Is Covenant Logistics Group, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Covenant Logistics Group, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA of 6.13, and a Price to Book Value of 1.36, which suggest that the stock is trading at a reasonable valuation compared to its earnings and assets.
In comparison to its peers, Covenant Logistics has a P/E ratio of 15.96, which is significantly lower than Marten Transport Ltd.'s P/E of 48.87, indicating that Covenant is more attractively priced relative to its earnings potential. Additionally, Universal Logistics Holdings, Inc. also shows an attractive valuation with a P/E of 8.62, further supporting the notion that Covenant is undervalued in its sector. Notably, while the company has faced challenges with a year-to-date return of -14.07%, its long-term performance over three years shows a robust increase of 106.98%, highlighting its potential for recovery and growth.