Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Covenant Logistics Group's annualized net income for the quarter that ended in Mar. 2026 was €15 Mil. Covenant Logistics Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €190 Mil. Therefore, Covenant Logistics Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.04%.
The historical rank and industry rank for Covenant Logistics Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:CV5'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -17.03 Med: 14.76 Max: 38.99
Current: 2.12
During the past 13 years, Covenant Logistics Group's highest Return-on-Tangible-Equity was 38.99%. The lowest was -17.03%. And the median was 14.76%.
FRA:CV5's Return-on-Tangible-Equity is ranked worse than 77.48% of 977
companies
in the Transportation industry
Industry Median: 9.02
vs FRA:CV5: 2.12
Covenant Logistics Group (FRA:CV5) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Covenant Logistics Group Return-on-Tangible-Equity Related Terms
Covenant Logistics Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Covenant Logistics Group's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
FRA:CV5 vs HTLD, MRTN, ULH: Return-on-Tangible-Equity Comparison
For the Trucking subindustry, Covenant Logistics Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Covenant Logistics Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Covenant Logistics Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.04% mean?
Covenant Logistics Group (FRA:CV5) has a Return-on-Tangible-Equity of 8.04% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Covenant Logistics Group and its competitors. This is 46% below median its historical median of 14.76. According to the industry distribution chart, Covenant Logistics Group ranks #757 out of 977 companies in the Transportation industry, placing it in the top 77.5%.
Is Covenant Logistics Group's Return-on-Tangible-Equity too high?
Covenant Logistics Group's current Return-on-Tangible-Equity of 8.04% is 46% below median its 10-year median of 14.76. The Transportation industry median Return-on-Tangible-Equity is 9.02. Covenant Logistics Group's value of 8.04% is 10.9% below this industry median. Based on the distribution chart, Covenant Logistics Group ranks #757 out of 977 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 Return-on-Tangible-Equity compare to HTLD and MRTN?
According to the Transportation industry distribution chart, Covenant Logistics Group ranks #757 out of 977 companies for Return-on-Tangible-Equity. This places Covenant Logistics Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.02. Covenant Logistics Group's value of 8.04% is 10.9% below this benchmark. While the company's 10-year median is 14.76 vs. the industry median of 9.02, 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 Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.02, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covenant Logistics Group's current Return-on-Tangible-Equity of 8.04% is 10.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Covenant Logistics Group and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covenant Logistics Group's current Return-on-Tangible-Equity is 8.04%, which is 46% below median its own 10-year median of 14.76. 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 Return-on-Tangible-Equity of 8.04%. The stock's GF Value™ is €23.26, compared to a current price of €37.80 — trading 62.5% above its estimated fair value. The current Return-on-Tangible-Equity is 8.04%, which is 46% below median its 10-year median of 14.76 and 10.9% below the Transportation industry median of 9.02. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Covenant Logistics Group (FRA:CV5), the current Return-on-Tangible-Equity is 8.04% 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 62.5% above its estimated GF Value™ of €23.26.
Key valuation signals for FRA:CV5:
Return-on-Tangible-Equity: 8.04% (46% below median its 10-year median of 14.76)
GF Value™: €23.26 vs. price of €37.80 (62.5% above fair value)
Industry Position: 10.9% below the Transportation median (#757 of 977)
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
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