Education
About Us
Working with TipRanks
Follow Us
Commercial Vehicle Group (CVGI)
NASDAQ:CVGI
Top Page
Commercial Vehicle Group
(NASDAQ:CVGI)
Select Model
Select Model
Rating:43Neutral
Price Target:
$1.50
▲(11.94% Upside)
The overall stock score of 43 reflects significant financial challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call highlighted some operational improvements, the overall sentiment remains cautious.
Positive Factors
Operational Efficiency
Improved gross margins indicate successful operational efficiency initiatives, enhancing long-term profitability and competitive positioning.
Cash Flow Improvement
Enhanced free cash flow generation strengthens financial stability, enabling investment in growth opportunities and debt reduction.
Debt Refinancing
Debt refinancing enhances financial flexibility, supporting strategic initiatives and improving the company's ability to manage economic fluctuations.
Negative Factors
Revenue Decline
Declining revenue reflects challenges in market demand, potentially impacting long-term growth and market share if not addressed.
Net Loss Increase
Increasing net losses highlight financial strain, necessitating improved cost management and revenue strategies to achieve profitability.
Revenue Guidance Revision
Downward revision of revenue guidance indicates ongoing market challenges, potentially affecting investor confidence and strategic planning.
Commercial Vehicle Group (CVGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.74M
Dividend YieldN/A
Average Volume (3M)116.81K
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth-27.36%
EPS Growth-218.40%
CountryUS
Employees6,400
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.09
Shares Outstanding36,983,950
10 Day Avg. Volume99,607
30 Day Avg. Volume116,815
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.61
Price to Sales (P/S)0.11
P/FCF Ratio-1.59
Enterprise Value/Market Cap3.08
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit2.53
Enterprise Value/Ebitda12.27
Forecast
1Y Price Target
$4.00Price Target Upside198.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Commercial Vehicle Group Business Overview & Revenue Model
Company DescriptionCommercial Vehicle Group, Inc. (CVGI) is a leading provider of a wide range of components and systems for the commercial vehicle market. The company operates primarily in two sectors: the Heavy Duty Truck and Bus market, and the Off-Highway market. CVGI's core products include seating systems, electrical and electronic components, and various cab-related products, serving customers involved in the manufacture and assembly of commercial vehicles and equipment.
How the Company Makes MoneyCVGI 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 Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging environment with significant revenue and EBITDA declines, increased net loss, and downward revisions of guidance, despite positive steps in cost management, cash flow improvements, and debt refinancing. The sentiment is balanced with operational improvements and strategic financial flexibility gains.Q2-2025 Updates
Positive Updates
Improved Gross Margin and Free Cash Flow
CVG delivered an adjusted gross margin of 12%, up 120 basis points sequentially and 70 basis points year-over-year. Free cash flow improved to $17.3 million, an increase of $16.5 million compared to last year.
Debt Refinancing Provides Financial Flexibility
Completed debt refinancing during the second quarter, providing significantly more financial flexibility for operational initiatives, including cost reductions and margin improvements.
Global Electrical Systems Segment Performance
Revenues in the Global Electrical Systems segment remained flat compared to the prior year, with an improvement in adjusted operating income by $0.4 million due to lower salary expenses.
Raised Free Cash Flow Guidance
Free cash flow guidance for the year was raised to at least $30 million, reflecting robust performance year-to-date.
Negative Updates
Revenue and EBITDA Decline
Consolidated second quarter 2025 revenue was $172 million, down from $193.7 million in the prior year. Adjusted EBITDA was $5.2 million, down from $8.2 million in the prior year, driven by lower volumes.
Net Loss Increase
Net loss for the quarter was $4.1 million, compared to a net loss of $1.3 million in the prior year. Adjusted net loss was $2.9 million, compared to adjusted net income of $1.5 million in the prior year.
Trim Systems and Components Revenue Decrease
Revenues in the Trim Systems and Components segment decreased 24% to $43.9 million due to lower sales volume from decreased customer demand.
Downward Revision of Revenue and EBITDA Guidance
Full year 2025 revenue guidance was revised down to $650 million to $670 million from $660 million to $690 million, and adjusted EBITDA guidance was lowered to $21 million to $25 million from $22 million to $27 million.
Company Guidance
During CVG's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a solid performance despite challenging market conditions. The company reported an adjusted gross margin of 12%, which increased by 120 basis points sequentially and 70 basis points year-over-year, driven by operational efficiency initiatives. Free cash flow generation was highlighted, with $17.3 million achieved in the quarter, marking an improvement of $16.5 million compared to the previous year. CVG's Global Electrical Systems segment saw revenue stabilization with flat revenues year-over-year but a $0.4 million improvement in adjusted operating income due to lower salary expenses. The company completed a debt refinancing to enhance financial flexibility for further operational initiatives. While CVG revised its full-year 2025 revenue guidance to $650 million-$670 million, down from $660 million-$690 million, it raised its free cash flow outlook to at least $30 million for the year, underscoring a focus on cash generation and debt reduction.Commercial Vehicle Group Financial Statement Overview
Summary
Commercial Vehicle Group is facing financial difficulties with declining revenues, negative profitability, and cash flow challenges. The income statement shows a decline in revenue by 7.89% and negative net profit margins. The balance sheet reveals a moderate financial position with some improvement in leverage, but the company must address operational inefficiencies and enhance cash flow management.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.45
Neutral
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.55
Neutral
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.40
Negative
| 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
Negative
1.34
Price Trends
1.69
Negative
1.73
Negative
1.61
Negative
Market Momentum
-0.07
Positive
29.25
Positive
5.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGI, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.69, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 5.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVGI.
Commercial Vehicle Group Risk Analysis
Commercial Vehicle Group disclosed 37 risk factors in its most recent earnings report. Commercial Vehicle Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Commercial Vehicle Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $280.87M | 11.72 | 10.85% | ― | 6.83% | 46.38% | |
69 Neutral | $126.72M | 4.27 | 8.04% | ― | 17.08% | -18.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $440.91M | 14.85 | 7.39% | 1.96% | -36.91% | -56.72% | |
54 Neutral | $172.86M | ― | -12.26% | ― | -4.91% | -331.53% | |
43 Neutral | $54.74M | -1.20 | -27.62% | ― | -27.36% | -218.40% | |
41 Neutral | $4.87M | -0.07 | -264.35% | ― | -98.22% | 49.35% |
* Consumer Cyclical Sector Average
CVGI
Commercial Vehicle Group
1.34
-1.37
-50.55%
CAAS
China Automotive Systems
4.15
-0.55
-11.70%
MLR
Miller Industries
39.37
-36.26
-47.94%
SRI
Stoneridge
6.17
-1.35
-17.95%
STRT
Strattec Security
67.11
25.19
60.09%
SBLX
StableX Technologies
3.46
-8.79
-71.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.