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Covenant Logistics Group Inc
NASDAQ:CVLG

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Covenant Logistics Group Inc Logo
Covenant Logistics Group Inc
NASDAQ:CVLG
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Price: 46.36 USD 1% Market Closed
Updated: Mar 29, 2024

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%.

Key Points:
CVLG Intrinsic Value
Base Case
59.69 USD
Undervaluation 22%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Covenant Logistics Group Inc

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Fundamental Analysis

Company Outperforms in Tough Market, Stock Undervalued
2023-Q4 Earnings Call

Company Outperforms in Tough Market, Stock Undervalued

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
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Fundamental Scores

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.

Positive Gross Profit
ROE is Increasing
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
55/100
Profitability
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.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
47/100
Solvency
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

Wall Street analysts forecast CVLG stock price to rise over the next 12 months.

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.

Lowest
Price Target
66.66 USD
44% Upside
Average
Price Target
69.36 USD
50% Upside
Highest
Price Target
73.5 USD
59% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

CVLG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

CVLG Price
Covenant Logistics Group Inc

1M 1M
-5%
6M 6M
+6%
1Y 1Y
+34%
3Y 3Y
+138%
5Y 5Y
+148%
10Y 10Y
+365%
Annual Price Range
46.36
52w Low
33.98
52w High
56.91
Price Metrics
Average Annual Return 23.47%
Standard Deviation of Annual Returns 45.5%
Max Drawdown -68%
Shares Statistics
Market Capitalization 606m USD
Shares Outstanding 13 070 000
Percentage of Shares Shorted 1.12%

CVLG Return Decomposition
Main factors of price return

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CVLG News

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Company Profile

Covenant Logistics Group Inc Logo
Covenant Logistics Group Inc

Country

United States of America

Industry

Road & Rail

Market Cap

606m USD

Dividend Yield

0.96%

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

TENNESSEE
Chattanooga
400 Birmingham Hwy
+14238211212.0
https://www.covenantlogistics.com/

IPO

1994-10-28

Employees

4 500

Officers

Chairman of the Board & CEO
Mr. David Ray Parker
President & COO
Mr. M. Paul Bunn
Executive VP & CFO
Mr. James S. Grant III
Executive VP & Director
Mr. Joey B. Hogan
Executive Vice President of Expedited Operations
Mr. Samuel F. Hough
Executive Vice President of Dedicated & Warehousing Operations
Ms. Lynn Doster
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Chief Accounting Officer
Mr. Matisse Long
Senior Vice President of Technology
Mr. Eric Whitton
Senior VP & General Counsel
Mr. Troy A. Robertson
Executive Vice President of People & Safety
Ms. Joey Ballard
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See Also

Discover More
What is the Intrinsic Value of one CVLG stock?

The intrinsic value of one CVLG stock under the Base Case scenario is 59.69 USD.

Is CVLG stock undervalued or overvalued?

Compared to the current market price of 46.36 USD, Covenant Logistics Group Inc is Undervalued by 22%.