# Covenant Logistics Group (CVLG.US)

Canonical: https://gigainvestors.com/s/CVLG

Analysis as of: 2026-10-16T07:27:50.686Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $30.81 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.69×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.04×

- FY2018: 0.07×

- FY2019: 0.01×

- FY2020: -0.02×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.05×

- FY2024: 0.04×

- FY2025: 0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.6%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: 6.3 pp

- Typical gross margin (annual median): 14.3%

- Recent gross margin (lower of latest and 3-year median): 8.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.1%

- ROIC including acquisitions, ten-year median: -3.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.7%

- FY2017: 5.7%

- FY2018: 8.4%

- FY2019: 1.0%

- FY2020: -3.2%

- FY2021: 12.5%

- FY2022: 14.1%

- FY2023: 7.2%

- FY2024: 5.5%

- FY2025: 1.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.16×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $42M

- Net income, five-year total: $268M

- Return on incremental invested capital: -7.1%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: -5.2 pp

- Working capital / revenue, final three-year average: 11.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.31×

- FY2022: 1.00×

- FY2023: -1.67×

- FY2024: -0.53×

- FY2025: -4.72×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.7% vs 5.5%

- Per-share earnings: 1.15 to 1.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.0%

- Ordinary dilution, 5-year annual growth: -5.0%

- Market cap gain: $240M

- Cumulative retained earnings: $176M

- Diluted shares, 10-year annual growth: -3.0%

- Diluted shares, 5-year annual growth: -5.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.5%

- Per-share value change: $0.15

- Per-share value, starting three-year median: $1.15

- Per-share value, ending three-year median: $1.30

- Buybacks concentrated in cheaper years (correlation): -0.15

- Average buyback yield: 4.0%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $204M

- Cumulative net income, 10 years: $348M

- ROIC, first three-year median: 5.7%

- ROIC, last three-year median: 5.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.46

- FY2017: $1.51

- FY2018: $1.15

- FY2019: $0.23

- FY2020: -$1.23

- FY2021: $1.78

- FY2022: $3.50

- FY2023: $2.00

- FY2024: $1.30

- FY2025: $0.27

### accounting: pass

- Sloan accruals: -10.2%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 15.70×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.46×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.8%

- FY2017: -4.2%

- FY2018: -10.6%

- FY2019: -6.3%

- FY2020: -15.6%

- FY2021: -1.9%

- FY2022: -6.3%

- FY2023: -3.1%

- FY2024: -8.7%

- FY2025: -10.2%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 30% since Jun 2026 · sales +2.9%

Story as of 2026-10-16T09:58:35.754Z; price observation 2026-10-15.

- 2026-04-24: Covenant sees tightening capacity, rate momentum building in 2026 ([finance.yahoo.com](https://finance.yahoo.com/economy/policy/articles/covenant-sees-tightening-capacity-rate-174116314.html))

### Sales · FY2024–2025

sales +2.9%; source https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm; observed 2026-02-27.

- FY2016: $671M 

- FY2017: $705M 

- FY2018: $885M 

- FY2019: $885M 

- FY2020: $839M 

- FY2021: $1.0B 

- FY2022: $1.2B 

- FY2023: $1.1B 

- FY2024: $1.1B 

- FY2025: $1.2B 

### Gross margin · FY2025

gross margin 8%; source https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm; observed 2026-02-27.

- FY2016: 14.5% 

- FY2017: 13.2% 

- FY2018: 16.3% 

- FY2019: 11.9% 

- FY2020: 13.1% 

- FY2021: 14.1% 

- FY2022: 15.3% 

- FY2023: 14.9% 

- FY2024: 16.8% 

- FY2025: 8.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in trucking; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm (filed 2026-02-27); FY2025: revenue 1164472000; grossProfit 93312000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CVLG.US: 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 with the goal of three to five years in length 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, as well as shuttle and switching services related 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. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in May 2007. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.

### Why customers stay

Margins ranged from 8% to 16.8% during 2023–25; it earns 5.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 14.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 16.8%.

- Source: https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.0474288136584225],[2017,0.05703491375381094],[2018,0.08373783133024737],[2019,0.009868866032023638],[2020,-0.031543510872380824],[2021,0.1248797596580497],[2022,0.1413006264907394],[2023,0.07188068390580672],[2024,0.055498176608840655],[2025,0.016767302646636277]]; median 0.056266545181325796. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 15% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm (filed 2026-02-27); Gross margin observations: [[2021,0.14080361146191742],[2022,0.1528403478466674],[2023,0.14879124443965194]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 36.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 20563642.87603064; upkeep 90238357.12396936; owner earnings 37622642.87603064. Growth capex / owner earnings = 0.5465762451561244.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 75142000; owner earnings 43220000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 35285000; owner earnings 79327000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 42956000; upkeep 57512000; owner earnings 108682000. Growth capex / owner earnings = 0.3952448427522497.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,4287000],[2020,4287000],[2021,4287000],[2022,4287000],[2023,5781000],[2024,5796000],[2025,7162000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm (filed 2026-02-27); FY2025: cash repurchases 36571000 USD.

