Covenant Logistics Group Inc
NASDAQ:CVLG
Intrinsic Value
Covenant Logistics Group, Inc. is a holding company, which engages in the provision of freight and logistics services. [ Read More ]
The intrinsic value of one CVLG stock under the Base Case scenario is 59.69 USD. Compared to the current market price of 46.36 USD, Covenant Logistics Group Inc is Undervalued by 22%.
Valuation Backtest
Covenant Logistics Group Inc
Run backtest to discover the historical profit from buying and selling CVLG stocks based on their intrinsic value.
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Fundamental Analysis
Company Outperforms in Tough Market, Stock Undervalued
2023-Q4 Earnings Call
Despite a challenging market, the company has been resilient, notably in its Dedicated and Warehousing operations, avoiding rate decreases unlike the broader market. They reduced their trucking fleet's average age from 29 to 19 months, overhauling more than half the fleet, which will lower 2024's maintenance CapEx to $40-45 million on $140 million EBITDA. This will generate considerable free cash flow, enabling debt repayment or other investment activities, such as stock repurchases, M&A, or dividends. The stock trades at an 11x multiple, a considerable discount to the 18-20x industry average, but the company sees growth opportunities, particularly in the non-commoditized Lew Thompson poultry business.
Balance Sheet Decomposition
Covenant Logistics Group Inc
Current Assets | 185.9m |
Cash & Short-Term Investments | 2.3m |
Receivables | 153.6m |
Other Current Assets | 30m |
Non-Current Assets | 768.5m |
Long-Term Investments | 66.3m |
PP&E | 514.7m |
Intangibles | 175.4m |
Other Non-Current Assets | 12.1m |
Current Liabilities | 170.3m |
Accounts Payable | 33.2m |
Accrued Liabilities | 88.7m |
Other Current Liabilities | 48.4m |
Non-Current Liabilities | 380.7m |
Long-Term Debt | 202.2m |
Other Non-Current Liabilities | 178.5m |
Earnings Waterfall
Covenant Logistics Group Inc
Revenue
|
1.1B
USD
|
Cost of Revenue
|
-405.2m
USD
|
Gross Profit
|
698.4m
USD
|
Operating Expenses
|
-652.2m
USD
|
Operating Income
|
46.2m
USD
|
Other Expenses
|
9m
USD
|
Net Income
|
55.2m
USD
|
Free Cash Flow Analysis
Covenant Logistics Group Inc
What is Free Cash Flow?
CVLG Profitability Score
Profitability Due Diligence
Covenant Logistics Group Inc's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
Score
Covenant Logistics Group Inc's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
CVLG Solvency Score
Solvency Due Diligence
Covenant Logistics Group Inc's solvency score is 47/100. The higher the solvency score, the more solvent the company is.
Score
Covenant Logistics Group Inc's solvency score is 47/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
CVLG Price Targets Summary
Covenant Logistics Group Inc
According to Wall Street analysts, the average 1-year price target for CVLG is 69.36 USD with a low forecast of 66.66 USD and a high forecast of 73.5 USD.
Ownership
CVLG Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
CVLG Price
Covenant Logistics Group Inc
Average Annual Return | 23.47% |
Standard Deviation of Annual Returns | 45.5% |
Max Drawdown | -68% |
Market Capitalization | 606m USD |
Shares Outstanding | 13 070 000 |
Percentage of Shares Shorted | 1.12% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Covenant Logistics Group, Inc. is a holding company, which engages in the provision of freight and logistics services. The company is headquartered in Chattanooga, Tennessee and currently employs 4,500 full-time employees. The firm's segments include Expedited, Dedicated, Managed Freight business and Warehousing. The Expedited business operates primarily provides truckload services to customers with high service freight and delivery standards. The Dedicated business provides customers with committed truckload capacity over contracted periods. The Managed Freight business includes brokerage services and transportation management services (TMS). The Brokerage services provide logistics capacity by outsourcing the carriage of customers' freight to third parties. The Warehousing segment provides day-to-day warehouse management services to customers. The firm also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses.
Contact
IPO
Employees
Officers
The intrinsic value of one CVLG stock under the Base Case scenario is 59.69 USD.
Compared to the current market price of 46.36 USD, Covenant Logistics Group Inc is Undervalued by 22%.