Commercial Vehicle Group, Inc. (NASDAQ: CVGI)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001290900
Market Cap 57.23 Mn
P/B 0.42
P/E -1.04
P/S 0.09
ROIC (Qtr) -1.78
Div Yield % 0.00
Rev 1y % (Qtr) -11.23
Total Debt (Qtr) 112.42 Mn
Debt/Equity (Qtr) 0.82

About

Commercial Vehicle Group, Inc. (CVGI) is a prominent player in the commercial vehicle market, electric vehicle market, and industrial automation markets, with a strong presence in the global arena. The company operates through four key segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. CVGI's primary business activities revolve around the design, manufacture, and sale of a diverse range of products. These include seats, plastic components, electrical wire harnesses, and industrial automation systems,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 31.33M provide 6.07x coverage of short-term debt 5.16M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 396.77M provides 3.53x coverage of total debt 112.42M, indicating robust asset backing and low credit risk.
  • Tangible assets of 396.77M provide robust 9.87x coverage of other current liabilities 40.22M, indicating strong asset backing.
  • Strong tangible asset base of 396.77M provides 113.62x coverage of intangibles 3.49M, indicating robust asset quality.
  • Strong tangible asset base of 396.77M provides 18.03x coverage of acquisition spending 22M, enabling strategic growth.

Bear case

  • Operating cash flow of 5.74M barely covers its investment activities of 11M, with a coverage ratio of 0.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 31.33M against inventory of 123.05M, the 0.25 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 31.33M provide limited coverage of acquisition spending of 22M, which is 1.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 5.74M shows concerning coverage of stock compensation expenses of 3.71M, with a 1.55 ratio indicating potential earnings quality issues.
  • Operating earnings of (10.68M) show weak coverage of depreciation charges of 14.71M, with a -0.73 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.34 1.16
EV to Cash from Ops. EV/CFO 23.40 9.30
EV to Debt EV to Debt 1.19 34.64
EV to EBIT EV/EBIT -12.57 4.45
EV to EBITDA EV/EBITDA 12.69 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -25.50 17.25
EV to Market Cap EV to Market Cap 2.35 1.58
EV to Revenue EV/Rev 0.20 3.42
Price to Book Value [P/B] P/B 0.42 -0.33
Price to Earnings [P/E] P/E -1.04 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) -0.97 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 24.59 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.43 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -143.59 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -60.35 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -151.37 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -289.45 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -258.25 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 59.93 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -21.30 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.64 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.28 0.69
Current Ratio Curr Ratio (Qtr) 2.46 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.82 0.22
Interest Cover Ratio Int Coverage (Qtr) -0.97 -110.44
Times Interest Earned Times Interest Earned (Qtr) -0.97 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.60 -952.44
EBIT Margin % EBIT Margin % (Qtr) -1.62 -997.37
EBT Margin % EBT Margin % (Qtr) -3.31 -987.56
Gross Margin % Gross Margin % (Qtr) 10.10 -122.43
Net Profit Margin % Net Margin % (Qtr) -8.30 -979.78