ABR

Covenant Logistics Group, Inc.

Fundamental data last updated:July 10, 2026

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company profile

SECTOR

Industrials

industry

Trucking

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/22/2026

Business Summary

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.

 


VALUATION

P/E

194.66

Market Cap ($M USD)

$994.94M

Forward P/E

15.07

PEG

0.01

PRICE TO SALES

0.83

PRICE TO BOOK

2.43

EV / EBITDA

9.66

5-Year Average P/E

Free Cash Flow Yield

14.05%

DCF Value

$41.73

Graham Number

$8.62

Price to FCF

7.12

EV to FCF

7.45

Earnings Yield

0.51%

FCF Yield

14.05%

DIVIDEND

Yield

0.71%

Annual Payout

$0.28

Payout Ratio

138.54%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.20

Next Year EPS Growth Estimate

$2.63

Next Year Revenue Growth Estimate

$140.37B

Return on Equity (ROE)

1.23%

FREE CASH FLOW

Operating Margin

1.61%

Debt-to-Equity

0.84

Piotroski F-Score

6

Altman Z-Score

2.60

Return on Invested Capital (ROIC)

2.37%

Current Ratio

1.04

Quick Ratio

1.04

Net Debt to EBITDA

0.43

Interest Coverage

1.48

Gross Profit margin

12.80%

FCF PER SHARE

$5.58

REVENUE PER SHARE

$47.93

Gainseekers Quantitative Analysis

Summary

CVLG’s valuation presents a mixed picture. The stock has traded below its DCF value, suggesting potential undervaluation, yet its Price/Earnings ratio is sky-high, indicating market skepticism about current earnings quality. The Forward P/E, however, is much more reasonable, hinting at expected earnings growth. With an Altman Z-score of 2.44, the company is in a gray zone, neither financially distressed nor entirely safe. The earnings yield is paltry, raising questions about immediate returns, but the Graham Number suggests some intrinsic value.

AI Exposure / Tech Reliance

Operating in the trucking industry, CVLG is positioned to leverage AI for route optimization and fuel efficiency, enhancing operational margins. However, the sector's capital-intensive nature may slow tech adoption. The company's adaptability will hinge on integrating AI into logistics without disrupting existing operations.

The Bull Case

For the value-driven investor, CVLG offers compelling reasons to buy. The Forward PEG ratio is strikingly low, indicating undervaluation relative to growth. A solid FCF yield and a Piotroski F-Score of 6 suggest efficient capital management and operational health. Despite modest margins, the company's ability to generate free cash flow points to strong pricing power and disciplined cost control.

The Bear Case

Yet, structural risks loom large. The Price/Book and Price/Sales ratios are elevated, hinting at potential overvaluation. The stock's proximity to its 52-week high suggests technical overextension, while a payout ratio over 100% raises sustainability concerns. Operating margins are thin, and the interest coverage ratio is weak, highlighting vulnerability to economic downturns.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

1.29

Insider Buying % (6 Mo)

Distance to 52-Week High

1.14%

Distance to 52-Week Low

54.49%

EARNINGS SURPRISE %

-25.71%

50-DAY SMA

$31.34

200-DAY SMA

$25.51

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.