Commercial Vehicle Group (CVGI) AI Stock Analysis

• Market Cap: $68.23M
• Dividend Yield: N/A
• Average Volume (3M): 447.70K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.93
• Revenue Growth: -23.78%
• EPS Growth: -179.48%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): -0.08
• Shares Outstanding: 34,635,780
• 10 Day Avg. Volume: 187,090
• 30 Day Avg. Volume: 447,699
• PEG Ratio: 0.07
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.96
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $4.00
• Price Target Upside: 112.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $2.00 ▲(6.38%Upside)

The overall stock score of 53 reflects a company facing financial difficulties, highlighted by declining revenue and profitability concerns. Despite positive technical analysis and recent corporate events enhancing financial flexibility, the negative valuation and ongoing operational challenges weigh heavily on the score.

Positive Factors

Earnings

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

New Business

New business wins in excess of $97 million when fully ramped are concentrated in the Electrical Systems segment predominantly outside of construction and agriculture end markets.

Operational Efficiency

Gross margin expanded by 250 bps from Q4/24 due to operational efficiency improvements and conclusion of one-time cost drivers.

Negative Factors

Market Softening

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 sale of its products directly to original equipment manufacturers (OEMs) and suppliers in the commercial vehicle sector. Key revenue streams include the manufacturing and distribution of cab structures and components, electrical wiring systems, and seating systems. The company establishes long-term contracts and partnerships with OEMs, which provide a steady income stream. Additionally, its global presence allows it to leverage economies of scale and benefit from diverse market demands across different regions, contributing to its earnings.

Commercial Vehicle Group Financial Statement Overview

Summary

Commercial Vehicle Group faces notable financial challenges with declining revenues and profitability pressures. The balance sheet shows moderate leverage but limited equity. Persistent cash flow issues, particularly negative operating and free cash flows, highlight liquidity risks. While there are areas of concern, managing operational efficiency and improving cash flow generation will be crucial 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	723.36M	994.68M	981.55M	971.58M	717.70M
Gross Profit	73.12M	135.02M	86.50M	118.99M	74.08M
EBITDA	20.57M	64.50M	33.79M	68.53M	-6.43M
Net Income	-27.87M	49.41M	-21.97M	23.73M	-37.05M
Balance Sheet
Total Assets	424.57M	483.21M	470.27M	507.69M	454.37M
Cash, Cash Equivalents and Short-Term Investments	26.63M	37.85M	31.82M	34.96M	50.50M
Total Debt	166.33M	173.65M	179.28M	222.52M	179.74M
Total Liabilities	288.98M	310.28M	350.23M	381.04M	359.00M
Stockholders Equity	135.59M	172.93M	120.04M	126.65M	95.37M
Cash Flow
Free Cash Flow	-51.97M	18.58M	49.24M	-47.48M	27.23M
Operating Cash Flow	-33.45M	38.28M	68.95M	-29.83M	34.37M
Investing Cash Flow	30.90M	-19.70M	-19.71M	-17.57M	-6.42M
Financing Cash Flow	-7.12M	-12.73M	-50.09M	31.01M	-19.26M

Commercial Vehicle Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1.88 is above the 20-day moving average (MA) of 1.85, above the 50-day MA of 1.56, and below the 200-day MA of 1.93, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 69.66 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	74 Outperform	$5.66B	12.41	10.00%	3.54%	-3.15%	-6.70%
AXL	68 Neutral	$575.51M	27.62	3.40%	―	-4.25%	―
Sector *	63 Neutral	$17.32B	10.90	-7.25%	3.10%	1.66%	-25.40%
CPS	60 Neutral	$413.43M	―	112.26%	―	-3.14%	56.19%
SRI	59 Neutral	$226.39M	―	-6.63%	―	-8.90%	-346.80%
CVGI	53 Neutral	$68.23M	1.82	-26.02%	―	-23.78%	-179.48%
SSUP	45 Neutral	$2.67M	―	-80.07%	―	-3.63%	36.19%

Commercial Vehicle Group Corporate Events

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.

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.

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.