Covenant Logistics Group, Inc. (CVLG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Landstar System, Inc.

Covenant Logistics Group, Inc.

Heartland Express, Inc.

P.A.M. Transportation Services, Inc.

Schneider National, Inc.

Knight-Swift Transportation Holdings, Inc.

Werner Enterprises, Inc.

Forward Air Corp.

ArcBest Corp.

Marten Transport Ltd.

Universal Logistics Holdings, Inc.

Why is Covenant Logistics Group, Inc. ?

With a fall in Net Sales of -0.51%, the company declared Very Negative results in Dec 25

ROCE(HY) Lowest at 1.05%
INVENTORY TURNOVER RATIO(HY) Lowest at 0 times
INTEREST COVERAGE RATIO(Q) Lowest at 554.42

With ROCE of 2.00%, it has a attractive valuation with a 1.32 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 16.02%, its profits have fallen by -57.2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Covenant Logistics Group, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Covenant Logistics Group, Inc.

66.67%

0.21

43.26%

S&P 500

27.93%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.72%

EBIT Growth (5y)

-2.64%

EBIT to Interest (avg)

12.37

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

1.66

Tax Ratio

23.53%

Dividend Payout Ratio

104.09%

Pledged Shares

Institutional Holding

77.46%

ROCE (avg)

10.67%

ROE (avg)

15.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.55

EV to EBIT

66.05

EV to EBITDA

8.15

EV to Capital Employed

1.32

EV to Sales

0.79

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

2.00%

ROE (Latest)

3.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 41.87%

NET SALES(Q)

Highest at USD 307.16 MM

PRE-TAX PROFIT(Q)

At USD 6.08 MM has Grown at 49.38%

-16What is not working for the Company

NET PROFIT(HY)

At USD -3.14 MM has Grown at -123.9%

ROCE(HY)

Lowest at 0.53%

RAW MATERIAL COST(Y)

Grown by 16.55% (YoY

INTEREST(Q)

Highest at USD 3.89 MM

Here's what is working for Covenant Logistics Group, Inc.

Net Sales

Highest at USD 307.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 6.08 MM has Grown at 49.38%

over average net sales of the previous four periods of USD 4.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Dividend Payout Ratio

Highest at 41.87%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Covenant Logistics Group, Inc.

Net Profit

At USD -3.14 MM has Grown at -123.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 3.89 MM has Grown at 19.2%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 3.89 MM

in the last five periods and Increased by 19.2% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 16.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.55 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income