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Covenant Transportation Group

Nasdaq:CVTI
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CVTI
Nasdaq
$589M
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

Covenant Transportation Group, Inc., together with its subsidiaries, provides truckload transportation and brokerage services primarily in the continental United States. The last earnings update was 81 days ago. More info.


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CVTI Share Price and Events
Price Volatility
CVTI
Industry
5yr Volatility vs Market

CVTI Value

 Is Covenant Transportation Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Covenant Transportation Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Covenant Transportation Group.

NasdaqGS:CVTI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CVTI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.705 (1 + (1- 21%) (36.3%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.907 * 7.05%)
9.34%

Discounted Cash Flow Calculation for NasdaqGS:CVTI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Covenant Transportation Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CVTI DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 101.70 86.90 87.07 87.24 87.42
Source Analyst x1 Analyst x1 Extrapolated @ (0.2%) Extrapolated @ (0.2%) Extrapolated @ (0.2%)
Present Value
Discounted (@ 9.34%)
93.01 72.69 66.61 61.04 55.93
Present value of next 5 years cash flows $349
NasdaqGS:CVTI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $87 × (1 + 2.95%) ÷ (9.34% – 2.95%)
$1,408
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,408 ÷ (1 + 9.34%)5
$901
NasdaqGS:CVTI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $349 + $901
$1,250
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,250 / 18
$68.2
NasdaqGS:CVTI Discount to Share Price
Calculation Result
Value per share (USD) From above. $68.20
Current discount Discount to share price of $32.15
= -1 x ($32.15 - $68.20) / $68.20
52.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Covenant Transportation Group is available for.
Intrinsic value
>50%
Share price is $32.15 vs Future cash flow value of $68.2
Current Discount Checks
For Covenant Transportation Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Covenant Transportation Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Covenant Transportation Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Covenant Transportation Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Covenant Transportation Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CVTI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $3.27
NasdaqGS:CVTI Share Price ** NasdaqGS (2018-06-19) in USD $32.15
United States of America Transportation Industry PE Ratio Median Figure of 62 Publicly-Listed Transportation Companies 16.21x
United States of America Market PE Ratio Median Figure of 7,865 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Covenant Transportation Group.

NasdaqGS:CVTI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CVTI Share Price ÷ EPS (both in USD)

= 32.15 ÷ 3.27

9.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covenant Transportation Group is good value based on earnings compared to the US Transportation industry average.
  • Covenant Transportation Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Covenant Transportation Group's expected growth come at a high price?
Raw Data
NasdaqGS:CVTI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-6.6%per year
United States of America Transportation Industry PEG Ratio Median Figure of 56 Publicly-Listed Transportation Companies 2.38x
United States of America Market PEG Ratio Median Figure of 5,963 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:CVTI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.82x ÷ -6.6%

-1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covenant Transportation Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Covenant Transportation Group's assets?
Raw Data
NasdaqGS:CVTI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $16.46
NasdaqGS:CVTI Share Price * NasdaqGS (2018-06-19) in USD $32.15
United States of America Transportation Industry PB Ratio Median Figure of 69 Publicly-Listed Transportation Companies 1.84x
United States of America Market PB Ratio Median Figure of 13,233 Publicly-Listed Companies 1.75x
NasdaqGS:CVTI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CVTI Share Price ÷ Book Value per Share (both in USD)

= 32.15 ÷ 16.46

1.95x

* Primary Listing of Covenant Transportation Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covenant Transportation Group is overvalued based on assets compared to the US Transportation industry average.
X
Value checks
We assess Covenant Transportation Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. Covenant Transportation Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CVTI Future Performance

 How is Covenant Transportation Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Covenant Transportation Group expected to grow at an attractive rate?
  • Covenant Transportation Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • Covenant Transportation Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Covenant Transportation Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CVTI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CVTI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -6.6%
NasdaqGS:CVTI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 9.8%
United States of America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 2.8%
United States of America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CVTI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CVTI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31 868 139 44 3
2018-12-31 804 151 36 3
NasdaqGS:CVTI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 720 89 60
2017-12-31 705 83 55
2017-09-30 693 83 12
2017-06-30 679 84 10
2017-03-31 673 82 12
2016-12-31 671 102 17
2016-09-30 688 89 24
2016-06-30 697 93 29
2016-03-31 713 101 36
2015-12-31 724 85 42
2015-09-30 723 104 42
2015-06-30 727 106 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Covenant Transportation Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Covenant Transportation Group's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CVTI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Covenant Transportation Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CVTI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31 2.39 2.60 2.20 5.00
2018-12-31 1.99 2.06 1.90 5.00
NasdaqGS:CVTI Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 3.27
2017-12-31 3.03
2017-09-30 0.66
2017-06-30 0.57
2017-03-31 0.68
2016-12-31 0.93
2016-09-30 1.33
2016-06-30 1.59
2016-03-31 2.00
2015-12-31 2.32
2015-09-30 2.40
2015-06-30 2.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Covenant Transportation Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Covenant Transportation Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Covenant Transportation Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CVTI Past Performance

