Commercial Vehicle Group (CVGI) AI Stock Analysis

• Market Cap: $68.05M
• Dividend Yield: N/A
• Average Volume (3M): 143.85K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 1.00
• Revenue Growth: -27.36%
• EPS Growth: -218.40%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): -0.09
• Shares Outstanding: 36,983,950
• 10 Day Avg. Volume: 107,630
• 30 Day Avg. Volume: 143,851
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: 12.27
• 1Y Price Target: $3.33
• Price Target Upside: 80.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $2.00 ▲(8.70% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and profitability issues. While technical indicators and valuation are weak, recent earnings call insights and corporate events provide some positive outlook through operational improvements and enhanced financial flexibility.

Positive Factors

Debt Management

The completion of a debt refinancing extended maturities through 2030.

Financial Performance

CVGI delivered solid Q2/25 results with a sequential improvement in profitability and solid free cash generation in a particularly challenging market environment.

Operational Efficiency

Improvement in gross margin is being driven by operational efficiency improvements related to freight, labor, and plant level overhead.

Negative Factors

Operational Inefficiencies

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

Revenue Decline

Q2/25 revenues of $172.0 million declined 11.2% versus $193.7 million in Q2/24 due to continued softness in customer demand across all segments.

Segment Performance

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

CVGI generates revenue through the sale of its products to original equipment manufacturers (OEMs) and aftermarket customers in the commercial vehicle sector. Key revenue streams include the production of seating systems for heavy-duty trucks and buses, which are essential for ensuring driver comfort and safety. Additionally, the company earns revenue from electrical systems and components that enhance vehicle performance and reliability. CVGI also benefits from strategic partnerships with major OEMs, which provide a stable demand for its products. The company's ability to innovate and expand its product offerings in response to industry trends, such as the shift towards electric vehicles, further contributes to its earnings potential.

Commercial Vehicle Group Financial Statement Overview

Summary

Commercial Vehicle Group is facing financial difficulties with declining revenues, negative profitability, and cash flow challenges. While the balance sheet shows some improvement in leverage, the company must address operational inefficiencies and enhance cash flow management to achieve financial stability and growth.

Income Statement

The income statement shows a challenging period for Commercial Vehicle Group. The TTM data indicates a decline in revenue by 7.89% and negative net profit margins at -5.66%. Gross profit margins have decreased compared to previous years, and EBIT margins are negative, reflecting operational inefficiencies. The company needs to address declining revenues and improve cost management to return to profitability.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 0.86 in TTM, showing improvement from previous years. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, suggesting a balanced asset structure, but the company needs to enhance profitability to improve ROE.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is high at 2.30, suggesting cash flow issues relative to earnings. The company must focus on improving cash generation from operations to stabilize its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	676.82M	723.36M	994.68M	981.55M	971.58M	717.70M
Gross Profit	66.82M	73.12M	135.02M	85.03M	118.99M	74.08M
EBITDA	13.76M	20.57M	64.50M	26.86M	68.53M	-6.43M
Net Income	-38.28M	-27.87M	49.41M	-21.97M	23.73M	-37.05M
Balance Sheet
Total Assets	429.79M	424.57M	483.21M	470.27M	507.69M	454.37M
Cash, Cash Equivalents and Short-Term Investments	45.29M	26.63M	37.85M	31.82M	34.96M	50.50M
Total Debt	130.38M	166.33M	173.65M	179.28M	222.52M	179.74M
Total Liabilities	287.16M	288.98M	310.28M	350.23M	381.04M	359.00M
Stockholders Equity	142.63M	135.59M	172.93M	120.04M	126.65M	95.37M
Cash Flow
Free Cash Flow	-22.17M	-51.97M	18.58M	49.24M	-47.48M	27.23M
Operating Cash Flow	-9.64M	-33.45M	38.28M	68.95M	-29.83M	34.37M
Investing Cash Flow	33.69M	30.90M	-19.70M	-19.71M	-17.57M	-6.42M
Financing Cash Flow	-19.70M	-7.12M	-12.73M	-50.09M	31.01M	-19.26M

Commercial Vehicle Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.84 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.81, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 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	76 Outperform	$5.91B	12.97	9.51%	2.77%	-3.12%	-8.23%
CPS	64 Neutral	$677.12M	23.77	112.26%	―	-2.70%	―
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
AXL	61 Neutral	$706.05M	17.29	6.38%	―	-6.73%	4900.00%
SRI	55 Neutral	$225.73M	―	-11.20%	―	-6.99%	-1688.02%
CVGI	50 Neutral	$68.05M	1.82	-27.62%	―	-27.36%	-218.40%
SSUP	43 Neutral	$3.24M	―	-80.07%	―	-8.31%	-56.03%

Commercial Vehicle Group Corporate Events

Commercial Vehicle Group Realigns Reportable Segments

Commercial Vehicle Group announced a realignment of its reportable segments effective January 1, 2025, to better align with customer needs and market demands. The company reorganized its business into three divisions: Global Electrical Systems, Global Seating, and Trim Systems and Components, absorbing its Aftermarket & Accessories unit into these segments. This strategic change aims to enhance operational efficiency and market focus, with the new structure reflected in financial statements starting the first quarter of 2025. The reorganization does not alter previously reported consolidated financial statements but adjusts segment reporting to match the new structure.

Commercial Vehicle Group Director Resignation Announcement

On July 29, 2025, Scott Reed, the Chief Operating Officer of Commercial Vehicle Group, Inc., announced his resignation effective August 29, 2025, to pursue consulting opportunities. Additionally, on August 1, 2025, Ruth Gratzke, a Director since 2021, resigned from the Board of Directors due to personal reasons, effective August 7, 2025. Following Ms. Gratzke’s departure, the Board plans to reduce its size to six members.

CVG Reports Q2 2025 Revenue Decline Amid Global Demand Drop

In its second quarter of 2025, CVG reported a revenue decline of 11.2% to $172 million due to reduced global demand, resulting in a net loss of $4.1 million. Despite these challenges, the company achieved strong free cash flow generation and improved gross margins through operational efficiencies and strategic initiatives, including refinancing credit facilities to enhance financial flexibility.

Commercial Vehicle Group Secures $210 Million Refinancing

On June 27, 2025, Commercial Vehicle Group (CVG) completed a significant refinancing of its debt facilities, securing $210 million in senior secured credit facilities. This includes a $95 million term loan and a $115 million asset-based revolving credit facility, both maturing in 2030. The refinancing extends the company’s debt maturity and enhances financial flexibility, allowing CVG to focus on cost reductions, margin improvements, and operational efficiency. Additionally, the transaction involves issuing warrants to TCW Group affiliates, providing further capital structure adjustments.