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Covenant Transportation Group

Nasdaq:CVTI
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CVTI
Nasdaq
$269M
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 75 days ago. More info.


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  • Covenant Transportation Group has significant price volatility in the past 3 months.
CVTI Share Price and Events
7 Day Returns
0%
NasdaqGS:CVTI
-1.6%
US Transportation
-0.9%
US Market
1 Year Returns
-49.2%
NasdaqGS:CVTI
8.7%
US Transportation
3.8%
US Market
CVTI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Covenant Transportation Group (CVTI) 0% 8.8% -26.1% -49.2% -28% 21%
US Transportation -1.6% 0.4% -2.3% 8.7% 74.9% 69.4%
US Market -0.9% 1.1% 1.1% 3.8% 35.5% 42.1%
1 Year Return vs Industry and Market
  • CVTI underperformed the Transportation industry which returned 8.7% over the past year.
  • CVTI underperformed the Market in United States of America which returned 3.8% over the past year.
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 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 2.7%
Equity Risk Premium S&P Global 6%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.962 (1 + (1- 21%) (114.88%))
1.559
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.56
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.559 * 5.96%)
12.02%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CVTI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.02%)
2020 24.90 Analyst x1 22.23
2021 24.15 Est @ -3% 19.25
2022 23.84 Est @ -1.28% 16.96
2023 23.82 Est @ -0.08% 15.13
2024 24.01 Est @ 0.76% 13.61
2025 24.33 Est @ 1.35% 12.31
2026 24.76 Est @ 1.77% 11.19
2027 25.27 Est @ 2.06% 10.19
2028 25.84 Est @ 2.26% 9.30
2029 26.46 Est @ 2.4% 8.50
Present value of next 10 years cash flows $138.66
NasdaqGS:CVTI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $26.46 × (1 + 2.73%) ÷ (12.02% – 2.73%)
$292.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $292.53 ÷ (1 + 12.02%)10
$94.00
NasdaqGS:CVTI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $138.66 + $94.00
$232.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $232.66 / 18.37
$12.67
NasdaqGS:CVTI Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.67
Current discount Discount to share price of $14.65
= -1 x ($14.65 - $12.67) / $12.67
-15.7%

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

  • The current share price of Covenant Transportation Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 (2019-03-31) in USD $2.32
NasdaqGS:CVTI Share Price ** NasdaqGS (2019-07-23) in USD $14.65
United States of America Transportation Industry PE Ratio Median Figure of 24 Publicly-Listed Transportation Companies 17.16x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.8x

* 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)

= 14.65 ÷ 2.32

6.32x

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 6.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-18.1%per year
United States of America Transportation Industry PEG Ratio Median Figure of 22 Publicly-Listed Transportation Companies 1.79x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.58x

*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

= 6.32x ÷ -18.1%

-0.35x

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 (2019-03-31) in USD $18.93
NasdaqGS:CVTI Share Price * NasdaqGS (2019-07-23) in USD $14.65
United States of America Transportation Industry PB Ratio Median Figure of 27 Publicly-Listed Transportation Companies 1.8x
United States of America Market PB Ratio Median Figure of 5,249 Publicly-Listed Companies 1.78x
NasdaqGS:CVTI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 14.65 ÷ 18.93

0.77x

* 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 good value 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 3/6, 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 4 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
-18.1%
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 2.7%.
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 positive but not above 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 4 Analysts -18.1%
NasdaqGS:CVTI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 1.6%
United States of America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
United States of America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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 (3 months ago) See Below
Future Estimates Average of up to 4 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
2020-12-31 953 117 28 4
2019-12-31 934 140 28 4
NasdaqGS:CVTI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 931 97 43
2018-12-31 885 125 43
2018-09-30 816 122 75
2018-06-30 752 99 68
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

*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 1.6% 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 (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Covenant Transportation Group Company Filings, last reported 3 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
2020-12-31 1.50 1.80 1.20 3.00
2019-12-31 1.48 1.65 1.35 3.00
NasdaqGS:CVTI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.32
2018-12-31 2.32
2018-09-30 4.11
2018-06-30 3.73
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

*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 0/6, 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 is negative, it can't be compared to the 5-year average.
  • Covenant Transportation Group's 1-year earnings growth is negative, it can't be compared to the US Transportation industry average.
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 3 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
2019-03-31 931.07 42.52 69.90
2018-12-31 885.46 42.50 64.76
2018-09-30 816.49 75.30 59.01
2018-06-30 751.82 68.32 53.27
2018-03-31 719.83 59.90 49.22
2017-12-31 705.01 55.44 47.94
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

*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 less efficiently than the US Transportation industry average last year based on Return on Assets.
  • Covenant Transportation Group's use of capital deteriorated last year versus 3 years ago (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 1/6, 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 3 months ago.

