Covenant Logistics Group Inc has recorded a loss in operating income at least once over the past 3 years.
Covenant Logistics Group (FRA:CV5) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Covenant Logistics Group Operating Margin % Related Terms
Covenant Logistics Group Operating Margin % 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.
FRA:CV5 vs HTLD, MRTN, ULH: Operating Margin % Comparison
For the Trucking subindustry, Covenant Logistics Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Covenant Logistics Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Covenant Logistics Group's Operating Margin % falls into.
Covenant Logistics Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Covenant Logistics Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 2.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Covenant Logistics Group and its competitors. This is 48% below median its historical median of 4.15. Over the past decade, Covenant Logistics Group's Operating Margin % has ranged from 0.58 to 6.60. According to the industry distribution chart, Covenant Logistics Group ranks #799 out of 1007 companies in the Transportation industry, placing it in the top 79.3%.
Is Covenant Logistics Group's Operating Margin % too high?
Covenant Logistics Group's current Operating Margin % of 2.16% is 48% below median its 10-year median of 4.15. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 6.60. The Transportation industry median Operating Margin % is 7.37. Covenant Logistics Group's value of 2.16% is 70.7% below this industry median. Based on the distribution chart, Covenant Logistics Group ranks #799 out of 1007 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 Operating Margin % compare to HTLD and MRTN?
According to the Transportation industry distribution chart, Covenant Logistics Group ranks #799 out of 1007 companies for Operating Margin %. This places Covenant Logistics Group in the lower half of its industry. The industry median Operating Margin % is 7.37. Covenant Logistics Group's value of 2.16% is 70.7% below this benchmark. Historically, Covenant Logistics Group's own Operating Margin % has ranged from 0.58 to 6.60 over the past decade. While the company's 10-year median is 4.15 vs. the industry median of 7.37, 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 Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covenant Logistics Group's current Operating Margin % of 2.16% is 70.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Covenant Logistics Group and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covenant Logistics Group's current Operating Margin % is 2.16%, which is 48% below median its own 10-year median of 4.15. 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 Operating Margin % of 2.16%. The stock's GF Value™ is €23.50, compared to a current price of €37.80 — trading 60.9% above its estimated fair value. The current Operating Margin % is 2.16%, which is 48% below median its 10-year median of 4.15 and 70.7% below the Transportation industry median of 7.37. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Covenant Logistics Group (FRA:CV5), the current Operating Margin % is 2.16% 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 €37.80 is trading 60.9% above its estimated GF Value™ of €23.50.
Key valuation signals for FRA:CV5:
Operating Margin %: 2.16% (48% below median its 10-year median of 4.15)
GF Value™: €23.50 vs. price of €37.80 (60.9% above fair value)
Industry Position: 70.7% below the Transportation median (#799 of 1007)
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
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:CV5 has been successfully added to your 
