Commercial Vehicle Group (CVGI) AI Stock Analysis

• Market Cap: $52.65M
• Dividend Yield: N/A
• Average Volume (3M): 393.59K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.77
• Revenue Growth: -23.78%
• EPS Growth: -179.48%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): -0.08
• Shares Outstanding: 34,635,780
• 10 Day Avg. Volume: 306,680
• 30 Day Avg. Volume: 393,592
• PEG Ratio: 0.05
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.47
• Enterprise Value/Market Cap: 6.98
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 2.83
• 1Y Price Target: $4.00
• Price Target Upside: 172.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $1.50 ▲(2.04%Upside)

The overall stock score reflects significant financial challenges and valuation concerns, partially mitigated by improved operational efficiencies and technical momentum. The company's negative cash flows and earnings outlook weigh heavily, while technical analysis provides some short-term optimism.

Positive Factors

Cash Flow Management

Free cash flow from continuing operations increased to $11.2 million due to better working capital management and reduced capital expenditures.

Financial Performance

CVGI reported better-than-expected Q1/25 results with sales of $169.8 million and adjusted EBITDA of $5.8 million.

Operational Efficiency

Gross margin expanded by 250 bps due to operational efficiency improvements and conclusion of one-time cost drivers.

Negative Factors

Market Conditions

Revenue for Q4/24 declined 15.7% due primarily to a global softening in construction and agriculture markets and a decrease in Class 8 heavy truck builds.

Operational Inefficiencies

Adjusted operating loss totaled $4.3 million driven primarily by lower sales volumes and operational inefficiencies.

Revenue Decline

Revenue in the Global Electrical Systems segment decreased 14.1% due to decreased customer demand.

Commercial Vehicle Group Business Overview & Revenue Model

Company Description

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, produces, and sells components and assemblies in North America, Europe, and the Asia-Pacific regions. It operates in four segments: Vehicle Solutions, Warehouse Automation, Electrical Systems, and Aftermarket & Accessories. The company offers electrical wire harness assemblies that function as current carrying devices in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. It also offers electro-mechanical assemblies, such as box builds, complex automated and robotic assemblies, and large multi-cabinet control cabinets with power distribution and cabling; vinyl or cloth-covered appliqués, armrests, map pocket compartments, and sound-reducing insulations; instrument panels; and plastics decorating and finishing products. In addition, it provides cab structures; design products, including armrests, grab handles, storage systems, floor coverings, floor mats, sleeper bunks, headliners, wall panels, and privacy curtains; and mirrors, wipers, and controls used in commercial, military and specialty recreational vehicles. Further, it offers seats and seating systems, such as mechanical and air suspension, static and military seats, and bus, as well as seats for medium-and heavy-duty trucks (MD/HD trucks); office seating products; and seats, parts, and components for the aftermarket. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; and MD/HD truck, bus, construction, mining, agricultural, military, industrial, municipal, off-road recreational, and specialty vehicle markets. Commercial Vehicle Group, Inc. was incorporated in 2000 and is headquartered in New Albany, Ohio.

How the Company Makes Money

Commercial Vehicle Group generates revenue primarily through the manufacture and sale of its diverse range of products. The company's key revenue streams are driven by its core product lines, which include seating systems, electrical wire harnesses, and interior trim systems. These products are sold directly to original equipment manufacturers (OEMs) in the commercial vehicle industry. Additionally, CVGI engages in strategic partnerships and collaborations with major industry players to enhance its market reach and product offerings. The company benefits from long-term supply agreements with its clients, providing a stable and recurring revenue base. Furthermore, CVGI continually invests in research and development to innovate and expand its product lines, creating additional revenue opportunities.

Commercial Vehicle Group Financial Statement Overview

Summary

Commercial Vehicle Group is experiencing significant financial challenges, characterized by declining revenues, negative profit margins, and ongoing liquidity issues. While the balance sheet shows moderate leverage, the negative cash flow and profitability pressures are concerning for financial stability.

Income Statement

The company has experienced fluctuations in revenue with a recent decline as evidenced by a decrease from $994.7 million to $734.8 million in TTM. Gross and net profit margins have been volatile, with the latest TTM showing a gross profit margin of 10.0% and a negative net profit margin of -4.8%. EBIT and EBITDA margins have also been under pressure, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.86, signifying manageable leverage. However, the equity ratio of 32.5% suggests limited equity financing relative to total assets. Return on Equity (ROE) has been negative in the TTM, indicating poor profitability relative to shareholder equity, which could be a concern for investors.