### Are managers owners

Insiders own 26% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CVLG.US SharesStats.PercentInsiders = 25.974000000000004 percentage points; cache date 2026-10-15.

### What the price says

The price is 0.7 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Closing price 30.81 USD; reporting-to-trading FX 1; FY2025 annual sales per share 43.27444349474153; price multiple 0.7119675612638174. FY2025 cash earnings/share -1.2696107790074904. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $8.00 per share

- 2016-11: $10.37 per share

- 2016-12: $9.67 per share

- 2017-01: $10.77 per share

- 2017-02: $10.02 per share

- 2017-03: $9.40 per share

- 2017-04: $9.37 per share

- 2017-05: $9.21 per share

- 2017-06: $8.77 per share

- 2017-07: $9.38 per share

- 2017-08: $12.01 per share

- 2017-09: $14.49 per share

- 2017-10: $14.85 per share

- 2017-11: $14.98 per share

- 2017-12: $14.37 per share

- 2018-01: $14.67 per share

- 2018-02: $12.91 per share

- 2018-03: $14.92 per share

- 2018-04: $13.88 per share

- 2018-05: $15.04 per share

- 2018-06: $15.75 per share

- 2018-07: $14.49 per share

- 2018-08: $14.94 per share

- 2018-09: $14.53 per share

- 2018-10: $12.52 per share

- 2018-11: $11.39 per share

- 2018-12: $9.60 per share

- 2019-01: $11.79 per share

- 2019-02: $11.41 per share

- 2019-03: $9.49 per share

- 2019-04: $9.77 per share

- 2019-05: $7.51 per share

- 2019-06: $7.36 per share

- 2019-07: $8.43 per share

- 2019-08: $7.19 per share

- 2019-09: $8.22 per share

- 2019-10: $7.69 per share

- 2019-11: $6.72 per share

- 2019-12: $6.47 per share

- 2020-01: $6.35 per share

- 2020-02: $6.05 per share

- 2020-03: $4.34 per share

- 2020-04: $4.44 per share

- 2020-05: $6.30 per share

- 2020-06: $7.22 per share

- 2020-07: $8.43 per share

- 2020-08: $9.17 per share

- 2020-09: $8.75 per share

- 2020-10: $6.89 per share

- 2020-11: $9.25 per share

- 2020-12: $7.41 per share

- 2021-01: $7.55 per share

- 2021-02: $9.09 per share

- 2021-03: $10.30 per share

- 2021-04: $10.76 per share

- 2021-05: $11.26 per share

- 2021-06: $10.34 per share

- 2021-07: $10.51 per share

- 2021-08: $12.18 per share

- 2021-09: $13.83 per share

- 2021-10: $14.20 per share

- 2021-11: $12.54 per share

- 2021-12: $13.22 per share

- 2022-01: $10.86 per share

- 2022-02: $11.26 per share

- 2022-03: $10.77 per share

- 2022-04: $10.27 per share

- 2022-05: $11.34 per share

- 2022-06: $12.55 per share

- 2022-07: $16.74 per share

- 2022-08: $14.06 per share

- 2022-09: $14.35 per share

- 2022-10: $18.92 per share

- 2022-11: $19.20 per share

- 2022-12: $17.29 per share

- 2023-01: $16.58 per share

- 2023-02: $17.33 per share

- 2023-03: $17.71 per share

- 2023-04: $19.70 per share

- 2023-05: $19.09 per share

- 2023-06: $21.92 per share

- 2023-07: $27.38 per share

- 2023-08: $24.59 per share

- 2023-09: $21.93 per share

- 2023-10: $19.75 per share

- 2023-11: $21.29 per share

- 2023-12: $23.02 per share

- 2024-01: $24.17 per share

- 2024-02: $24.34 per share

- 2024-03: $23.18 per share

- 2024-04: $22.60 per share

- 2024-05: $23.77 per share

- 2024-06: $24.65 per share

- 2024-07: $27.98 per share

- 2024-08: $26.34 per share

- 2024-09: $26.42 per share

- 2024-10: $25.30 per share

- 2024-11: $29.04 per share

- 2024-12: $27.26 per share

- 2025-01: $27.71 per share

- 2025-02: $25.17 per share

- 2025-03: $22.20 per share

- 2025-04: $19.90 per share

- 2025-05: $22.70 per share

- 2025-06: $24.11 per share

- 2025-07: $24.15 per share

- 2025-08: $24.13 per share

- 2025-09: $21.66 per share

- 2025-10: $20.17 per share

- 2025-11: $19.94 per share

- 2025-12: $22.04 per share

- 2026-01: $24.60 per share

- 2026-02: $29.44 per share

- 2026-03: $27.15 per share

- 2026-04: $34.86 per share

- 2026-05: $39.70 per share

- 2026-06: $44.18 per share

- 2026-07: $35.52 per share

- 2026-08: $35.35 per share

- 2026-09: $32.32 per share

- 2026-10: $30.81 per share

## Annual estimated value (USD per share)

- FY2021: low $17.70 per share, central $21.84 per share, high $25.47 per share

- FY2022: low $25.12 per share, central $32.17 per share, high $37.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/928658/000143774926006086/cvti20251231_10k.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.