Last Updated: 08 Nov 2024
Executive Summary
Commercial Vehicle Group Inc. (CVGI) is a manufacturer of components and assemblies for the global vehicle and technology integrator markets. With a market capitalization of $88.31 million, the company has a strong financial position with an EBITDA of $45.59 million and a trailing PE ratio of 3.325. The latest stock price of $2.56 is below the analyst target price of $6.67, indicating potential upside for investors.
Company Overview
CVGI designs, manufactures, and sells a wide range of products, including suspension systems, brake components, and driveline components. The company operates in North America, Europe, and the Asia-Pacific regions, with headquarters in New Albany, Ohio. CVGI's customer base includes major vehicle manufacturers and technology integrators.
Fundamental Analysis
Revenue: CVGI reported revenue of $912.99 million for the trailing twelve months (TTM), with a quarterly revenue growth of -0.153% year-over-year (YOY).
Earnings: The company's diluted EPS was $0.77 for the TTM, with quarterly earnings growth of 0.286% YOY.
Profitability: CVGI's profit margin is 3.74%, while its operating margin is 1.68%. The return on assets (ROA) is 3.46%, and the return on equity (ROE) is 17%.
Valuation: The trailing PE ratio of 3.325 is attractive compared to industry peers. The price-to-sales (P/S) ratio of 0.0967 and the price-to-book (P/B) ratio of 0.493 also indicate potential undervaluation.
Technical Analysis
Trend: The stock price is currently below the 50-day and 200-day moving averages, indicating a downtrend.
Support and Resistance: The stock has support at $2.11 and resistance at $7.34.
Momentum: The relative strength index (RSI) is below 50, indicating bearish momentum.
Short Term Outlook
In the short term, CVGI's stock price is expected to remain range-bound between $2.11 and $3.183. The company's weak revenue growth and low profitability may continue to weigh on the stock. However, the attractive valuation and potential for a rebound in the automotive industry could provide some support.
Long Term Outlook
In the long term, CVGI has the potential to benefit from the growing demand for commercial vehicles and the increasing adoption of electric vehicles. The company's focus on innovation and its strong customer relationships should drive future growth. However, the competitive landscape and cyclical nature of the automotive industry pose potential risks.
Analyst Recommendations
Strong Buy: 1
Buy: 1
Hold: 0
Sell: 0
Strong Sell: 0
The majority of analysts have a positive outlook on CVGI, with one rating it a "Strong Buy" and one rating it a "Buy." The analyst target price of $6.67 implies a potential upside of over 160% from the current stock price.
