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Covenant Logistics Group (Covenant Logistics Group) Piotroski F-Score : 4 (As of Apr. 27, 2024)


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What is Covenant Logistics Group Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Covenant Logistics Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Covenant Logistics Group's Piotroski F-Score or its related term are showing as below:

CVLG' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Covenant Logistics Group was 9. The lowest was 3. And the median was 6.


Covenant Logistics Group Piotroski F-Score Historical Data

The historical data trend for Covenant Logistics Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Covenant Logistics Group Piotroski F-Score Chart

Covenant Logistics Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 5.00 9.00 8.00 4.00

Covenant Logistics Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 4.00 4.00 -

Competitive Comparison of Covenant Logistics Group's Piotroski F-Score

For the Trucking subindustry, Covenant Logistics Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Covenant Logistics Group's Piotroski F-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Covenant Logistics Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Covenant Logistics Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 16.635 + 12.293 + 13.506 + 12.795 = $55 Mil.
Cash Flow from Operations was 7.248 + 5.12 + 40.605 + 31.868 = $85 Mil.
Revenue was 266.851 + 274.016 + 288.721 + 273.985 = $1,104 Mil.
Gross Profit was 38.901 + 38.146 + 44.022 + 43.133 = $164 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(796.645 + 764.855 + 870.506 + 892.158 + 954.438) / 5 = $855.7204 Mil.
Total Assets at the begining of this year (Dec22) was $797 Mil.
Long-Term Debt & Capital Lease Obligation was $233 Mil.
Total Current Assets was $186 Mil.
Total Current Liabilities was $170 Mil.
Net Income was 22.167 + 24.526 + 50.486 + 11.503 = $109 Mil.

Revenue was 291.585 + 317.377 + 311.839 + 296.057 = $1,217 Mil.
Gross Profit was 45.703 + 52.336 + 49.063 + 38.884 = $186 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(651.662 + 660.069 + 701.018 + 756.716 + 796.645) / 5 = $713.222 Mil.
Total Assets at the begining of last year (Dec21) was $652 Mil.
Long-Term Debt & Capital Lease Obligation was $137 Mil.
Total Current Assets was $223 Mil.
Total Current Liabilities was $156 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Covenant Logistics Group's current Net Income (TTM) was 55. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Covenant Logistics Group's current Cash Flow from Operations (TTM) was 85. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=55.229/796.645
=0.06932699

ROA (Last Year)=Net Income/Total Assets (Dec21)
=108.682/651.662
=0.16677664

Covenant Logistics Group's return on assets of this year was 0.06932699. Covenant Logistics Group's return on assets of last year was 0.16677664. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Covenant Logistics Group's current Net Income (TTM) was 55. Covenant Logistics Group's current Cash Flow from Operations (TTM) was 85. ==> 85 > 55 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=233.082/855.7204
=0.27238103

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=137.227/713.222
=0.19240433

Covenant Logistics Group's gearing of this year was 0.27238103. Covenant Logistics Group's gearing of last year was 0.19240433. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=185.945/170.291
=1.091925

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=222.656/156.121
=1.42617585

Covenant Logistics Group's current ratio of this year was 1.091925. Covenant Logistics Group's current ratio of last year was 1.42617585. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Covenant Logistics Group's number of shares in issue this year was 14.119. Covenant Logistics Group's number of shares in issue last year was 14.471. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=164.202/1103.573
=0.14879124

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=185.986/1216.858
=0.15284117

Covenant Logistics Group's gross margin of this year was 0.14879124. Covenant Logistics Group's gross margin of last year was 0.15284117. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=1103.573/796.645
=1.38527575

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1216.858/651.662
=1.86731465

Covenant Logistics Group's asset turnover of this year was 1.38527575. Covenant Logistics Group's asset turnover of last year was 1.86731465. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Covenant Logistics Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Covenant Logistics Group  (NAS:CVLG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Covenant Logistics Group Piotroski F-Score Related Terms

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Covenant Logistics Group (Covenant Logistics Group) Business Description

Traded in Other Exchanges
Address
400 Birmingham Highway, Chattanooga, TN, USA, 37419
Covenant Logistics Group Inc together with its wholly-owned subsidiaries offers truckload transportation and freight brokerage services to customers throughout the continental United States. The company's reportable segments include Expedited, Dedicated Services, Managed Freight and Warehousing. Expedited segment provides truckload services to customers with high service freight and delivery standards. Dedicated segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length. Managed Freight segment includes brokerage services and TMS. Warehousing segment provides day-to-day warehouse management services to customers who have chosen to outsource this function. Majority of revenue is generated from expedited segment.
Executives
Joey B Hogan officer: Exec Vice President and CFO 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Wesley Miller Welborn director 6401 LEE HIGHWAY, STE B, CHATTANOOGA TN 37421
Benjamin Sr Carson director PO BOX 3599, BATTLE CREEK MI 49016-3599
Samuel F Hough officer: EVP - Expedited 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Lynn Doster officer: EVP - Dedicated & Warehousing 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Paul Bunn officer: President, COO, and Secretary COVENANT TRANSPORTATION GROUP, INC., 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Rachel Parker-hatchett director 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Herbert J Schmidt director 1950 LAKE RIDGE DRIVE, THE VILLAGES FL 32162
Grant James S Iii officer: EVP and CFO 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Joey Ballard officer: EVP, People and Safety 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
D Michael Kramer director P O BOX 868, EVANSVILLE IN 47705-0868
George S. Yates officer: SVP - Brokerage 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Tracy L. Rosser director 400 BIRMINGHAM HIGHWAY, CHATTANOOGA TN 37419
Bradley A Moline director 610 BROADWAY, IMPERIAL NE 69033
Robert E Bosworth director LIVINGSTON COMPANY & SOUTHPORT CAPITAL, ONE UNION SQUARE, SUITE 300, CHATTANOOGA TN 37402