Covenant Logistics Group, Inc.

$ 42.63 0.85 %

Covenant Logistics Group, Inc. and its affiliated entities deliver extensive transportation and logistics solutions throughout the United States. The company's operations are divided into four main segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited division focuses on time-critical truckload services, maintaining strict delivery benchmarks, including the capability to cover 1,000 miles within 22 hours or meet precise 15-minute delivery windows. Its Dedicated segment offers clients committed truckload capacity for specific periods under contract, deploying either company-owned or leased equipment. Within the Managed Freight segment, the company provides brokerage services by enlisting third-party carriers to transport customer freight, and transport management services, where it manages logistics on a contractual basis for clients opting to outsource these functions. The Warehousing segment handles daily warehouse management for its customers, alongside offering shuttle and switching services for containers and trailers. Furthermore, Covenant Logistics engages in the sale and leasing of used equipment. Its diverse customer base includes various transportation businesses like parcel freight forwarders, less-than-truckload (LTL) carriers, and third-party logistics (3PL) providers, in addition to conventional truckload clients such as manufacturers, retailers, and food and beverage distributors. As of December 31, 2021, the company operated a fleet of 2,291 tractors and 5,331 trailers. Founded in 1986 and based in Chattanooga, Tennessee, the company changed its name from Covenant Transportation Group, Inc. to Covenant Logistics Group, Inc. in July 2020.

CEO: David Ray Parker - https://www.covenantlogistics.com

Price objectif

-

Recommandation

Hold

DCF

$ 36.16

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CVLG vs S&P500

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Quick ratio

1.01

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

473.67

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

0.09

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

1.23 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

1.59 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

8.76

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.72

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

5.58

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

138.54 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
2.69 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.06 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.29 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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