  How has Covenant Transportation Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Covenant Transportation Group's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Covenant Transportation Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Covenant Transportation Group's 1-year earnings growth exceeds its 5-year average (381.3% vs 40%)
  • Covenant Transportation Group's earnings growth has exceeded the US Transportation industry average in the past year (381.3% vs 43.9%).
Earnings and Revenue History
Covenant Transportation Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Covenant Transportation Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CVTI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 719.83 59.90 48.32
2017-12-31 705.01 55.44 47.04
2017-09-30 692.68 12.12 49.16
2017-06-30 678.55 10.36 49.52
2017-03-31 673.05 12.44 48.55
2016-12-31 670.65 16.84 47.01
2016-09-30 687.74 24.08 46.37
2016-06-30 696.75 28.84 43.35
2016-03-31 713.37 36.21 41.47
2015-12-31 724.24 42.09 45.92
2015-09-30 722.97 42.40 46.75
2015-06-30 727.04 36.63 50.00
2015-03-31 725.24 29.41 53.58
2014-12-31 718.98 17.81 49.04
2014-09-30 688.68 7.60 45.50
2014-06-30 681.94 7.72 44.27
2014-03-31 680.78 5.83 44.00
2013-12-31 684.55 5.24 46.31
2013-09-30 685.56 3.36 48.57
2013-06-30 683.14 2.39 49.68
2013-03-31 681.95 4.75 47.81
2012-12-31 674.25 6.07 49.20
2012-09-30 658.71 2.37 59.57
2012-06-30 651.70 -9.85 55.49
2012-03-31 653.27 -12.44 56.71
2011-12-31 652.63 -14.27 51.51
2011-09-30 654.62 -11.33 35.95
2011-06-30 658.02 1.77 36.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Covenant Transportation Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Covenant Transportation Group used its assets more efficiently than the US Transportation industry average last year based on Return on Assets.
  • Covenant Transportation Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Covenant Transportation Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Covenant Transportation Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CVTI Health

 How is Covenant Transportation Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Covenant Transportation Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Covenant Transportation Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Covenant Transportation Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Covenant Transportation Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Covenant Transportation Group Company Filings, last reported 2 months ago.

NasdaqGS:CVTI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 301.69 213.90 38.37
2017-12-31 295.20 213.80 15.36
2017-09-30 244.39 219.83 8.28
2017-06-30 237.17 207.37 18.69
2017-03-31 235.35 205.18 7.25
2016-12-31 236.41 215.83 7.75
2016-09-30 225.40 223.17 5.03
2016-06-30 219.79 206.24 8.43
2016-03-31 207.10 188.06 3.69
2015-12-31 202.16 250.03 4.49
2015-09-30 194.06 236.45 14.02
2015-06-30 196.01 163.63 23.77
2015-03-31 180.76 170.43 16.29
2014-12-31 169.20 202.33 21.33
2014-09-30 102.50 223.21 17.23
2014-06-30 103.04 231.50 19.35
2014-03-31 97.91 232.12 19.92
2013-12-31 100.36 235.48 9.26
2013-09-30 96.00 197.14 10.53
2013-06-30 93.18 182.27 9.05
2013-03-31 92.71 175.11 8.55
2012-12-31 94.67 174.94 6.85
2012-09-30 94.03 172.08 7.66
2012-06-30 89.24 188.80 4.39
2012-03-31 88.65 215.49 3.81
2011-12-31 87.06 242.51 3.90
2011-09-30 87.82 232.57 3.38
2011-06-30 100.41 216.54 2.28
  • Covenant Transportation Group's level of debt (70.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (189% vs 70.9% today).
  • Debt is well covered by operating cash flow (41.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
X
Financial health checks
We assess Covenant Transportation Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Covenant Transportation Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CVTI Dividends

 What is Covenant Transportation Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Covenant Transportation Group dividends.
If you bought $2,000 of Covenant Transportation Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Covenant Transportation Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Covenant Transportation Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CVTI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Transportation Industry Average Dividend Yield Market Cap Weighted Average of 52 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5932 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CVTI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Covenant Transportation Group has not reported any payouts.
  • Unable to verify if Covenant Transportation Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Covenant Transportation Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Covenant Transportation Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Covenant Transportation Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Covenant Transportation Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Covenant Transportation Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CVTI Management

 What is the CEO of Covenant Transportation Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Parker, image provided by Google.
David Parker
COMPENSATION $1,099,599
AGE 59
TENURE AS CEO 24.4 years
CEO Bio

Mr. David Ray Parker has been the Chairman and Chief Executive Officer of Covenant Transportation Group, Inc. since 1994. Mr. Parker served as the President of Covenant Transportation Group, Inc. since founding it in 1985 until February 18, 2016. Mr. Parker was elected to the Board of Directors of the Truckload Carriers' Association in 1994. He has been a Director of Covenant Transportation Group, Inc. since 1985. Mr. Parker is a member of the American Trucking Associations' Board of Directors. From 2012 to October 2017, Mr. Parker served as a member of the Trade and Transportation Advisory Council of the Federal Reserve Bank of Atlanta. Mr. Parker has also served as a director or in similar capacities of several religious and civic organizations and serves as general partner of the Parker Limited Family Partnership.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Covenant Transportation Group management team in years:

