One-glance verdict
Undervalued
$13.07 our estimate vs market $3.04
Wall Street consensus: $7.50 (-42.6% lower than our fair-value estimate)
77% below our estimate, below the bear case
Fundamentals snapshot
Commercial Vehicle Group, Inc.
CVGI · NMS · Consumer Cyclical · Auto Parts
Current price
$3.04
52-week range
$1.29 - $5.88
Market cap
$123.73M
Balance sheet
Distressed
-0.05x Concerning
Net debt $110.57M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 3.8% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -15.1% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 3.2% to 1.2% over 3 years.
What this company does
Commercial Vehicle Group, Inc.
Commercial Vehicle Group makes and sells key parts for large vehicles like semi-trucks, construction equipment, and delivery vans, including seats, electrical wiring, and interior cabin components. The company earns its revenue by being a key part of the vehicle supply chain (the network of businesses that bring a product from raw material to the final customer), selling these components directly to large vehicle manufacturers. This means its financial health is closely tied to the demand for new trucks and industrial machines, including the growing market for electric vehicles.
How the company got here
Commercial Vehicle Group (CVG) was formed in 2000 through the combination of several companies that supplied parts to the heavy truck industry. It was initially a private company, created through acquisitions funded by investment firms. In 2004, the company went public on the NASDAQ stock exchange, allowing the general public to buy shares. Over the years, CVG has grown by acquiring other companies that make related products, expanding its offerings for commercial and specialty vehicles.
What it actually does
CVG makes a wide range of parts that go into creating the complete cab, or driver's compartment, for commercial vehicles. Think of everything a truck driver sees and touches inside their truck: the seat they sit on, the dashboard, interior trim, and even the electrical wiring that makes everything work. The company sells these parts to large vehicle manufacturers like truck, bus, and construction equipment makers, as well as to the aftermarket (the market for replacement parts and accessories). They also serve a growing number of electric vehicle makers.
Global Seating
This part of the business designs and manufactures the seats that drivers and passengers sit on in various vehicles. This includes seats for heavy-duty trucks, construction equipment, and last-mile delivery vans. They sell these seats directly to the vehicle manufacturers who are building new vehicles. This segment is a core part of CVG's identity and history.
Global Electrical Systems
This segment produces the complex web of wires and electrical components that power a modern vehicle. They make everything from simple wire harnesses (organized sets of wires) to complete dashboard assemblies and control boxes for both high and low voltage systems. This is a crucial business as vehicles, especially electric ones, become more technologically advanced and require more sophisticated electrical systems. Customers include truck, construction, and military vehicle manufacturers.
Trim Systems and Components
This division focuses on the interior and exterior non-electrical parts of a vehicle cab. This includes plastic dashboards, door panels, and other interior trim pieces that give the cab a finished look. It also manufactures vehicle accessories like windshield wipers and mirrors. This segment provides the finishing touches that are essential for the driver's comfort and the vehicle's functionality.
What management is betting on now
The company's leadership is focused on making the business more efficient and closely aligned with its customers' needs. A key priority is growing with the electric vehicle market by supplying the specialized electrical systems these vehicles require. They are also concentrating on expanding their market share (the percentage of total sales in an industry generated by a particular company) and improving profitability. This involves a new organizational structure to make the company more agile and customer-focused.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-20.35M
FY2024 Q4
$-30.59M
FY2025 Q1
$11.37M
FY2025 Q2
$17.40M
FY2025 Q3
$-3.50M
FY2025 Q4
$8.73M
FY2026 Q1
$-4.21M
FY2026 Q2
$-1.40M
Revenue
$195.24M
Net income
$-10.24M
Diluted EPS
—
Operating cash flow
$1.68M
Free cash flow
$-1.40M
Fetching…
Sources
Revenue
$171.50M
Net income
$902.00K
Diluted EPS
—
Operating cash flow
$-1.56M
Free cash flow
$-4.21M
Fetching…
Sources
Revenue
$154.76M
Net income
$-6.63M
Diluted EPS
—
Operating cash flow
$12.29M
Free cash flow
$8.73M
Fetching…
Sources
Revenue
$152.49M
Net income
$-7.08M
Diluted EPS
—
Operating cash flow
$-1.69M
Free cash flow
$-3.50M
Fetching…
Sources
Revenue
$171.96M
Net income
$-4.76M
Diluted EPS
—
Operating cash flow
$18.87M
Free cash flow
$17.40M
Fetching…
Sources
Revenue
$169.79M
Net income
$-4.31M
Diluted EPS
—
Operating cash flow
$15.17M
Free cash flow
$11.37M
Fetching…
Sources
Revenue
$89.61M
Net income
$-38.72M
Diluted EPS
—
Operating cash flow
$-26.62M
Free cash flow
$-30.59M
Fetching…
Sources
Revenue
$171.77M
Net income
$9.51M
Diluted EPS
—
Operating cash flow
$-17.07M
Free cash flow
$-20.35M
Fetching…
Sources
Is it cheap or expensive?
Fair value $13.07 vs current price $3.04
Wall Street consensus is the average analyst price target: $7.50 (-42.6% lower than our fair-value estimate).
Our most-likely fair value is $13.07 a share — about 329.2% above today's price of $3.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $110.6M. Interest coverage -0.1x.
Net debt
$110.57M
Interest coverage
-0.05x
Commercial Vehicle Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CVGI
BASELINE
Commercial Vehicle Group, Inc.
Total debt $146.52M Interest coverage -0.05x This is the baseline the peer rows are being compared against.
Total debt $156.86M Interest coverage -1.25x Neither company has much profit cushion over interest right now.
Total debt $2.65B Interest coverage 2.18x This peer still has a real interest-payment cushion, while CVGI does not.
Total debt $3.52B Interest coverage 7.71x This peer still has a real interest-payment cushion, while CVGI does not.
Total debt $1.50B Interest coverage 1.18x This peer still has a real interest-payment cushion, while CVGI does not.
Total debt $325.08M Interest coverage 7.05x This peer still has a real interest-payment cushion, while CVGI does not.
What you should know
The case for and against CVGI
2 Rewards
2 Risks
Rewards
-
Revenue grew 3.8% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -15.1% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 3.2% to 1.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
19.86x
P/B
0.78x
P/S
0.18x
EV/EBITDA
11.93x
PEG ratio
1.26x
Profitability
How much profit each dollar creates
Gross margin
12.0%
Operating margin
1.2%
Net margin
-3.4%
ROE
-15.1%
ROA
0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
1.98x
Quick ratio
0.95x
Total debt
$146.52M
Total cash
$35.95M
Growth
How the business has been compounding
Revenue TTM
$673.98M
Revenue 5Y CAGR
-9.6%
EPS TTM
-0.63
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$10.72M
Free CF TTM
$33.99M
FCF margin
5.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—