but balanced margins.
Key Financial Metrics
Is CVLG Expensive or Cheap?
P/E Ratio
CVLG trades at 85.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CVLG's PEG of -1.07 indicates potential undervaluation.
Price to Book
The market values Covenant Logistics Group, Inc. at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.94 times EBITDA. This is generally considered low.
How Well Does CVLG Make Money?
Net Profit Margin
For every $100 in sales, Covenant Logistics Group, Inc. keeps $0.62 as profit after all expenses.
Operating Margin
Core operations generate 1.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.72 in profit for every $100 of shareholder equity.
ROA
Covenant Logistics Group, Inc. generates $0.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Covenant Logistics Group, Inc. generates limited operating cash flow of $114.09M, signaling weaker underlying cash strength.
Free Cash Flow
Covenant Logistics Group, Inc. produces free cash flow of $114.09M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.54 in free cash annually.
FCF Yield
CVLG converts 18.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
85.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CVLG Stacks Against Its Sector Peers
| Metric | CVLG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 85.30 | 25.83 | Worse (Expensive) |
| ROE | 1.72% | 1291.00% | Weak |
| Net Margin | 0.62% | -43845.00% (disorted) | Weak |
| Debt/Equity | 0.84 | 0.80 | Neutral |
| Current Ratio | 1.11 | 10.66 | Neutral |
| ROA | 0.66% | -1540652.00% (disorted) | Weak |
CVLG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Covenant Logistics Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
493.89%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
168.99%
Industry Style: Cyclical, Value, Infrastructure
High Growth