Cash Flow

Cash flow analysis highlights significant challenges with a negative free cash flow of -$33.2 million in TTM. The operating cash flow to net income ratio is negative, indicating cash outflows from operations. The free cash flow to net income ratio is also negative, pointing to insufficient cash generation to cover net losses, which raises concerns regarding liquidity management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
734.76M	723.36M	994.68M	981.55M	971.58M	717.70M
	Gross Profit
73.51M	73.12M	135.02M	86.50M	118.99M	74.08M
	EBIT
1.28M	-758.00K	48.06M	-8.50M	31.96M	5.12M
	EBITDA
16.11M	20.57M	64.50M	33.79M	68.53M	-6.43M
	Net Income Common Stockholders
-35.12M	-27.87M	49.41M	-21.97M	23.73M	-37.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.21M	26.63M	37.85M	31.82M	34.96M	50.50M
	Total Assets
419.82M	424.57M	483.21M	470.27M	507.69M	454.37M
	Total Debt
117.40M	166.33M	173.65M	179.28M	222.52M	179.74M
	Net Debt
97.19M	139.70M	135.80M	147.46M	187.56M	129.24M
	Total Liabilities
283.17M	288.98M	310.28M	350.23M	381.04M	359.00M
	Stockholders Equity
136.66M	135.59M	172.93M	120.04M	126.65M	95.37M
Cash Flow		Free Cash Flow
-33.19M	-51.97M	18.58M	49.24M	-47.48M	27.23M
	Operating Cash Flow
-15.92M	-33.45M	38.28M	68.95M	-29.83M	34.37M
	Investing Cash Flow
28.95M	30.90M	-19.70M	-19.71M	-17.57M	-6.42M
	Financing Cash Flow
-39.42M	-7.12M	-12.73M	-50.09M	31.01M	-19.26M

Commercial Vehicle Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGI, the sentiment is Positive. The current price of 1.47 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.17, and below the 200-day MA of 2.17, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.41 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVGI.

Commercial Vehicle Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$5.09B	11.17	10.00%	3.23%	-3.15%	-6.70%
AXL	66 Neutral	$523.30M	25.80	3.40%	―	-4.25%	―
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
CPS	62 Neutral	$401.85M	―	112.26%	―	-3.14%	56.19%
SRI	58 Neutral	$176.82M	―	-6.63%	―	-8.90%	-346.80%
CVGI	50 Neutral	$52.65M	1.82	-26.02%	―	-23.78%	-179.48%
SUP	42 Neutral	$12.95M	―	-80.07%	―	-3.63%	36.19%

Commercial Vehicle Group Corporate Events

Commercial Vehicle Group Stockholders Approve Key Proposals

At the virtual Annual Meeting of Stockholders held on May 15, 2025, Commercial Vehicle Group‘s stockholders approved several key proposals, including the election of directors for terms expiring in 2026, the amended 2020 Equity Incentive Plan, and the compensation of named executive officers. Additionally, KPMG LLP was ratified as the independent public accounting firm for the fiscal year ending December 31, 2025. These approvals are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (CVGI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Commercial Vehicle Group stock, see the CVGI Stock Forecast page.

CVG Reports Q1 2025 Revenue Decline and Net Loss

CVG reported its first quarter 2025 financial results, showing a 12.7% decrease in revenues to $169.8 million due to reduced demand in global Construction and Agriculture markets and North America Class 8 trucks. Despite a net loss of $3.1 million, CVG improved its free cash flow significantly, enabling further debt reduction, and expanded its gross margin by 250 basis points compared to Q4 2024, thanks to operational efficiency improvements and strategic divestments made in 2024.

Commercial Vehicle Group Announces Executive Retention Agreements

Commercial Vehicle Group, Inc. announced retention agreements for key executives, effective April 1, 2025, to ensure leadership continuity. The agreements include retention bonuses for Andy Cheung, Aneezal Mohamed, and Kristin Mathers, payable by March 31, 2027, contingent on continued employment. Additionally, Robert C. Griffin, Chairman of the Board since 2005, will retire on May 15, 2025, with William C. Johnson expected to succeed him as Chairman.