Covenant Logistics Group (CVLG) AI Stock Analysis

• Market Cap: $540.42M
• Dividend Yield: 1.23%
• Average Volume (3M): 88.23K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.25
• Revenue Growth: 0.75%
• EPS Growth: -15.76%
• Country: US
• Employees: 3,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.45
• Shares Outstanding: 20,319,618
• 10 Day Avg. Volume: 130,849
• 30 Day Avg. Volume: 88,232
• 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: 1.79
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 6.57
• 1Y Price Target: $28.50
• Price Target Upside: 31.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $27.00 ▲(25.00% Upside)

Covenant Logistics Group's overall stock score reflects stable financial performance and reasonable valuation, tempered by increased leverage and mixed earnings call sentiment. The technical indicators suggest a neutral market position, with potential for improvement if operational challenges are addressed.

Positive Factors

Revenue Growth

The consistent revenue growth reflects Covenant Logistics' ability to expand its market presence and enhance its service offerings, which is crucial for long-term business sustainability.

Growth in Dedicated Fleet

Expansion of the dedicated fleet enhances Covenant's capacity to meet client demands, supporting sustained revenue growth and competitive positioning in the logistics sector.

Managed Freight Segment Performance

The strong performance of the Managed Freight segment indicates effective strategic positioning and operational execution, contributing to long-term profitability and market resilience.

Negative Factors

Increased Debt Levels

Rising debt levels can strain Covenant's financial flexibility and increase risk, potentially impacting its ability to invest in growth opportunities and manage economic downturns.

Margin Compression

Margin compression due to rising costs can erode profitability, challenging Covenant's ability to maintain competitive pricing and invest in future growth initiatives.

Warehouse Segment Profit Decline

The decline in warehouse segment profitability highlights operational inefficiencies, which could hinder Covenant's ability to capitalize on logistics demand and optimize supply chain operations.

Covenant Logistics Group Business Overview & Revenue Model

Company Description

Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. The Dedicated segment provides customers with committed truckload capacity over contracted periods using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. The Warehousing segment provides day-to-day warehouse management services to customers. The segment also provides shuttle and switching services to shuttling containers and trailers. The company also engages in used equipment sales and leasing business. It serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of December 31, 2021, it operated 2,291 tractors and 5,331 trailers. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in July 2020. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.

How the Company Makes Money

Covenant Logistics Group generates revenue primarily through its transportation services, which include truckload and dedicated freight services. The company earns money by charging customers for the movement of goods, utilizing its fleet of trucks and drivers. Key revenue streams include spot market freight, contracted freight services, and logistics management services. Additionally, CVLG benefits from strategic partnerships with various shippers and suppliers, which enhance its service offerings and improve operational efficiency. The company may also leverage technology and data analytics to optimize routes and reduce costs, further contributing to its earnings.

Covenant Logistics Group Financial Statement Overview

Summary

Covenant Logistics Group shows stable financials with a strong balance sheet and moderate profitability. However, cash flow challenges due to high capital expenditures impact liquidity.

Income Statement

The income statement shows mixed results. The TTM gross profit margin is approximately 15.0%, indicating reasonable cost management. However, the net profit margin stands at 3.4%, reflecting modest net profitability. Revenue growth is inconsistent, with a decline from 2022 to 2023, but a small recovery in 2024. EBIT and EBITDA margins have improved slightly in the recent TTM, reflecting operational efficiency.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.63 in the TTM, suggesting manageable leverage. The return on equity is around 8.7%, which is moderate. The equity ratio of 45.3% in the TTM points to a solid equity base, supporting financial stability.

Cash Flow

The cash flow statement highlights challenges with free cash flow, which is negative in the TTM. The operating cash flow to net income ratio is favorable at 3.3, indicating strong cash generation relative to profits. However, free cash flow to net income is negative, reflecting high capital expenditures impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.13B	1.10B	1.22B	1.05B	838.56M
Gross Profit	182.66M	189.65M	164.20M	185.99M	147.28M	109.55M
EBITDA	147.23M	146.00M	150.15M	137.87M	117.24M	70.32M
Net Income	36.16M	35.92M	55.23M	108.68M	60.73M	-42.72M
Balance Sheet
Total Assets	1.01B	997.57M	954.44M	796.64M	651.66M	676.72M
Cash, Cash Equivalents and Short-Term Investments	268.69M	35.62M	2.29M	68.67M	8.41M	8.41M
Total Debt	310.54M	296.89M	293.46M	179.63M	74.25M	111.59M
Total Liabilities	592.22M	559.23M	551.02M	419.52M	301.96M	386.07M
Stockholders Equity	416.87M	438.34M	403.42M	377.13M	349.70M	290.64M
Cash Flow
Free Cash Flow	1.60M	-30.07M	-132.77M	58.76M	37.93M	-31.01M
Operating Cash Flow	125.53M	122.89M	84.84M	159.23M	73.22M	63.04M
Investing Cash Flow	-74.73M	-107.67M	-235.92M	-86.21M	10.34M	138.05M
Financing Cash Flow	-51.94M	18.11M	84.71M	-12.77M	-83.56M	-236.27M

Covenant Logistics Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLG, the sentiment is Negative. The current price of 21.6 is below the 20-day moving average (MA) of 23.02, below the 50-day MA of 23.66, and below the 200-day MA of 23.98, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 10.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVLG.

Covenant Logistics Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVLG	69 Neutral	$540.42M	16.53	8.58%	1.23%	0.75%	-15.76%
ARCB	66 Neutral	1.56B	10.18	12.17%	0.70%	-6.42%	25.72%
ULH	62 Neutral	618.75M	10.14	9.34%	1.79%	-5.55%	-52.21%
WERN	58 Neutral	1.57B	30.66	3.69%	2.13%	-6.43%	-13.76%
MRTN	56 Neutral	874.71M	41.82	2.71%	2.24%	-11.77%	-52.06%
HTLD	52 Neutral	662.61M	-18.71	-3.61%	0.93%	-16.42%	-49.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Covenant Logistics Group Corporate Events

Covenant Logistics Announces New Accounting Officer

On August 11, 2025, Matisse Long resigned as the Chief Accounting Officer of Covenant Logistics Group, Inc., and the Board of Directors appointed James ‘Tripp’ S. Grant as the new principal accounting officer, effective immediately. Additionally, on August 12, 2025, the Board declared a quarterly cash dividend of $0.07 per share for Class A and Class B common stock, payable on September 26, 2025, to stockholders of record as of September 5, 2025, continuing a previously approved dividend program.