The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.75 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Covenant Logistics Group has a Altman Z-Score of 2.76, indicating it is in Grey Zones. This implies that Covenant Logistics Group is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Covenant Logistics Group's Altman Z-Score or its related term are showing as below:
FRA:CV5'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.61 Med: 2.42 Max: 3.6
Current: 2.75
During the past 13 years, Covenant Logistics Group's highest Altman Z-Score was 3.60. The lowest was 1.61. And the median was 2.42.
Covenant Logistics Group (FRA:CV5) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Trucking subindustry, Covenant Logistics Group's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Transportation Industry
For the Transportation industry and Industrials sector, Covenant Logistics Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Covenant Logistics Group's Altman Z-Score falls into.
Covenant Logistics Group Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Covenant Logistics Group (FRA:CV5) has a Altman Z-Score of 2.76 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Covenant Logistics Group and its competitors. This is 14% above median its historical median of 2.42. Over the past decade, Covenant Logistics Group's Altman Z-Score has ranged from 1.61 to 3.60. According to the industry distribution chart, Covenant Logistics Group ranks #389 out of 992 companies in the Transportation industry, placing it in the top 39.2%.
Is Covenant Logistics Group's Altman Z-Score too high?
Covenant Logistics Group's current Altman Z-Score of 2.76 is 14% above median its 10-year median of 2.42. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 3.60. The Transportation industry median Altman Z-Score is 2.27. Covenant Logistics Group's value of 2.76 is 21.6% above this industry median. Based on the distribution chart, Covenant Logistics Group ranks #389 out of 992 companies in the Transportation industry, which is above the industry midpoint. 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 Altman Z-Score compare to HTLD and MRTN?
According to the Transportation industry distribution chart, Covenant Logistics Group ranks #389 out of 992 companies for Altman Z-Score. This puts Covenant Logistics Group in the upper half of its industry. The industry median Altman Z-Score is 2.27. Covenant Logistics Group's value of 2.76 is 21.6% above this benchmark. Historically, Covenant Logistics Group's own Altman Z-Score has ranged from 1.61 to 3.60 over the past decade. While the company's 10-year median is 2.42 vs. the industry median of 2.27, Covenant Logistics Group has consistently been above 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 Altman Z-Score for a Transportation company?
The median Altman Z-Score among Transportation companies is 2.27, based on 992 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covenant Logistics Group's current Altman Z-Score of 2.76 is 21.6% above 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Covenant Logistics Group and its competitors. For the Transportation industry, the median Altman Z-Score is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covenant Logistics Group's current Altman Z-Score is 2.76, which is 14% above median its own 10-year median of 2.42. 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 Altman Z-Score of 2.76. 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 Altman Z-Score is 2.76, which is 14% above median its 10-year median of 2.42 and 21.6% above the Transportation industry median of 2.27. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Covenant Logistics Group (FRA:CV5), the current Altman Z-Score is 2.76 as of Jun. 29, 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:
Altman Z-Score: 2.76 (14% above median its 10-year median of 2.42)
GF Value™: €22.87 vs. price of €38.00 (66.2% above fair value)
Industry Position: 21.6% above the Transportation median (#389 of 992)
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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