Commercial Vehicle Group (CVGI)
3rd QUARTER 2021
Stock #2: CVGI: NASDAQ - Founded 2000
Commercial Vehicle Group is “a leading supplier of warehouse automation and robotic assemblies.” They are a global provider of: (a) components and assemblies for global vehicle companies, (b) aftermarket products for vehicle fleet owners, and (c) mechanical assemblies for warehouse automation. They manufacture parts for various types of vehicles, installations, warehousing, and specialize in trucks.
CVGI’s business was hit hard in the first half of 2020, and improved in the second half of 2020. Overall revenue declined 20% in 2020.
Over the past year, CVGI’s share price has increased from about $4.50 to about $10.75 per share, despite the pandemic negatively affecting its business. The pandemic has had a major negative impact on this company because of a “severe disruption” in producing commercial vehicles.
What makes CVGI an interesting and upcoming stock?
CVGI has recognized that they need to adapt to the future by investing in higher return businesses. They have increased their focus on electronic vehicle manufacturing and warehouse automation, which results will benefit from the continued growth in ecommerce.
For Q2 2021, CVGI had record sales of $258 million. Warehouse automation increased 25% over the prior quarter. As a result of ecommerce deliveries, demand for trucks should grow and CVGI will likely gain more sales in this area in addition to warehouse automation. Also, with electric trucks now coming to the public, CVGI should look to make a jump since they specialize in truck manufacturing and are moving towards manufacturing electric vehicle components including electric trucks.
Cites: https://cvgrp.com/
CVGI STOCK PRICE (US$): PAST 5 YEARS THROUGH SEPT 2021
