Is COVENANT LOGISTICS GROUP, INC. (CVLG) Halal?

NYSE Industrials United States $667M
✗ NOT HALAL
Confidence: 90/100
COVENANT LOGISTICS GROUP, INC. (CVLG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 45.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. COVENANT LOGISTICS GROUP, INC. operates in the Industrials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 45.1%
/ 30%
5.4%
/ 30%
23.1%
/ 30%
1.16%
/ 5%
✗ NOT HALAL
DJIM 45.1%
/ 33%
5.4%
/ 33%
23.1%
/ 33%
1.16%
/ 5%
✗ NOT HALAL
MSCI 29.8%
/ 33%
3.6%
/ 33%
15.3%
/ 33%
1.16%
/ 5%
✓ HALAL
S&P 45.1%
/ 33%
5.4%
/ 33%
23.1%
/ 33%
1.16%
/ 5%
✗ NOT HALAL
FTSE 29.8%
/ 33%
3.6%
/ 33%
15.3%
/ 50%
1.16%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
166.1
Forward: 10.8
EPS
$0.16
Dividend Yield
105.0%
Payout: 175.0%
P/B Ratio
1.6
EV/EBITDA
8.6
EV: $1.0B
Revenue
$1.2B
Growth: 6.5%
Beta
1.1
Average volatility
Current Ratio
1.1

Profitability

Gross Margin 22.0%
Operating Margin -2.1%
Net Margin 0.6%
Return on Equity (ROE) 1.0%
Return on Assets (ROA) 1.4%

Cash Flow & Balance Sheet

Operating Cash Flow$114M
Free Cash Flow-$34M
Total Debt$339M
Debt-to-Equity83.8
Current Ratio1.1
Total Assets$1.0B

Price & Trading

Last Close$27.12
50-Day MA$27.28
200-Day MA$23.80
Avg Volume161K
Beta1.1
52-Week Range
$17.46
$30.43

About COVENANT LOGISTICS GROUP, INC. (CVLG)

CEO
Mr. David Ray Parker
Employees
2,900
Sector
Industrials
Industry
Trucking
Country
United States
Exchange
NYSE
Market Cap
$667M
Currency
USD

Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. The Dedicated segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. The Warehousing segment provides day-to-day warehouse management services to customers, as well as shuttle and switching services related to shuttling containers and trailers. The company also engages in used equipment sales and leasing business. It serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in May 2007. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.

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Frequently Asked Questions

Is COVENANT LOGISTICS GROUP, INC. (CVLG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), COVENANT LOGISTICS GROUP, INC. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is COVENANT LOGISTICS GROUP, INC.'s debt ratio?

COVENANT LOGISTICS GROUP, INC.'s debt ratio is 45.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 29.8%.

What are COVENANT LOGISTICS GROUP, INC.'s key financial metrics?

COVENANT LOGISTICS GROUP, INC. has a market capitalization of $667M, trailing P/E ratio of 166.1, and revenue of $1.2B. The company maintains a gross margin of 22.0% and a net margin of 0.6%. Return on equity stands at 1.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.