COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX-V:COV - CA22282D3022 - Common Stock
2.01 CAD
-0.04 (-1.95%)
Overall COV gets a fundamental rating of 6 out of 10. We evaluated COV against 22 industry peers in the Biotechnology industry. COV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. COV has a correct valuation and a medium growth rate. With these ratings, COV could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year COV was profitable.
COV had a positive operating cash flow in the past year.
In multiple years COV reported negative net income over the last 5 years.
In multiple years COV reported negative operating cash flow during the last 5 years.
1.2 Ratios
COV has a Return On Assets of 6.56%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
COV's Return On Equity of 7.78% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV has a Return On Invested Capital of 5.16%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROIC | 5.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.00%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
COV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 6.60%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of COV has grown nicely.
COV has a Gross Margin of 55.68%. This is amongst the best in the industry. COV outperforms 90.91% of its industry peers.
In the last couple of years the Gross Margin of COV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% |
OM growth 3Y233.18%
OM growth 5YN/A
PM growth 3Y-58.52%
PM growth 5YN/A
GM growth 3Y7.01%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COV is destroying value.
Compared to 5 years ago, COV has more shares outstanding
2.2 Solvency
COV has an Altman-Z score of 6.65. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
COV has a better Altman-Z score (6.65) than 90.91% of its industry peers.
The Debt to FCF ratio of COV is 0.29, which is an excellent value as it means it would take COV, only 0.29 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.29, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.02, COV is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.65 |
ROIC/WACC0.66
WACC7.83%
2.3 Liquidity
A Current Ratio of 6.57 indicates that COV has no problem at all paying its short term obligations.
COV has a better Current ratio (6.57) than 86.36% of its industry peers.
A Quick Ratio of 4.91 indicates that COV has no problem at all paying its short term obligations.
COV has a better Quick ratio (4.91) than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 350.62%, which is quite impressive.
Measured over the past years, COV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -50.83% on average per year.
COV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.00%.
COV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
EPS 1Y (TTM)350.62%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
3.2 Future
COV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.83% yearly.
The Revenue is expected to grow by 9.82% on average over the next years. This is quite good.
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.83%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.12 indicates a quite expensive valuation of COV.
COV's Price/Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 100.00% of the companies in the same industry.
COV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
A Price/Forward Earnings ratio of 16.26 indicates a correct valuation of COV.
Based on the Price/Forward Earnings ratio, COV is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (32.73), we can say COV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 95.45% of the companies in the same industry.
COV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COV is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The decent profitability rating of COV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 7.46%, which is a nice return.
COV's Dividend Yield is rather good when compared to the industry average which is at 7.46. COV pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, COV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
5.2 History
COV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
TSX-V:COV (11/7/2025, 7:00:00 PM)
2.01
-0.04 (-1.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners5.11%
Ins Owner ChangeN/A
Market Cap55.11M
Revenue(TTM)32.99M
Net Income(TTM)2.31M
Analysts84.44
Price Target3.83 (90.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.91%
Min EPS beat(2)-100%
Max EPS beat(2)94.17%
EPS beat(4)2
Avg EPS beat(4)40.61%
Min EPS beat(4)-100%
Max EPS beat(4)229.45%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.47%
Min Revenue beat(2)-12.98%
Max Revenue beat(2)-3.96%
Revenue beat(4)1
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-12.98%
Max Revenue beat(4)32.12%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-88.89%
Revenue NQ rev (1m)4.86%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 16.26 | ||
| P/S | 1.67 | ||
| P/FCF | 12.58 | ||
| P/OCF | 10.86 | ||
| P/B | 1.86 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)0.08
EY3.98%
EPS(NY)0.12
Fwd EY6.15%
FCF(TTM)0.16
FCFY7.95%
OCF(TTM)0.19
OCFY9.21%
SpS1.2
BVpS1.08
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROCE | 7.16% | ||
| ROIC | 5.16% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 14.27% | ||
| OM | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% | ||
| FCFM | 13.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y199.36%
ROICexgc growth 5YN/A
ROICexc growth 3Y198.52%
ROICexc growth 5YN/A
OM growth 3Y233.18%
OM growth 5YN/A
PM growth 3Y-58.52%
PM growth 5YN/A
GM growth 3Y7.01%
GM growth 5Y-1.09%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 73.17% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.18% | ||
| Profit Quality | 189.61% | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 | ||
| Altman-Z | 6.65 |
F-Score5
WACC7.83%
ROIC/WACC0.66
Cap/Depr(3y)94.27%
Cap/Depr(5y)67.08%
Cap/Sales(3y)4.08%
Cap/Sales(5y)2.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)350.62%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.83%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.82%
EBIT growth 1Y258.74%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year-50.79%
EBIT Next 3Y21.1%
EBIT Next 5Y21.23%
FCF growth 1Y225.56%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y353.8%
OCF growth 3Y-49.67%
OCF growth 5YN/A
COVALON TECHNOLOGIES LTD / COV.CA FAQ
Can you provide the ChartMill fundamental rating for COVALON TECHNOLOGIES LTD?
ChartMill assigns a fundamental rating of 6 / 10 to COV.CA.
What is the valuation status of COVALON TECHNOLOGIES LTD (COV.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to COVALON TECHNOLOGIES LTD (COV.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for COVALON TECHNOLOGIES LTD?
COVALON TECHNOLOGIES LTD (COV.CA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for COVALON TECHNOLOGIES LTD?
The Earnings per Share (EPS) of COVALON TECHNOLOGIES LTD (COV.CA) is expected to decline by -92.31% in the next year.