COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
TSX-V:COV - TSX Venture Exchange - CA22282D3022 - Common Stock - Currency: CAD
COV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 24 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. This makes COV very considerable for quality investing!
1. Profitability
1.1 Basic Checks
COV had positive earnings in the past year.
In the past year COV had a positive cash flow from operations.
In multiple years COV reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: COV reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 10.52%, COV belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
With an excellent Return On Equity value of 11.87%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Return On Invested Capital of 8.61%. This is amongst the best in the industry. COV outperforms 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROIC | 8.61% |
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
COV's Profit Margin of 10.92% is amongst the best of the industry. COV outperforms 95.83% of its industry peers.
COV's Profit Margin has declined in the last couple of years.
COV has a better Operating Margin (11.04%) than 95.83% of its industry peers.
COV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 58.82%, COV belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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 | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% |
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
COV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for COV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 11.64 indicates that COV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.64, COV belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
The Debt to FCF ratio of COV is 0.13, which is an excellent value as it means it would take COV, only 0.13 years of fcf income to pay off all of its debts.
COV's Debt to FCF ratio of 0.13 is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, COV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 11.64 |
ROIC/WACC1.09
WACC7.86%
2.3 Liquidity
COV has a Current Ratio of 8.39. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a better Current ratio (8.39) than 83.33% of its industry peers.
COV has a Quick Ratio of 6.09. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 6.09, COV belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 225.38% over the past year.
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.
The Revenue has grown by 28.97% in the past year. This is a very strong growth!
The Revenue has been decreasing by -1.73% on average over the past years.
EPS 1Y (TTM)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-74.72%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-14.16%
3.2 Future
Based on estimates for the next years, COV will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.69% on average per year.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y14.69%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
COV is valuated rather expensively with a Price/Earnings ratio of 20.00.
Based on the Price/Earnings ratio, COV is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
COV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.24, COV can be considered very expensive at the moment.
COV's Price/Forward Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (21.90), we can say COV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 25.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COV indicates a rather cheap valuation: COV is cheaper than 95.83% of the companies listed in the same industry.
COV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COV is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 11.4 |
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-12.29%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
COV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (7/3/2025, 7:00:00 PM)
2.6
+0.16 (+6.56%)
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 Cap71.29M
Analysts84.44
Price Target3.83 (47.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)131.81%
Min EPS beat(2)34.17%
Max EPS beat(2)229.45%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)12.25%
Min Revenue beat(2)-7.63%
Max Revenue beat(2)32.12%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-14.77%
PT rev (3m)-14.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)125%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 25.24 | ||
| P/S | 2.11 | ||
| P/FCF | 14.87 | ||
| P/OCF | 13.79 | ||
| P/B | 2.29 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)0.13
EY5%
EPS(NY)0.1
Fwd EY3.96%
FCF(TTM)0.17
FCFY6.73%
OCF(TTM)0.19
OCFY7.25%
SpS1.23
BVpS1.14
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROCE | 11.95% | ||
| ROIC | 8.61% | ||
| ROICexc | 20.33% | ||
| ROICexgc | 22.79% | ||
| OM | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% | ||
| FCFM | 14.17% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
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-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 37.7% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.37% | ||
| Profit Quality | 129.74% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 | ||
| Altman-Z | 11.64 |
F-Score7
WACC7.86%
ROIC/WACC1.09
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)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-74.72%
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y14.69%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-14.16%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.57%
EBIT growth 1Y208.63%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year17.64%
EBIT Next 3Y19.17%
EBIT Next 5Y20.74%
FCF growth 1Y169.43%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y192.47%
OCF growth 3Y-49.67%
OCF growth 5YN/A