Commercial Vehicle Group, Inc. (CVGI - Get Rating) exceeded analysts’ estimates in terms of both revenue and EPS in the last reported quarter. The increase was attributed to improved demand, price realization, and new business win revenue. Moreover, the company has delivered significant margin expansion and is on course to meet its goal of $1.5 billion in revenue and an EBITDA margin of 9% by 2027.

The stock has gained more than 45% year-to-date and is trading above its 50-day and 200-day moving averages, indicating an uptrend. So, it will be wise to monitor the trends of some of its key financial metrics.

Tracking CVGI’s Revenue and Gross Margin Trends

CVGI’s revenue has shown an overall growth trend since June 2020, increasing from $72.89 million to $99.99 million in March 2023. This was at a growth rate of 35%. The revenue saw fluctuations over this period, such as in September 2020 and September 2021, when it dipped by 6% and 4%, respectively. However, the last value in the series shows the revenue even higher than in March 2021, with a 5% increase.

CVGI’s gross margin has generally been trending upward, starting at 8.7% in June 2020 and reaching a peak of 12.4% in June 2021. However, there have been fluctuations along the way, with the most recent value being 9.6% in March 2023. Overall, the gross margin grew by 10.3% over the 3-year period.

Remarkable Rise in CVGI Share Price Since November 2022

CVGI’s share price has steadily increased since November 2022, with a notable jump between March and April 2023. The growth rate since then has been accelerating, as the share price rose from $6.62 on November 11, 2022, to a peak of $10.03 on May 9, 2023. Here is a chart of CVGI’s price over the past 180 days.

CVGI’s POWR Ratings Indicate Steady Growth and Value

CVGI has an overall A rating, translating to a Strong Buy in our POWR Ratings system. It is currently ranked #6 out of 60 stocks in the Auto Parts category.

The POWR Ratings of CVGI reveal that Growth, Value, and Quality have the highest ratings. Growth had consistently high ratings ranging from 95 to 96 from November 2022 to May 2023. Meanwhile, Value remained comparatively stable with a rating between 94 and 96 over the same period. Lastly, Quality exhibited fluctuating ratings between 67 and 70 through May 2023. In general, these ratings indicate a positive outlook for CVGI.

How does Commercial Vehicle Group Inc. (CVGI) Stack Up Against its Peers?

Other stocks in the Auto Parts sector worth considering are JTEKT Corporation (JTEKY - Get Rating), Garrett Motion Inc. (GTX - Get Rating), and Valeo (VLEEY - Get Rating). These stocks are also rated A.

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CVGI shares were trading at $9.09 per share on Tuesday afternoon, down $0.92 (-9.19%). Year-to-date, CVGI has gained 33.48%, versus a 8.00% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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