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Covenant Logistics GroupCVLG -11.20%68 Pretax Margin % is 1.98% as of Mar. 2026, which is 51% below its 10-year median of 4.06. GuruFocus rates CVLG with a GF Score™ of 68/100 and a GF Value™ of $27.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,001 Transportation companies, Covenant Logistics Group ranks worse than 80.62% on this metric.
The historical rank and industry rank for Covenant Logistics Group's Pretax Margin % or its related term are showing as below:
CVLG'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.02 Med: 4.06 Max: 11.73
Current: 0.26
CVLG's Pretax Margin % is ranked worse than 80.62% of 1001
companies
in the Transportation industry
Industry Median: 6.64
vs CVLG: 0.26
Covenant Logistics Group (NYSE:CVLG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Covenant Logistics Group Pretax Margin % Related Terms
Covenant Logistics Group Pretax 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.
CVLG vs HTLD, MRTN, ULH: Pretax Margin % Comparison
For the Trucking subindustry, Covenant Logistics Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Covenant Logistics Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Covenant Logistics Group's Pretax Margin % falls into.
* 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 (CVLG) has a Pretax Margin % of 1.98% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Covenant Logistics Group and its competitors. This is 51% below median its historical median of 4.06. According to the industry distribution chart, Covenant Logistics Group ranks #807 out of 1001 companies in the Transportation industry, placing it in the top 80.6%.
Is Covenant Logistics Group's Pretax Margin % too high?
Covenant Logistics Group's current Pretax Margin % of 1.98% is 51% below median its 10-year median of 4.06. The Transportation industry median Pretax Margin % is 6.64. Covenant Logistics Group's value of 1.98% is 70.2% below this industry median. Based on the distribution chart, Covenant Logistics Group ranks #807 out of 1001 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 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Covenant Logistics Group's Pretax Margin % compare to HTLD and MRTN?
According to the Transportation industry distribution chart, Covenant Logistics Group ranks #807 out of 1001 companies for Pretax Margin %. This places Covenant Logistics Group in the lower half of its industry. The industry median Pretax Margin % is 6.64. Covenant Logistics Group's value of 1.98% is 70.2% below this benchmark. While the company's 10-year median is 4.06 vs. the industry median of 6.64, 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 Pretax Margin % for a Transportation company?
The median Pretax Margin % among Transportation companies is 6.64, based on 1,001 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covenant Logistics Group's current Pretax Margin % of 1.98% is 70.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Covenant Logistics Group and its competitors. For the Transportation industry, the median Pretax Margin % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covenant Logistics Group's current Pretax Margin % is 1.98%, which is 51% below median its own 10-year median of 4.06. 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?
Based on GuruFocus' analysis, Covenant Logistics Group (CVLG) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.32, compared to a current price of $36.85 — trading 34.9% above its estimated fair value. The current Pretax Margin % is 1.98%, which is 51% below median its 10-year median of 4.06 and 70.2% below the Transportation industry median of 6.64. Covenant Logistics Group's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Covenant Logistics Group (CVLG), the current Pretax Margin % is 1.98% 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 (CVLG) Overvalued in 2026?
Based on GuruFocus' analysis, Covenant Logistics Group stock appears to be overvalued.
The current stock price of $36.85 is trading 34.9% above its estimated GF Value™ of $27.32.
GuruFocus considers Covenant Logistics Group to be Significantly Overvalued.
Key valuation signals for CVLG:
Pretax Margin %: 1.98% (51% below median its 10-year median of 4.06)
GF Value™: $27.32 vs. price of $36.85 (34.9% above fair value)
Industry Position: 70.2% below the Transportation median (#807 of 1001)
No single metric tells the full story. See the CVLG 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
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