Commercial Vehicle Group, Inc. (CVGI) Bundle
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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