📊 CVLG Key Takeaways
Investment Thesis
Covenant Logistics faces severe operational challenges with a 79.8% year-over-year decline in net income despite modest 2.9% revenue growth, indicating deteriorating unit economics and margin compression in a capital-intensive trucking business. The company is consuming cash with negative free cash flow of -$33.9M while maintaining only $4.9M in liquidity and facing $234M in long-term debt, creating refinancing risk. Critical interest coverage of just 0.2x suggests the company struggles to service debt from operating earnings, presenting significant financial distress risk.
CVLG Strengths
- Revenue base of $1.2B provides scale in the trucking sector
- Positive operating cash flow of $113.6M demonstrates underlying business can generate cash
- Debt-to-equity ratio of 0.58x is moderate relative to industry leverage levels
CVLG Risks
- Catastrophic 79.8% decline in net income signals margin compression and operational deterioration
- Negative free cash flow of -$33.9M is unsustainable; capital expenditures exceed operating cash flow
- Interest coverage ratio of 0.2x indicates severe debt servicing stress and high default risk
- Minimal cash position of $4.9M provides minimal liquidity buffer against operational disruptions
- Operating margin compression to just 0.3% and net margin of 0.6% leave no room for adverse conditions
- Sustained profitability decline suggests structural headwinds in trucking operations rather than cyclical weakness
Key Metrics to Watch
- Operating margin trajectory and fleet utilization rates
- Free cash flow sustainability and ability to fund capital expenditures
- Debt refinancing activities and interest coverage improvement
CVLG Financial Metrics
💡 AI Analyst Insight
COVENANT LOGISTICS GROUP, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CVLG Profitability Ratios
CVLG vs Default Sector
How COVENANT LOGISTICS GROUP, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CVLG Balance Sheet & Liquidity
CVLG 5-Year Financial Trend
5-Year Trend Summary: COVENANT LOGISTICS GROUP, INC.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.00 reflects profitable operations.
CVLG Growth Metrics (YoY)
CVLG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $287.9M | $4.0M | $0.35 |
| Q2 2025 | $287.5M | $4.0M | $0.36 |
| Q1 2025 | $269.4M | $4.0M | $0.14 |
| Q3 2024 | $287.9M | $4.0M | $0.94 |
| Q2 2024 | $274.0M | $4.0M | $0.88 |
| Q1 2024 | $266.9M | $4.0M | $0.29 |
| Q3 2023 | $288.7M | $12.3M | $0.99 |
| Q2 2023 | $274.0M | $12.3M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CVLG Capital Allocation
CVLG SEC Filings
Access official SEC EDGAR filings for COVENANT LOGISTICS GROUP, INC. (CIK: 0000928658)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CVLG
What is the AI rating for CVLG?
COVENANT LOGISTICS GROUP, INC. (CVLG) has an AI rating of SELL with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVLG's key strengths?
Revenue base of $1.2B provides scale in the trucking sector. Positive operating cash flow of $113.6M demonstrates underlying business can generate cash.
What are the risks of investing in CVLG?
Catastrophic 79.8% decline in net income signals margin compression and operational deterioration. Negative free cash flow of -$33.9M is unsustainable; capital expenditures exceed operating cash flow.
What is CVLG's revenue and growth?
COVENANT LOGISTICS GROUP, INC. reported revenue of $1.2B.
Does CVLG pay dividends?
COVENANT LOGISTICS GROUP, INC. pays dividends, with $7.2M distributed to shareholders in the trailing twelve months.
Where can I find CVLG SEC filings?
Official SEC filings for COVENANT LOGISTICS GROUP, INC. (CIK: 0000928658) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CVLG's EPS?
COVENANT LOGISTICS GROUP, INC. has a diluted EPS of $0.27.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.