5.9
Average Tenure
55
Average Age
  • The average tenure for the Covenant Transportation Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Parker

TITLE
Chairman of the Board & CEO
COMPENSATION
$1M
AGE
59
TENURE
24.4 yrs

Joey Hogan

TITLE
President
COMPENSATION
$749K
AGE
55
TENURE
2.3 yrs

Richard Cribbs

TITLE
Executive VP & CFO
COMPENSATION
$458K
AGE
45
TENURE
10.1 yrs

Sam Hough

TITLE
Executive VP & COO of CTI
COMPENSATION
$517K
AGE
51
TENURE
5.3 yrs

Paul Newbourne

TITLE
Executive VP & COO of Solutions
COMPENSATION
$471K
AGE
62
TENURE
1.7 yrs

M. Bunn

TITLE
Chief Accounting Officer
AGE
39
TENURE
6.4 yrs

Jamie Heartfield

TITLE
Chief Human Resources Officer & General Counsel
AGE
52
TENURE
9.2 yrs

R. Lovin

TITLE
Executive Vice President
COMPENSATION
$420K
AGE
65
TENURE
11.1 yrs

Jim Brower

TITLE
Executive VP & COO of Star Transportation Inc
COMPENSATION
$492K
AGE
60
TENURE
2.3 yrs

Rick Reinoehl

TITLE
Senior Vice President of Risk Management
TENURE
5.4 yrs
Board of Directors Tenure

Average tenure and age of the Covenant Transportation Group board of directors in years:

15.4
Average Tenure
60
Average Age
  • The average tenure for the Covenant Transportation Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

David Parker

TITLE
Chairman of the Board & CEO
COMPENSATION
$1M
AGE
59
TENURE
24.4 yrs

William Alt

TITLE
Director
COMPENSATION
$89K
AGE
80
TENURE
24.4 yrs

Robert Bosworth

TITLE
Lead Independent Director
COMPENSATION
$88K
AGE
69

Brad Moline

TITLE
Independent Director
COMPENSATION
$84K
AGE
50
TENURE
15.4 yrs

Herb Schmidt

TITLE
Director
COMPENSATION
$199K
AGE
61
TENURE
4.7 yrs

Miller Welborn

TITLE
Director
COMPENSATION
$72K
AGE
58
TENURE
1.1 yrs
Recent Insider Trading
  • Covenant Transportation Group insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Covenant Transportation Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Covenant Transportation Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CVTI News

External News
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Simply Wall St News

Why Covenant Transportation Group Inc (NASDAQ:CVTI) Is An Attractive Stock On Right Now

Covenant Transportation Group Inc (NASDAQ:CVTI) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of CVTI, it

Simply Wall St -

Is Covenant Transportation Group Inc's (NASDAQ:CVTI) Balance Sheet Strong Enough To Weather A Storm?

On top of this, CVTI has produced cash from operations of US$82.85M over the same time period, leading to an operating cash to total debt ratio of 38.75%, indicating that CVTI’s debt is appropriately covered by operating cash. … We can check to see whether CVTI is able to meet its debt obligations by looking at the net interest coverage ratio. … In CVTI's, case, the ratio of 3.52x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: CVTI’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Will Covenant Transportation Group Inc (NASDAQ:CVTI) Continue To Underperform Its Industry?

Covenant Transportation Group Inc’s (NASDAQ:CVTI) most recent return on equity was a substandard 5.16% relative to its industry performance of 9.67% over the past year. … See our latest analysis for Covenant Transportation Group Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Covenant Transportation Group’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Covenant Transportation Group’s equity capital deployed.

Simply Wall St -

CVTI Company Info

Map
Description

Covenant Transportation Group, Inc., together with its subsidiaries, provides truckload transportation and brokerage services primarily in the continental United States. It offers long haul, dedicated, temperature-controlled, and regional solo-driver services; long haul, regional, dedicated, and intermodal temperature-controlled services; and regional solo-driver and dedicated services. The company also provides ancillary services, including freight brokerage services and accounts receivable factoring. It serves transportation companies, such as 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, 2017, the company operated 2,559 tractors and 7,134 trailers. Covenant Transportation Group, Inc. was founded in 1986 and is headquartered in Chattanooga, Tennessee.

Details
Name: Covenant Transportation Group, Inc.
CVTI
Exchange: NasdaqGS
Founded: 1986
$589,343,225
18,331,049
Website: http://www.ctgcompanies.com
Address: Covenant Transportation Group, Inc.
400 Birmingham Highway,
Chattanooga,
Tennessee, 37419,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CVTI Class A Common Stock Nasdaq Global Select US USD 28. Oct 1994
DB CV5 Class A Common Stock Deutsche Boerse AG DE EUR 28. Oct 1994
Number of employees
Current staff
Staff numbers
4,300
Covenant Transportation Group employees.
Industry
Trucking
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/06/20 21:25
End of day share price update: 2018/06/19 00:00
Last estimates confirmation: 2018/06/06
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.