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Background and Strategy We were founded in 1986 as a provider of expedited freight transportation, primarily using two-person driver teams in transcontinental lanes. Since that time, we have grown from 25 tractors to approximately 2,300 tractors and expanded our services to include a wide array of transportation and logistics services for our customers.
$47.34
$0.87 (-1.80%)
EOD Jul 17, 2026
Operating margin is thin at 0.25%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.9%, essentially flat. Margins also contracted 3.7pp. This is a business that needs a catalyst.
At 237x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 4.73% to 0.24%, capital efficiency is deteriorating.
236.7x earnings. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.20B
▲ +2.9% YoY
Net Income (TTM)
$5M
▼ -79.8% YoY
Op. Margin
0.13%
▼ -3.7pp YoY
ROIC
0.17%
▼ -4.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$8M
▼ -12.8% YoY
Op. Cash Flow (TTM)
$118M
▼ -7.5% YoY
Net Debt
$281M
Cash & Equiv.
$11M
5Y CAGR: +6.8%
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At a P/E of 236.7, Covenant Logistics Group (CVLG)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Covenant Logistics Group scores 14/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.7%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Covenant Logistics Group scores 14 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 0.1% operating margin and a 0.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Covenant Logistics Group pays a regular dividend of about $0.35 per share per year (typically in quarterly installments), a yield of roughly 0.7% at the current price. That is a payout ratio of about 138.5% of earnings, so the dividend is stretched at this level. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For CVLG's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. you should weigh CVLG's valuation and scores 14/100 on quality (lower-quality). It also yields about 0.7%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.