NasdaqGS:CVTI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 347.74 229.84 31.00
2018-12-31 343.14 195.35 23.13
2018-09-30 326.15 196.68 19.61
2018-06-30 313.55 228.49 122.15
2018-03-31 301.69 189.97 38.37
2017-12-31 295.20 189.06 15.36
2017-09-30 244.39 194.37 8.28
2017-06-30 237.17 185.43 18.69
2017-03-31 235.35 182.62 7.25
2016-12-31 236.41 193.62 7.75
2016-09-30 225.40 207.74 5.03
2016-06-30 219.79 192.54 8.43
2016-03-31 207.10 173.92 3.69
2015-12-31 202.16 235.45 4.49
2015-09-30 194.06 221.44 14.02
2015-06-30 196.01 148.19 23.77
2015-03-31 180.76 154.56 16.29
2014-12-31 169.20 187.36 21.33
2014-09-30 102.50 205.57 17.23
2014-06-30 103.04 211.05 19.35
2014-03-31 97.91 210.93 19.92
2013-12-31 100.36 213.56 9.26
2013-09-30 96.00 181.02 10.53
2013-06-30 93.18 167.21 9.05
2013-03-31 92.71 159.53 8.55
2012-12-31 94.67 158.85 6.85
2012-09-30 94.03 155.48 7.66
  • Covenant Transportation Group's level of debt (77.3%) 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 (236.9% vs 77.3% today).
  • Debt is well covered by operating cash flow (36.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.5x 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 4 Analyst Estimates (S&P Global) See Below
United States of America Transportation Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

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
2020-12-31
2019-12-31

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
COMPENSATION $1,968,085
AGE 61
TENURE AS CEO 25.5 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% whilst company earnings have fallen more than 20% in the past year.
  • David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

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

6.5
Average Tenure
54
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
$2M
AGE
61
TENURE
25.5 yrs

Joey Hogan

TITLE
President & COO
COMPENSATION
$1M
AGE
57
TENURE
3.4 yrs

Richard Cribbs

TITLE
Executive VP
COMPENSATION
$763K
AGE
47
TENURE
11.2 yrs

T. Rogers

TITLE
Executive VP & Chief Transformation Officer
COMPENSATION
$989K
AGE
43
TENURE
1.5 yrs

John Tweed

TITLE
Executive VP & COO of Landair Holdings Inc.
COMPENSATION
$1M
AGE
53

M. Bunn

TITLE
Executive VP & Chief Administrative Officer
AGE
41
TENURE
0.3 yrs

Jamie Heartfield

TITLE
Chief Human Resources Officer & General Counsel
AGE
54
TENURE
10.3 yrs

R. Lovin

TITLE
Executive Vice President
COMPENSATION
$420K
AGE
67
TENURE
12.2 yrs

Jim Brower

TITLE
Executive VP & COO of Star Transportation Inc.
COMPENSATION
$492K
AGE
62
TENURE
3.4 yrs

Rick Reinoehl

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

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

16.5
Average Tenure
62
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
$2M
AGE
61
TENURE
25.5 yrs

William Alt

TITLE
Director
COMPENSATION
$138K
AGE
82
TENURE
25.5 yrs

Robert Bosworth

TITLE
Lead Independent Director
COMPENSATION
$147K
AGE
71

Miller Welborn

TITLE
Director
COMPENSATION
$136K
AGE
60
TENURE
2.2 yrs

Brad Moline

TITLE
Independent Director
COMPENSATION
$135K
AGE
52
TENURE
16.5 yrs

Herb Schmidt

TITLE
Director
COMPENSATION
$219K
AGE
63
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Covenant Transportation Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. Jun 19 Buy Robert Bosworth Individual 31. May 19 31. May 19 5,000 $15.00 $75,000
14. Nov 18 Buy John Tweed Individual 12. Nov 18 14. Nov 18 18,659 $23.61 $439,706
08. Aug 18 Sell William Alt Individual 06. Aug 18 06. Aug 18 -1,709 $29.75 $-50,840
X
Management checks
We assess Covenant Transportation Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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

Simply Wall St News

Is There Now An Opportunity In Covenant Transportation Group, Inc. (NASDAQ:CVTI)?

