KIGRY - Commercial Vehicle Group Inc. Executing Well On Its Transformation Plan
- CVG has continued to beat sell-side revenue and EBITDA expectations, as the company benefits from strong commercial vehicle production volumes (trucks and off-road) and strong warehouse automation demand.
- Management warned of some near-term slowdowns in the warehouse business, and the commercial vehicle business is still a highly cyclical business likely heading toward a 2022 peak.
- Automation and commercial EVs create significant long-term revenue and margin opportunities, but timing, competition, and margins are all still relevant risk factors.
- Long-term revenue growth of around 6% and mid-single-digit FCF margins can support a near-term share price of $15, and there's room for management to exceed those targets (and disappoint as well).
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Commercial Vehicle Group, Inc. Executing Well On Its Transformation Plan