Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Covenant Logistics Group's
Operating Income
for the
three
months ended in Mar. 2026 was €6 Mil. Covenant Logistics Group's Interest Expense for the
three
months ended in Mar. 2026 was €-3 Mil.
Covenant Logistics Group's interest coverage for the quarter that ended in Mar. 2026 was 1.70.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Covenant Logistics Group's Interest Coverage or its related term are showing as below:
FRA:CV5'
s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 3.68 Max: 26.07
Current: 1.46
FRA:CV5's Interest Coverage is ranked worse than 86.28% of 838
companies
in the Transportation industry
Industry Median: 5.72
vs FRA:CV5: 1.46
Covenant Logistics Group (FRA:CV5) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Covenant Logistics Group Interest Coverage Related Terms
Covenant Logistics Group Interest Coverage Historical Data
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:CV5 vs HTLD, MRTN, ULH: Interest Coverage Comparison
For the Trucking subindustry, Covenant Logistics Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Covenant Logistics Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Covenant Logistics Group's Interest Coverage falls into.
Covenant Logistics Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Covenant Logistics Group (FRA:CV5) has a Interest Coverage of 1.70 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Covenant Logistics Group and its competitors. This is 54% below median its historical median of 3.68. Over the past decade, Covenant Logistics Group's Interest Coverage has ranged from 0.71 to 26.07. According to the industry distribution chart, Covenant Logistics Group ranks #723 out of 838 companies in the Transportation industry, placing it in the top 86.3%.
Is Covenant Logistics Group's Interest Coverage too high?
Covenant Logistics Group's current Interest Coverage of 1.70 is 54% below median its 10-year median of 3.68. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 26.07. The Transportation industry median Interest Coverage is 5.72. Covenant Logistics Group's value of 1.70 is 70.3% below this industry median. Based on the distribution chart, Covenant Logistics Group ranks #723 out of 838 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Covenant Logistics Group has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Covenant Logistics Group's Interest Coverage compare to HTLD and MRTN?
According to the Transportation industry distribution chart, Covenant Logistics Group ranks #723 out of 838 companies for Interest Coverage. This places Covenant Logistics Group in the lower half of its industry. The industry median Interest Coverage is 5.72. Covenant Logistics Group's value of 1.70 is 70.3% below this benchmark. Historically, Covenant Logistics Group's own Interest Coverage has ranged from 0.71 to 26.07 over the past decade. While the company's 10-year median is 3.68 vs. the industry median of 5.72, Covenant Logistics Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covenant Logistics Group's current Interest Coverage of 1.70 is 70.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Covenant Logistics Group and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covenant Logistics Group's current Interest Coverage is 1.70, which is 54% below median its own 10-year median of 3.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covenant Logistics Group stock overvalued right now?
Covenant Logistics Group (FRA:CV5) has a current Interest Coverage of 1.70. The stock's GF Value™ is €22.87, compared to a current price of €38.00 — trading 66.2% above its estimated fair value. The current Interest Coverage is 1.70, which is 54% below median its 10-year median of 3.68 and 70.3% below the Transportation industry median of 5.72. Covenant Logistics Group's overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Covenant Logistics Group (FRA:CV5), the current Interest Coverage is 1.70 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Covenant Logistics Group (FRA:CV5) Overvalued in 2026?
Based on GuruFocus' analysis, Covenant Logistics Group stock appears to be overvalued.
The current stock price of €38.00 is trading 66.2% above its estimated GF Value™ of €22.87.
Key valuation signals for FRA:CV5:
Interest Coverage: 1.70 (54% below median its 10-year median of 3.68)
GF Value™: €22.87 vs. price of €38.00 (66.2% above fair value)
Industry Position: 70.3% below the Transportation median (#723 of 838)
No single metric tells the full story. See the FRA:CV5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The 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. The Managed Freight segment includes brokerage services and TMS. The warehousing segment provides day-to-day warehouse management services to customers who have chosen to outsource this function.
68GF Score
Get the complete analysis for FRA:CV5
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