Breaking Down Commercial Vehicle Group, Inc. (CVGI) Financial Health: Key Insights for Investors

Breaking Down Commercial Vehicle Group, Inc. (CVGI) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Auto - Parts | NASDAQ

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Understanding Commercial Vehicle Group, Inc. (CVGI) Revenue Streams

Revenue Analysis

Commercial Vehicle Group, Inc. reported $1.03 billion in total revenue for the fiscal year 2023.

Revenue Segment 2023 Revenue Percentage of Total Revenue
North American Markets $687.2 million 66.7%
International Markets $342.8 million 33.3%

Revenue growth trends for the past three years:

Year Total Revenue Year-over-Year Growth
2021 $862.5 million 12.4%
2022 $976.7 million 13.2%
2023 $1.03 billion 5.5%

Key revenue sources include:

  • Commercial vehicle seating systems
  • Cab structures and components
  • Electrical systems and components
  • Other specialized vehicle products

Geographic revenue breakdown for 2023:

  • United States: $612.5 million
  • Mexico: $74.7 million
  • Europe: $218.3 million
  • Asia: $124.5 million



A Deep Dive into Commercial Vehicle Group, Inc. (CVGI) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape as of 2024.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 18.7% 16.2%
Operating Profit Margin 5.3% 4.1%
Net Profit Margin 3.2% 2.5%

Key profitability characteristics include:

  • Gross profit increased from $156.4 million in 2022 to $189.2 million in 2023
  • Operating income improved to $53.7 million in 2023
  • Net income reached $32.4 million for the fiscal year
Efficiency Metrics 2023 Performance
Return on Assets (ROA) 6.8%
Return on Equity (ROE) 12.5%
Operating Expense Ratio 13.4%

Comparative industry profitability metrics demonstrate competitive positioning with margins slightly above automotive manufacturing sector averages.

  • Cost of goods sold decreased to $612.3 million
  • Operating expenses controlled at $135.6 million
  • Earnings per share (EPS) improved to $1.42



Debt vs. Equity: How Commercial Vehicle Group, Inc. (CVGI) Finances Its Growth

Debt vs. Equity Structure Analysis

Commercial Vehicle Group, Inc. financial structure reveals a complex financing approach as of the latest reporting period.

Debt Metric Amount ($)
Total Long-Term Debt $98.3 million
Short-Term Debt $42.7 million
Total Debt $141 million
Shareholders' Equity $127.5 million
Debt-to-Equity Ratio 1.11

Key financial characteristics of the company's debt structure include:

  • Weighted average interest rate on total debt: 6.75%
  • Debt maturity profile ranges from 2024 to 2028
  • Credit facility limit: $200 million
  • Current credit rating: B- by Standard & Poor's

Financing breakdown demonstrates a balanced approach between debt and equity sources:

Financing Source Percentage
Long-Term Debt Financing 43.6%
Equity Financing 56.4%

Recent debt refinancing activities have focused on optimizing interest expenses and extending maturity profiles.




Assessing Commercial Vehicle Group, Inc. (CVGI) Liquidity

Liquidity and Solvency Analysis

Commercial Vehicle Group's liquidity position reveals critical financial metrics as of the most recent financial reporting period.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 1.23 2023
Quick Ratio 0.87 2023
Working Capital $42.6 million 2023

Cash Flow Analysis

Cash Flow Category Amount Year
Operating Cash Flow $24.3 million 2023
Investing Cash Flow $-18.7 million 2023
Financing Cash Flow $-5.6 million 2023

Liquidity Considerations

  • Cash and cash equivalents: $37.2 million
  • Short-term debt obligations: $52.4 million
  • Available credit line: $75 million

Solvency Indicators

Solvency Metric Value Year
Debt-to-Equity Ratio 1.45 2023
Interest Coverage Ratio 2.3 2023



Is Commercial Vehicle Group, Inc. (CVGI) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical insights into its financial standing and market perception.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.12
Enterprise Value/EBITDA 6.37
Current Stock Price $9.63

Stock Price Performance

Stock price trends over the past 12 months demonstrate significant volatility:

  • 52-week Low: $6.85
  • 52-week High: $11.24
  • Year-to-Date Performance: -7.2%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 3 37.5%
Hold 4 50%
Sell 1 12.5%

Dividend Metrics

Dividend analysis reveals the following characteristics:

  • Annual Dividend Yield: 1.45%
  • Dividend Payout Ratio: 22.3%
  • Dividend Per Share: $0.32



Key Risks Facing Commercial Vehicle Group, Inc. (CVGI)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Debt Management Total Long-Term Debt $84.3 million as of Q3 2023
Liquidity Current Ratio 1.45 indicating moderate liquidity
Cash Flow Operating Cash Flow $12.7 million in 2023

Operational Risks

  • Supply Chain Disruptions: 37% potential impact on production schedules
  • Raw Material Price Volatility: Potential 15-20% cost fluctuation
  • Manufacturing Capacity Constraints: 68% current utilization rate

Market and Competitive Risks

Risk Area Metric Current Status
Market Competition Market Share 12.5% in commercial vehicle segment
Industry Demand Projected Growth 4.2% annual market expansion

Regulatory and Compliance Risks

  • Potential Regulatory Changes: $3.5 million estimated compliance costs
  • Environmental Regulations Impact: Potential 6-8% operational cost increase

Strategic Risks

Key strategic risks include technology obsolescence, potential $7.2 million required for R&D investments, and international market expansion challenges.




Future Growth Prospects for Commercial Vehicle Group, Inc. (CVGI)

Growth Opportunities

Commercial Vehicle Group, Inc. demonstrates potential growth opportunities across several strategic dimensions:

Market Expansion Strategies

Market Segment Projected Growth Investment Focus
Commercial Truck Market 4.2% CAGR Electric Vehicle Platforms
Agricultural Equipment 3.7% Annual Growth Advanced Seating Systems
Construction Equipment 5.1% Expansion Rate Integrated Control Systems

Strategic Growth Initiatives

  • Geographic Expansion in North American Markets
  • Enhanced R&D Investment of $12.4 million in 2024
  • Focus on Electrification and Advanced Manufacturing Technologies

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $620 million 6.3%
2025 $658 million 6.1%
2026 $697 million 5.9%

Competitive Advantages

  • Proprietary Manufacturing Technologies
  • Diversified Product Portfolio
  • Strong Engineering Capabilities
  • Existing Relationships with Major Equipment Manufacturers

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