Commercial Vehicle Group (CVGI): Buy, Sell, or Hold Post Q4 Earnings?
What a brutal six months it's been for Commercial Vehicle Group. The stock has dropped 68.8% and now trades at $0.95, rattling many shareholders. This might have investors contemplating their next move.
Is there a buying opportunity in Commercial Vehicle Group, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free.
Even though the stock has become cheaper, we're swiping left on Commercial Vehicle Group for now. Here are three reasons why you should be careful with CVGI and a stock we'd rather own.
Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.
A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Commercial Vehicle Group's demand was weak and its revenue declined by 2.4% per year. This was below our standards and is a sign of poor business quality.
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Commercial Vehicle Group's margin dropped by 9.1 percentage points over the last five years. Almost any movement in the wrong direction is undesirable because of its already low cash conversion. If the trend continues, it could signal it's becoming a more capital-intensive business. Commercial Vehicle Group's free cash flow margin for the trailing 12 months was negative 5.3%.
As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by.
Commercial Vehicle Group burned through $42.59 million of cash over the last year, and its $166.3 million of debt exceeds the $26.63 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble.
Unless the Commercial Vehicle Group's fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns.
We remain cautious of Commercial Vehicle Group until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet.
Commercial Vehicle Group falls short of our quality standards. Following the recent decline, the stock trades at 10.5× forward price-to-earnings (or $0.95 per share). This valuation multiple is fair, but we don't have much confidence in the company. There are better investments elsewhere. We'd suggest looking at one of Charlie Munger's all-time favorite businesses.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
30 minutes ago
How major US stock indexes fared Firday, 6/13/2025
Oil prices leaped, and stocks slumped on worries that escalating violence following Israel's attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy. The S&P 500 sank 1.1% Friday and wiped out what had been a modest gain for the week. The Dow Jones Industrial Average dropped 769 points, and the Nasdaq composite lost 1.3%. Crude prices jumped roughly 7% because Iran is one of the world's major producers of oil and fighting in the region could disrupt the flow. Treasury yields rose with worries about inflation. On Friday: The S&P 500 fell 68.29 points, or 1.1%, to 5,976.97. The Dow Jones Industrial Average fell 769.83 points, or 1.8%, to 42,197.79. The Nasdaq composite fell 255.66 points, or 1.3%, to 19,406.83. The Russell 2000 index of smaller companies fell 39.59 points, or 1.8%, to 2,100.51. For the week: The S&P 500 is down 23.39 points, or 0.4%. The Dow is down 565.08 points, or 1.3%. The Nasdaq is down 123.13 points, or 0.6%. The Russell 2000 is down 31.74 points, or 1.5%. For the year: The S&P 500 is up 95.34 points, or 1.6%. The Dow is down 346.43 points, or 0.8%. The Nasdaq is up 96.03 points, or 0.5%. The Russell 2000 is down 129.65 points, or 5.8%.
Associated Press
an hour ago
- Associated Press
Mogo Applies to Extend the Expiry Dates of Certain Warrants
VANCOUVER, British Columbia--(BUSINESS WIRE)--Jun 13, 2025-- Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) ('Mogo' or the 'Company'), a digital wealth and payments business, today announced that it has applied to the Toronto Stock Exchange (the 'TSX') to extend the expiry date of 1,120,371 common share purchase warrants (the 'Warrants'). The Warrants were issued pursuant to the Company's US$27.5 million Registered Direct offering in December 2021 and are currently set to expire on June 13, 2025. The Warrants consist of 101,852 warrants with an exercise price of US$16.875 per common share and 1,018,519 warrants with an exercise price of US$14.10 per common share. Each Warrant entitles the holder thereof to acquire one common share of the Company and all other terms of the Warrants will remain the same. The Company is seeking to extend the expiry date of the Warrants to June 13, 2026. No insiders of the Company hold any of the Warrants, directly or indirectly. Finalization of this extension is subject to the approval of the TSX and the warrantholders. If such approvals are obtained, this extension will be effective on the date that is ten business days from the date of this press release (the 'Effective Date'), and the Warrants cannot be exercised during the period from June 13, 2025 up to the Effective Date. About Mogo Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is a financial technology company with three distinct business lines: wealth, lending, and payments. Our mission is to provide consumers with innovative financial solutions that drive long-term financial health and success. We operate with a differentiated approach in each business, leveraging technology, behavioral science, and financial tools to create unique value propositions in our respective markets. Our wealth and lending businesses are focused on the Canadian market, where we are the only subprime consumer lender that also offers a holistic wealth and investing solution. This unique integration is designed to help consumers transition from borrowing and debt to long-term wealth building. Separately, our payments business is operated through Carta Worldwide, a wholly owned subsidiary that provides modern card issuing and processing solutions, primarily in Europe. Forward-Looking Statements This news release may contain 'forward-looking statements' within the meaning of applicable securities legislation, including statements regarding the extension of the expiry date of the Warrants, including receipt of TSX and warrantholder approval. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as 'may', 'will', 'could', 'would', 'anticipate', 'believe', 'expect', 'intend', 'potential', 'estimate', 'budget', 'scheduled', 'plans', 'planned', 'forecasts', 'goals' and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the 'Risk Factors' section of Mogo's current annual information form, which is available at and Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. View source version on CONTACT: For further information: Craig Armitage Investor Relations [email protected] US Investor Relations Contact Lytham Partners, LLC Ben Shamsian New York | Phoenix [email protected] (646) 829-9701 KEYWORD: UNITED STATES NORTH AMERICA CANADA INDUSTRY KEYWORD: DATA MANAGEMENT TECHNOLOGY PROFESSIONAL SERVICES PAYMENTS DIGITAL CASH MANAGEMENT/DIGITAL ASSETS OTHER TECHNOLOGY DATA ANALYTICS SOFTWARE OTHER PROFESSIONAL SERVICES FINTECH FINANCE SOURCE: Mogo Inc. Copyright Business Wire 2025. PUB: 06/13/2025 08:55 PM/DISC: 06/13/2025 08:53 PM
Yahoo
an hour ago
- Yahoo
GE Vernova (GEV) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, GE Vernova (GEV) closed at $478.45, marking a -1.89% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.13%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%. Prior to today's trading, shares of the the energy business spun off from General Electric had gained 14.22% outpaced the Oils-Energy sector's gain of 5.03% and the S&P 500's gain of 3.55%. The investment community will be paying close attention to the earnings performance of GE Vernova in its upcoming release. The company is slated to reveal its earnings on July 23, 2025. On that day, GE Vernova is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 129.58%. Simultaneously, our latest consensus estimate expects the revenue to be $8.76 billion, showing a 6.79% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $7.16 per share and a revenue of $37.17 billion, demonstrating changes of +28.32% and +6.39%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. Right now, GE Vernova possesses a Zacks Rank of #3 (Hold). In terms of valuation, GE Vernova is presently being traded at a Forward P/E ratio of 68.14. This signifies a premium in comparison to the average Forward P/E of 19.9 for its industry. It's also important to note that GEV currently trades at a PEG ratio of 3.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Alternative Energy - Other industry had an average PEG ratio of 2.26. The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Vernova Inc. (GEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
