Commercial Vehicle Group (CVGI) AI Stock Analysis

• Market Cap: $34.99M
• Dividend Yield: N/A
• Average Volume (3M): 400.69K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.73
• Revenue Growth: -19.87%
• EPS Growth: -155.63%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Auto - Parts
• EPS (TTM): -0.83
• Shares Outstanding: 34,640,434
• 10 Day Avg. Volume: 437,975
• 30 Day Avg. Volume: 400,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.07
• Price to Cash Flow (P/CF): -0.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 443.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Commercial Vehicle Group's stock is facing significant challenges, as reflected by its low overall score. Declining revenues, negative profitability, and high leverage are major concerns. The technical analysis indicates a bearish trend, and the valuation is unattractive given the negative P/E ratio and lack of dividends. The earnings call provides some hope for recovery through strategic restructuring and efficiency improvements, but immediate financial metrics remain weak.

Positive Factors

Business Expansion

New business wins in excess of $97 million when fully ramped are concentrated in the Electrical Systems segment predominantly outside of construction and agriculture end markets.

Earnings

Q4/24 results were better than analyst as well as consensus expectations, indicating strong performance.

Negative Factors

EBITDA Decline

Adjusted EBITDA declined 64.8% to $4.3 million due to lower sales volumes and operational inefficiencies.

Operational Challenges

Adjusted operating loss totaled $4.3 million driven primarily by lower sales volumes and operational inefficiencies.

Revenue Decline

Revenue for Q4/24 declined 15.7% due primarily to a global softening in construction and agriculture markets and a decrease in Class 8 heavy truck builds.

Commercial Vehicle Group Business Overview & Revenue Model

Company Description

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, produces, and sells components and assemblies in North America, Europe, and the Asia-Pacific regions. It operates in four segments: Vehicle Solutions, Warehouse Automation, Electrical Systems, and Aftermarket & Accessories. The company offers electrical wire harness assemblies that function as current carrying devices in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. It also offers electro-mechanical assemblies, such as box builds, complex automated and robotic assemblies, and large multi-cabinet control cabinets with power distribution and cabling; vinyl or cloth-covered appliqués, armrests, map pocket compartments, and sound-reducing insulations; instrument panels; and plastics decorating and finishing products. In addition, it provides cab structures; design products, including armrests, grab handles, storage systems, floor coverings, floor mats, sleeper bunks, headliners, wall panels, and privacy curtains; and mirrors, wipers, and controls used in commercial, military and specialty recreational vehicles. Further, it offers seats and seating systems, such as mechanical and air suspension, static and military seats, and bus, as well as seats for medium-and heavy-duty trucks (MD/HD trucks); office seating products; and seats, parts, and components for the aftermarket. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; and MD/HD truck, bus, construction, mining, agricultural, military, industrial, municipal, off-road recreational, and specialty vehicle markets. Commercial Vehicle Group, Inc. was incorporated in 2000 and is headquartered in New Albany, Ohio.

How the Company Makes Money

Commercial Vehicle Group generates revenue primarily through the manufacture and sale of its diverse range of products. The company's key revenue streams are driven by its core product lines, which include seating systems, electrical wire harnesses, and interior trim systems. These products are sold directly to original equipment manufacturers (OEMs) in the commercial vehicle industry. Additionally, CVGI engages in strategic partnerships and collaborations with major industry players to enhance its market reach and product offerings. The company benefits from long-term supply agreements with its clients, providing a stable and recurring revenue base. Furthermore, CVGI continually invests in research and development to innovate and expand its product lines, creating additional revenue opportunities.

Commercial Vehicle Group Financial Statement Overview

Summary

The company is experiencing financial challenges with declining revenues, negative profitability, and weakened cash flows. The balance sheet shows high leverage and low equity, raising financial stability concerns.

Income Statement

The income statement reveals a concerning trend with declining revenues and profitability. Revenue has decreased significantly from 2023 to 2024, with a negative net profit margin in 2024 indicating losses. The gross profit margin also declined, reflecting increased cost pressures. The EBIT and EBITDA margins turned negative, further highlighting operational challenges.

Balance Sheet

The balance sheet indicates moderate financial stability with some concerns. The debt-to-equity ratio has improved slightly, showing some decrease in leverage, but remains relatively high. The equity ratio suggests low equity financing, which could pose risks. Return on Equity turned negative in 2024, influenced by net losses, indicating a decline in shareholder returns.

Cash Flow

Cash flow analysis shows weakening cash generation capabilities. Operating cash flow turned negative in 2024, while free cash flow also deteriorated, indicating strained cash resources. The free cash flow to net income ratio is concerning due to negative values, reflecting cash-flow issues, despite previous periods of positive cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
723.36M	994.68M	981.55M	971.58M	717.70M
	Gross Profit
73.12M	135.02M	86.50M	118.99M	74.08M
	EBIT
-758.00K	48.06M	-8.50M	31.96M	5.12M
	EBITDA
18.32M	64.50M	33.79M	68.53M	-6.43M
	Net Income Common Stockholders
-27.87M	49.41M	-21.97M	23.73M	-37.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.63M	37.85M	31.82M	34.96M	50.50M
	Total Assets
424.57M	483.21M	470.27M	507.69M	454.37M
	Total Debt
166.33M	173.65M	179.28M	222.52M	179.74M
	Net Debt
139.70M	135.80M	147.46M	187.56M	129.24M
	Total Liabilities
288.98M	310.28M	350.23M	381.04M	359.00M
	Stockholders Equity
135.59M	172.93M	120.04M	126.65M	95.37M
Cash Flow		Free Cash Flow
-51.97M	18.58M	49.24M	-47.48M	27.23M
	Operating Cash Flow
-33.45M	38.28M	68.95M	-29.83M	34.37M
	Investing Cash Flow
30.90M	-19.70M	-19.71M	-17.57M	-6.42M
	Financing Cash Flow
-7.12M	-12.73M	-50.09M	31.01M	-19.26M

Commercial Vehicle Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGI, the sentiment is Negative. The current price of 0.92 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.70, and below the 200-day MA of 2.88, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 21.77 is Positive, neither overbought nor oversold. The STOCH value of 6.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVGI.

Commercial Vehicle Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMI	73 Outperform	$40.85B	10.45	41.27%	2.41%	0.14%	444.36%
PCAR	70 Outperform	$49.31B	11.88	24.93%	1.42%	-4.29%	-9.76%
OSK	68 Neutral	$5.76B	8.60	17.34%	2.12%	11.36%	13.78%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
DAN	57 Neutral	$1.74B	―	-3.92%	3.34%	-2.57%	-248.28%
WNC	51 Neutral	$444.86M	―	-76.95%	3.38%	-23.25%	-232.48%
CVGI	44 Neutral	$34.99M	1.82	-22.39%	―	-19.87%	-155.63%

Commercial Vehicle Group Corporate Events

Commercial Vehicle Group Announces Executive Retention Agreements

Commercial Vehicle Group, Inc. announced retention agreements for key executives, effective April 1, 2025, to ensure leadership continuity. The agreements include retention bonuses for Andy Cheung, Aneezal Mohamed, and Kristin Mathers, payable by March 31, 2027, contingent on continued employment. Additionally, Robert C. Griffin, Chairman of the Board since 2005, will retire on May 15, 2025, with William C. Johnson expected to succeed him as Chairman.

Spark’s Take on CVGI Stock

According to Spark, TipRanks’ AI Analyst, CVGI is a Neutral.

CVGI faces significant financial and operational challenges, with declining revenues and profitability. The bearish technical indicators reflect current market pessimism. The earnings call provided some hope for future improvements through strategic restructuring and new business wins, but immediate financial concerns weigh heavily on the stock.

To see Spark’s full report on CVGI stock, click here.

Commercial Vehicle Group Reports 2024 Financial Results

CVG reported its financial results for the fourth quarter and full year 2024, highlighting a strategic shift in its operations by divesting non-core segments like Industrial Automation. The company faced a decline in revenue and profitability due to global demand softening and operational inefficiencies, but it anticipates future growth from new business wins and operational improvements.

Commercial Vehicle Group Appoints New Chief Operating Officer

Commercial Vehicle Group announced the appointment of Scott Reed as Chief Operating Officer effective February 13, 2025. Reed, with over 30 years of experience in industrial and manufacturing organizations, will oversee global manufacturing and supply chain operations to enhance operational excellence. This leadership change is part of CVG’s strategy to optimize business operations and strengthen market position. The company also announced the departure of Don Fishel, President of Trim Systems and Components, after 14 years, with Andy Cheung temporarily overseeing this division while a new leader is sought.