It’s trading around 16.38% above my intrinsic value, which means if you buy Covenant Transportation Group today, you’d be paying a relatively reasonable price for it. … This is because Covenant Transportation Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … If you are no longer interested in Covenant Transportation Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Those Who Purchased Covenant Transportation Group (NASDAQ:CVTI) Shares A Year Ago Have A 56% Loss To Show For It

Check out our latest analysis for Covenant Transportation Group While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … A Different Perspective While the broader market gained around 7.2% in the last year, Covenant Transportation Group shareholders lost 56%.

Simply Wall St -

How Much Did Covenant Transportation Group, Inc.'s (NASDAQ:CVTI) CEO Pocket Last Year?

View our latest analysis for Covenant Transportation Group How Does David Parker's Compensation Compare With Similar Sized Companies? … We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m. … We compared total CEO remuneration at Covenant Transportation Group, Inc.

Simply Wall St -

Is Covenant Transportation Group, Inc. (NASDAQ:CVTI) Investing Your Capital Efficiently?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Covenant Transportation Group: 0.085 = US$60m ÷ (US$836m - US$133m) (Based on the trailing twelve months to March 2019.) So, Covenant Transportation Group has an ROCE of 8.5%. … What Are Current Liabilities, And How Do They Affect Covenant Transportation Group's ROCE? … Covenant Transportation Group has total assets of US$836m and current liabilities of US$133m.

Simply Wall St -

What Does Covenant Transportation Group, Inc.'s (NASDAQ:CVTI) Balance Sheet Tell Us About It?

CVTI’s Debt (And Cash Flows) CVTI has built up its total debt levels in the last twelve months, from US$214m to US$309m – this includes long-term debt. … On top of this, CVTI has generated cash from operations of US$97m in the last twelve months, resulting in an operating cash to total debt ratio of 31%, indicating that CVTI’s current level of operating cash is high enough to cover debt. … 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 -

How Good Is Covenant Transportation Group, Inc. (NASDAQ:CVTI), When It Comes To ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Covenant Transportation Group: 12% = US$43m ÷ US$348m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Covenant Transportation Group Have A Good Return On Equity? … Combining Covenant Transportation Group's Debt And Its 12% Return On Equity While Covenant Transportation Group does have some debt, with debt to equity of just 0.89, we wouldn't say debt is excessive.

Simply Wall St -

Do You Like Covenant Transportation Group, Inc. (NASDAQ:CVTI) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Covenant Transportation Group, Inc.'s (NASDAQ:CVTI) P/E ratio and reflect on what it tells us about the company's share price. … Covenant Transportation Group has a price to earnings ratio of 8.93, based on the last twelve months.

Simply Wall St -

Is It Time To Consider Buying Covenant Transportation Group, Inc. (NASDAQ:CVTI)?

(NASDAQ:CVTI), which is in the transportation business, and is based in United States,. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Covenant Transportation Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Does Covenant Transportation Group, Inc. (NASDAQ:CVTI) Have A High Beta?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Have Insiders Been Selling Covenant Transportation Group, Inc. (NASDAQ:CVTI) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Covenant Transportation Group, Inc. … Covenant Transportation Group Insider Transactions Over The Last Year. … In total, Covenant Transportation Group insiders sold more than they bought over the last year

Simply Wall St -

CVTI Company Info

Description

Covenant Transportation Group, Inc., together with its subsidiaries, provides truckload transportation and brokerage services primarily in the continental United States. It offers expedited and dedicated services. The company also provides ancillary services, including freight brokerage and logistics services, warehousing, and accounts receivable factoring; and over-the-road truckload services, as well as transportation management, shuttle, and switching services. 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, 2018, the company operated 3,154 tractors and 6,950 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
$269,098,715
18,368,513
Website: http://www.covenanttransport.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
5,500
Covenant Transportation Group employees.
Industry
Trucking
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 01:36
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.