Covenant Logistics Group Inc. Class A Common Stock (CVLG)

FairStock Score: 17/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Covenant at $31.45 as of the 2026-10-13 close, and I have to ask what I am getting. This is a cyclical trucking business, as FairStock classifies it, with expedited, dedicated, managed freight, and warehousing operations. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $332.9M, net income $8.5M, and diluted EPS $0.32. That is better than FY2025, when revenue was $1.2B but net income was only $7.2M and diluted EPS $0.27. Still, profits have fallen hard from FY2024 ($35.9M net income, $1.30 diluted EPS) and FY2023 ($55.2M net income, $2.00 diluted EPS). The margin is thin, and FairStock's metrics show why: ROE 0.23%, ROCE 1.15%, negative free cash flow of -$37.9M, and a -4.5% FCF yield. Debt to equity is 0.79, and Altman Z 1.64 suggests balance-sheet caution. At the 2026-10-13 close, FairStock calculates P/E 629, P/B 1.93, EV/EBITDA 10.62, and a Graham Number of $4.28, which leaves no margin of safety. The Piotroski F-Score is 5/9 and FairStock Score 17/100. Trucking has no wide moat; service matters, but pricing and freight cycles drive results. Management can create value if the cycle turns and cash flow recovers, but today the earnings power is poor and the price is not cheap on earnings. I would want to see consistent positive free cash flow and better returns on capital before calling this a bargain.

In plain English: Covenant Logistics is a trucking and logistics company that moves freight for customers. The business looks weak right now: profits are very small compared with revenue, and the company is using more cash than it brings in. At the recent stock price, the shares look expensive compared with those earnings, though they are not priced at a huge premium to the company's accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer