Covenant Logistics Group, Inc.
- Open
- 44.03
- Day high
- 45.52
- Day low
- 43.65
- Prev close
- 44.18
- Volume
- 66K
- Mkt cap
- $1.1B
- P/E (TTM)
- 251.2
- EPS (TTM)
- $0.18
- P/B
- 2.8
- P/S
- 0.9
- Yield
- 0.62%
- Per share
- $0.28
- ▼Insiders net selling -$2.3M over the last 3 months (0 open-market buys, 7 sales)
- 🏛Institutions accumulating (13F)
Covenant Logistics Group, Inc. (CVLG) is a Industrials company listed on NYSE. The stock is up 75% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 7 sales (SEC Form 4).
Covenant Logistics Group, Inc. (CVLG) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CVLG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 24, 2026 | $0.35 | $0.26 | -25.7% | $307M | +6.6% |
| Jan 22, 2026 | $0.34 | $0.49 | +44.1% | $295M | +0.8% |
| Oct 22, 2025 | $0.45 | $0.44 | -2.2% | $297M | +5.1% |
| Jul 23, 2025 | $0.41 | $0.45 | +9.8% | $303M | +7.4% |
| Apr 23, 2025 | $0.32 | $0.32 | +0.0% | $269M | -6.6% |
| Jan 24, 2025 | $0.49 | $0.49 | -0.5% | $277M | -2.0% |
| Oct 23, 2024 | $0.54 | $0.55 | +1.9% | $288M | -4.0% |
| Jul 24, 2024 | $0.48 | $0.52 | +8.3% | $287M | -1.8% |
| Jan 23, 2024 | $0.53 | $0.54 | +1.9% | $274M | +0.1% |
| Oct 25, 2023 | $0.56 | $0.57 | +1.8% | $289M | -0.3% |
| Jul 26, 2023 | $0.43 | $0.54 | +25.6% | $274M | +1.5% |
| Apr 27, 2023 | $0.39 | $0.47 | +20.5% | $267M | +3.4% |
CVLG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 1, 2026 | Grant James S IIIofficer: EVP and CFO | Option | 17,764 | $7.88 |
| Jun 1, 2026 | BUNN PAULofficer: President | Option | 32,682 | $7.88 |
| Jun 1, 2026 | Ballard Joeyofficer: EVP, Chief People & Safety Off | Sell | 4,000 | $40.15 |
| Jun 1, 2026 | BUNN PAULofficer: President | Option | 12,682 | $7.88 |
| Jun 1, 2026 | Grant James S IIIofficer: EVP and CFO | Option | 18,030 | $7.88 |
| Jun 1, 2026 | BUNN PAULofficer: President | Option | 9,416 | $10.62 |
| Jun 1, 2026 | Grant James S IIIofficer: EVP and CFO | Tax | 10,430 | $39.55 |
| May 27, 2026 | BUNN PAULofficer: President | Option | 64,196 | $7.88 |
| May 27, 2026 | BUNN PAULofficer: President | Tax | 20,000 | $37.41 |
| May 27, 2026 | HOGAN JOEY Bdirector | Sell | 12,800 | $39.18 |
| May 27, 2026 | Ballard Joeyofficer: EVP, Chief People & Safety Off | Sell | 4,282 | $37.40 |
| May 27, 2026 | Ballard Joeyofficer: EVP, Chief People & Safety Off | Sell | 3,718 | $38.00 |
| May 15, 2026 | Rosser Tracy L.director | Grant | 4,382 | — |
| May 15, 2026 | Welborn Wesley Millerdirector | Grant | 4,382 | — |
| May 15, 2026 | HOGAN JOEY Bdirector | Grant | 4,382 | — |
Source: CVLG SEC Form 4 filings, latest Jun 1, 2026. For informational purposes only — not investment advice.
See the full CVLG insider & 13F page →Covenant Logistics Group, Inc. company profile
Overview
Covenant Logistics Group, Inc. (NASDAQ:CVLG) is a transportation and logistics services company founded in 1986 and headquartered in Chattanooga, Tennessee. Originally known as Covenant Transportation Group, the company went public in 1994 and rebranded to its current name in July 2020 to better reflect its expanded service offerings beyond traditional trucking. Over nearly four decades, Covenant has evolved from a regional trucking company into a diversified logistics provider serving customers across the United States through multiple business segments including expedited trucking, dedicated transportation, freight brokerage, and warehousing services.
Business
Covenant Logistics operates in the transportation and logistics industry, which forms the backbone of America's supply chain infrastructure. The company provides essential services that move goods from manufacturers to retailers and ultimately to consumers. The transportation industry is highly fragmented, with thousands of carriers ranging from single-truck owner-operators to large publicly traded companies. The company operates through four primary business segments: Expedited Segment (approximately 34% of freight revenue): This division provides premium truckload services with stringent delivery requirements, such as completing 1,000-mile trips within 22 hours or meeting 15-minute delivery windows. These services command higher rates due to their time-sensitive nature and specialized requirements. The segment operates around 850-875 tractors and serves customers who need guaranteed capacity and precise timing for their shipments. Dedicated Segment (approximately 28% of freight revenue): This business provides committed trucking capacity to specific customers over contracted periods, using equipment owned or leased by Covenant. Unlike traditional for-hire trucking where carriers serve multiple customers, dedicated services assign specific trucks and drivers to individual customers, providing them with predictable capacity and service levels. The company has been particularly focused on growing its specialized protein and poultry transportation business within this segment. Managed Freight Segment: This division operates as a freight broker, arranging transportation services by outsourcing customers' freight to third-party carriers. The segment also provides transport management services on a contractual basis for customers who prefer to outsource their entire logistics operations. This is an asset-light business model that generates revenue through commissions and service fees rather than owning trucks. Warehousing Segment: This segment provides day-to-day warehouse management services, including storage, handling, and distribution of customers' products. The division also offers shuttle and switching services for moving containers and trailers within warehouse facilities and distribution centers.
Revenue model
Covenant generates revenue through multiple business models across its segments. The Expedited and Dedicated segments operate on a traditional trucking model where the company owns or leases trucks and trailers, employs drivers, and charges customers based on mileage, time, or contracted rates. These asset-heavy segments generate revenue through freight rates that must cover driver wages, fuel costs, equipment depreciation, insurance, and maintenance while providing a profit margin. The Managed Freight segment operates on a brokerage model, earning commissions by matching customer freight with third-party carriers. This asset-light model generates revenue through the spread between what customers pay and what carriers charge, plus service fees for logistics management. The Warehousing segment generates revenue through storage fees, handling charges, and value-added services. Several factors significantly impact the company's margins and profitability. Fuel costs represent a major variable expense, though many contracts include fuel surcharges to mitigate this risk. Driver availability and wages directly affect operational capacity and costs, as the industry faces chronic driver shortages. Equipment utilization rates are crucial since fixed costs like truck payments and insurance must be covered regardless of miles driven. Freight market conditions heavily influence pricing power, with tight capacity markets allowing for higher rates while oversupplied markets pressure margins. Regulatory changes such as hours-of-service rules and electronic logging device mandates can impact productivity and costs. Economic cycles affect freight demand, with industrial production, consumer spending, and inventory levels driving shipping volumes. The company's specialized focus on niche markets like protein transportation provides some insulation from commodity freight market volatility, as these segments typically maintain more stable pricing and customer relationships.
Competitive moat
Covenant's competitive moat is moderate but not particularly strong, as the transportation industry is inherently commoditized with low barriers to entry. However, the company has developed several defensive characteristics that provide some protection against competition. The company's specialized focus on niche markets, particularly protein and poultry transportation, creates a modest moat. These specialized services require specific equipment, expertise, and regulatory compliance that generic carriers cannot easily replicate. Customer relationships in these segments tend to be stickier due to the specialized nature of the service and the importance of food safety and temperature control. Covenant's long-term dedicated contracts provide some revenue stability and customer retention, as switching costs for customers include the disruption of finding new carriers and onboarding processes. The company's safety record and operational reliability also serve as differentiators in an industry where service failures can be costly for customers. However, the company faces significant competitive pressures. The trucking industry has extremely low barriers to entry - individuals can start competing with just a commercial driver's license and access to a truck. Large customers often maintain relationships with multiple carriers to ensure capacity and competitive pricing. The proliferation of freight brokers and digital freight matching platforms has increased price transparency and competition. The company's moat is further challenged by cyclical industry dynamics where excess capacity can quickly erode pricing power. Economic downturns typically lead to freight volume declines while truck capacity remains relatively fixed, creating intense competitive pressure. Additionally, larger competitors with greater scale advantages and technology investments pose ongoing threats to market share and margins.
Risks & safety
Covenant's margin of safety appears adequate but not exceptional, with the company maintaining reasonable financial health despite industry challenges. • Liquidity and Debt: Cash position of $11.2 million (Q1 2025) with total debt-to-equity ratio of 0.63x. Net debt of approximately $237 million represents modest leverage at 1.5x EBITDA, which is manageable for the industry. • Cash Flow: Operating cash flow of $24.8 million in Q1 2025, though free cash flow was negative $8.6 million due to capital expenditures. Full year 2024 operating cash flow was strong at $123 million despite negative free cash flow of $30 million. • Valuation Metrics: Trading at P/E ratio of 22.4x (Q1 2025) and EV/EBITDA of 6.4x, which appears reasonable for a cyclical transportation company. Price-to-book ratio of 1.33x suggests modest premium to book value. • Current Ratio: 1.09x indicates tight but adequate short-term liquidity coverage. • Other Considerations: The company maintains a relatively young fleet (20-21 months average age) which reduces maintenance costs but requires ongoing capital investment. Cyclical nature of the business creates earnings volatility that could pressure financial metrics during downturns.
Recent development
Over the past few years, Covenant has executed several strategic initiatives to reposition itself for long-term growth and reduced cyclicality. The company's most significant move was the 2023 acquisition of Lew Thompson & Son Trucking, a 225-truck operation specializing in poultry transportation. This acquisition expanded Covenant's presence in the specialized protein transportation market, which management sees as less cyclical and more profitable than general freight. The company has been systematically exiting lower-margin, commoditized business while increasing its focus on specialized services. This strategic shift is evident in the dedicated segment's emphasis on protein and poultry transportation, where the company uses specialized equipment and maintains long-term customer relationships. Management has indicated potential to grow the protein business from 225 trucks to over 500 trucks over time. Fleet modernization has been another key focus, with the company maintaining one of the youngest fleets in its history at an average age of 20-21 months. This strategy reduces maintenance costs and improves fuel efficiency while enhancing the company's appeal to drivers in a tight labor market. The company has also been disciplined in capital allocation, conducting significant share repurchases (approximately 20% of outstanding stock in 2022) while maintaining modest leverage. Management continues to evaluate both organic growth opportunities and potential acquisitions in specialized transportation niches. Recent operational improvements include enhanced focus on safety and claims management, which directly impacts insurance costs and customer relationships. The company has also been working to optimize its network utilization, particularly in the expedited segment, to improve asset efficiency and profitability.
CVLG company profile · for informational purposes only — not investment advice.
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