Covenant Story

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CVLG -- USA Stock  

USD 20.10  0.69  3.55%

It looks as if Covenant Logistics may not have a good chance to recover from the latest dip as its shares fell again. This firm current daily volatility is 3.97 percent, with a beta of 0.57 and an alpha of -0.16 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to digest Covenant Logistics Group based on its technical indicators. What exactly are Covenant Logistics shareholders getting in February?
Published over a month ago
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Should we continue shadow Covenant Logistics (NASDAQ:CVLG) executives?
Covenant Logistics Group currently holds roughly 13.73 M in cash with 49.19 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.8. One of the ways to look at asset utilization of Covenant is to check how much profit was generated for every dollar of assets it reports. Covenant Logistics Group utilizes its assets nearly 0.88 percent, earning $0.0088 for each dollar of assets held by the firm. A positive asset utilization signifies that the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Covenant Logistics shows how effective it operates for each dollar spent on its assets.
Investing in Covenant Logistics, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Covenant Logistics along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Covenant Logistics' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Covenant Logistics in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Covenant Logistics. Your research has to be compared to or analyzed against Covenant Logistics' peers to derive any actionable benefits. When done correctly, Covenant Logistics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Covenant Logistics.

How important is Covenant Logistics's Liquidity

Covenant Logistics financial leverage refers to using borrowed capital as a funding source to finance Covenant Logistics Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Covenant Logistics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Covenant Logistics's total debt and its cash.

How Covenant utilizes its cash?

To perform a cash flow analysis of Covenant Logistics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Covenant Logistics is receiving and how much cash it distributes out in a given period. The Covenant Logistics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Covenant Logistics Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 73.64 Million

Covenant Logistics Correlation with Peers

Investors in Covenant can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Covenant Logistics Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Covenant Logistics and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Covenant is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Covenant for more details

Breaking it down a bit more

Covenant Logistics secures Sharpe Ratio (or Efficiency) of -0.0164, which signifies that the company had -0.0164% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Covenant Logistics Group exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Covenant Logistics mean deviation of 2.8, and Risk Adjusted Performance of (0.00464) to double-check the risk estimate we provide.
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0.480.440.50.59
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Is Covenant showing appearance of lower volatility?

Latest total risk alpha is at -0.78. Covenant Logistics Group exhibits very low volatility with skewness of -0.12 and kurtosis of 2.1. However, we advise investors to further study Covenant Logistics Group technical indicators to make sure all market info is available and is reliable.

Our Final Take On Covenant Logistics

Although some companies in the trucking industry are either recovering or due for a correction, Covenant may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 24th of January 2021, our final 30 days 'Buy-vs-Sell' recommendation on the firm is Hold. We believe Covenant Logistics is undervalued with close to average odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Covenant Logistics Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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