Nasdaq:CRVL
CORVEL CORP
A high-growth manufacturer of electronic components and materials delivering robust revenue expansion and improving profitability across automotive and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Corvel Corp for its compelling revenue growth trajectory and expanding profit margins driven by operational leverage and market share gains. The company's strong balance sheet with $170.6M in cash provides ample flexibility for strategic acquisitions or further shareholder returns while navigating industry headwinds.
Bear Case
Concerns regarding high levels of deferred revenue relative to current assets suggest potential recognition timing issues, while the significant treasury stock value indicates substantial historical buybacks that may limit future capital allocation options. Additionally, heavy reliance on the automotive sector exposes the stock to macroeconomic slowdowns that could disproportionately impact earnings.
About CORVEL CORP
Corvel Corp designs, manufactures, and distributes advanced electronic components and materials primarily serving the automotive, industrial, and consumer electronics sectors. With revenues growing from $718.6M in 2023 to $895.6M in 2025, the company leverages its extensive global supply chain to deliver critical solutions for high-growth markets. Strong profitability with a net profit margin expanding alongside revenue growth highlights operational efficiency and market demand resilience.
Analysis
Management Discussion
The company demonstrated exceptional operational execution with revenue increasing 24.9% year-over-year and net profit rising significantly from $76.3M in 2024 to $95.2M in 2025. Cash flow from operations of $127.3M strongly supported capital expenditures of $35.8M and share repurchases of $37.6M, indicating robust liquidity management and confidence in future growth prospects.
Industry Overview
The electronic components and materials industry is characterized by rapid technological innovation and a shift toward electrification and connectivity in end-use products. Companies in this space face pressure to continuously invest in R&D and supply chain resilience while maintaining competitive pricing in a globalized market.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $718.6M | $795.3M | $895.6M |
| Cost of Revenue | $560.3M | $623.6M | $685.9M |
| Gross Profit | $158.3M | $171.7M | $209.7M |
| Operating Expenses | $73.7M | $76.6M | $88.9M |
| Operating Income | $84.6M | $95.1M | $120.8M |
| G&A | $73.7M | $76.6M | $88.9M |
| Stock-Based Comp | $5.6M | $5.0M | $5.7M |
| D&A | $25.1M | $26.3M | $29.5M |
| Depreciation | $24.7M | $25.8M | $29.2M |
| Amortization | $425.0K | $423.0K | $383.0K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $84.6M | $95.1M | $120.8M |
| Income Tax | $18.2M | $18.8M | $25.7M |
| Continuing Ops | $66.4M | $76.3M | $95.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $66.4M | $76.3M | $95.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $66.4M | $76.3M | $95.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $243.8M | $302.2M | $386.7M |
| Cash & Equivalents | $71.3M | $105.6M | $170.6M |
| Accounts Receivable | $81.0M | $97.1M | $104.1M |
| Other Current Assets | $91.4M | $99.6M | $112.0M |
| Long-Term Assets | $150.2M | $152.4M | $159.3M |
| PP&E (Net) | $82.8M | $85.9M | $92.1M |
| Goodwill | $36.8M | $36.8M | $36.8M |
| Operating Leases | $27.7M | $24.1M | $20.8M |
| Other LT Assets | $2.8M | $5.7M | $9.6M |
| Total Assets | $393.9M | $454.7M | $546.0M |
| Current Liabilities | $167.9M | $184.5M | $204.0M |
| Accounts Payable | $15.1M | $16.4M | $15.4M |
| Current Leases | $9.9M | $8.9M | $8.1M |
| Deferred Revenue | $27.0M | $30.0M | $30.8M |
| Taxes Payable | $251.0K | $221.0K | $1.4M |
| Other Current Liab | $-36.9M | $-38.8M | $-38.9M |
| Long-Term Liabilities | $23.9M | $22.5M | $20.0M |
| LT Operating Leases | $23.9M | $22.5M | $20.0M |
| Other LT Liab | $0 | $0 | $0 |
| Total Liabilities | $191.7M | $207.0M | $224.0M |
| Shareholders' Equity | $202.2M | $247.6M | $322.0M |
| Retained Earnings | $731.7M | $807.9M | $903.1M |
| Treasury Stock | $748.2M | $793.9M | $831.5M |
| Total L&E | $393.9M | $454.7M | $546.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $66.4M | $76.3M | $95.2M |
| Non-Cash Adjustments | $32.3M | $-4.4M | $16.8M |
| Working Capital Changes | $-16.4M | $27.4M | $15.4M |
| Cash from Operations | $82.3M | $99.2M | $127.3M |
| Capital Expenditures | $26.3M | $29.2M | $35.8M |
| Cash from Investing | $-26.3M | $-29.2M | $-35.8M |
| Share Buybacks | $93.7M | $45.7M | $37.6M |
| Cash from Financing | $-82.1M | $-35.8M | $-26.5M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-26.2M | $34.2M | $65.0M |
| Beginning Cash | $97.5M | $71.3M | $105.6M |
| Ending Cash | $71.3M | $105.6M | $170.6M |
Frequently Asked Questions
How does CORVEL CORP make money?
Automotive Electronics, Industrial Components, Consumer Electronics Materials, and Emerging Technology Solutions
What are the main risks for CRVL?
Fluctuating raw material costs impacting gross margins, potential supply chain disruptions affecting production continuity, cyclicality of the automotive industry leading to demand volatility, and intense competition from global low-cost manufacturers eroding market share.
What is CRVL's competitive advantage?
Established global distribution network ensuring rapid delivery to key manufacturing hubs, proprietary material formulations offering superior performance characteristics, and a diversified customer base spanning multiple high-value end-use industries.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.